Powered by MOMENTUM MEDIA

Possible CHESS replacement one year away: ASX

Killian Plastow
— 1 minute read

The ASX has revealed it is about a year away from creating a blockchain-based platform that could potentially replace the CHESS settlement system.

Speaking at an Australia-Israel Chamber of Commerce event in Sydney yesterday, ASX deputy chief executive Peter Hiom said his company's collaboration with Digital Asset Holdings is about a year away from delivering a viable CHESS replacement.

Mr Hiom said the ASX is “running at a pace [they’ve] never run before” with regards to the development of the new system, which is being conducted in partnership with US-based fintech company Digital Asset Holdings.

Advertisement
Advertisement

In January, the ASX announced it had taken a 5 per cent stake in the fintech start-up in a bid to “design a new post-trade solution for the Australian equity market”, and subsequently increased its stake to 8.5 per cent in June.

“We’ve got another year to go, but after that we’ll have much of what CHESS does today built in a distributed ledger,” Mr Hiom said.

However, he emphasised that the ASX has not decided whether it will use the platform created with Digital Asset.

Earlier this year, Mr Hiom assured stockbrokers at the 2016 Stockbrokers Conference that this kind of distributed ledger technology would not be spell an end for financial intermediaries.

Read more:

Northern Trust hires Asia fund services head

Inflation numbers surprise on the upside

No 'GoogleSuper' on the horizon

Investor confidence up again in October

CBA subsidiary makes hybrid security offer 

 

Possible CHESS replacement one year away: ASX
ID logo

related articles

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.