ASX may postpone blockchain clearing and settlement system launch

Market participants are demanding the Australian Securities Exchange (ASX) delay the launch of clearing and settlementsystems on the blockchain for two years, because the new project “lacks clarity”.

Share registration company Computershare has told the Financial Times it is in favor of delaying the implementation of a new blockchain clearing and settlement system being developed by the ASX.

Computershare emphasized the lack of a clearinformation on the technical and operational aspects of the new system, the structure of commissions for new services, and how the regulation of the new system will be implemented.

Several ASX customers have also expressedconcerns about the ability of the exchange to spread its dominant position in the market for clearing and settlement in other markets, including share registration services.

“This new platform is owned by ASX. ASX is a monopolist and it is not perfect. I believe that it should not deploy such a system, ”said Tony Cunningham, founder of CPS Capital, an exchange broker.

Apparently, ASX decided to listen to the opinions of market participants and agreed to a “slight delay” in the launch of the platform. The exchange said:

“We know that there are stakeholders,who want to make small changes to the start date, as well as those who want to postpone the launch for a long time. We will carefully study the feedback from consultants before making a final decision on the launch date of the system. ”

Back in late 2017, the ASX reported that blockchainwill replace its current clearing and settlement system, the Clearing House Electronic Subregister System (CHESS). Last August, the exchange confirmed the active development of a clearing and settlement system on the blockchain.

Also last year it became known thatThe system is being developed jointly with VMware. At the same time, this is not the first time that the initiative has raised questions from market participants. Last fall, rival ASX demanded that the regulator investigate the legality of implementing a blockchain trading system.

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