ASX Ties with VMware for Its Blockchain-Based Settlement System

ASX has been working with Digital Asset on the research of blockchain technology since 2016. ASX is working with Digital Asset Holdings to create a distributed ledger that could eventually replace the clearing and settlement systems provided by ASX through its CHESS platform. In 2016, ASX announced that it would work with Digital Asset Holdings, a US blockchain startup, on the system. ASX conducted a global search for DLT companies working on DLT’s financial services applications. ASX will adopt a global standard messaging protocol for CHESS Replacement ISO 20022. ASX will continue to consult with stakeholders before its planned launch in March 2018. ASX will use a similarly distributed ledger to replace its decades-old clearing and clearing system, called the Clearing House Electronic Sub-Register System (CHESS).

LES VISZLAI Advisory Strategist Blockchain technology has created the backbone of a new type of robust Internet that can solve the problem of malicious manipulation. It has long been regarded as a threat to CSDs and their role as intermediaries in securities transactions. It was confirmed to be one of the leading candidates for CHESS in October 2015, when Kupper took the unique opportunity in 20 years to completely revise its current systems.

The Australian Securities Exchange has formally requested to replace its CHESS core system for after-hours cash shares with distributed ledger or blockchain technology. The Australian Securities Exchange (ASX) announced today (7 December) that it would use Blockchain to clear and settle trades, becoming the world’s first mainstream stock market to use the technology behind Bitcoin for its core services starts. It has announced new details about its efforts to innovate on the Australian stock market with blockchain technology.

The ASX currently uses the Clearing House’s electronic sub-registry system (CHESS), and the new Distributed Ledger will be run alongside the existing system for a first phase of 6 to 12 months. The ASX has developed a blockchain-based solution for the industry over the past two years to see if the technology works on the local stock market scale. In today’s announcement of the largest Australian Stock Exchange, the ASX has confirmed that it is developing a private blockchain as a post-trade solution for the Australian stock market with US-based Digital Asset.