ASX's New CEO Reaffirms Commitment to Blockchain Transformation

As we reported before, the Australian Securities Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (ASX) is facing headwinds regarding its plans to develop a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based settlement system, such as public calls for the institution to reexamine its commitment to the technology. Now the venue's new head responds to critics by making it clear he stands firm in his support for the pioneering attempt.

Join the industry leaders at the Finance Magnates London Summit, 14-15 November, 2016. Register here!

In August, the ASX Board appointed Dominic Stevens as its managing director and newest CEO. He has now defended the blockchain plans, telling the Financial Times: “We are going through a transformation in technology. The other challenge is about being able to engage with our customers better, so they hold ASX’s services in high regard. We’re working with Digital Asset Holdings on trying to get to a stage where we could contemplate replacing ASX’s clearing system. That’s quite a project.”

Exemplifying the pushback from some in the market, John Fildes, CEO of Chi-X Australia, told the newspaper that brokers would prefer that ASX replace its existing solution with a standard protocol: “It is an extra cost burden not to use globally implemented systems.”

ASX owns approximately 8.5% of Blythe Masters’ Digital Asset Holdings which it selected to develop solutions for the Australian market utilizing distributed ledger technology. The exchange wants a blockchain solution that will help mitigate risk and reduce back-office administration and compliance costs, as well as offer faster settlement of equity transactions for investors.

ASX will reportedly only make a final decision on the viability of the implementation in the financial year that ends in June 2018.