Sydney Stock Exchange is Developing a Blockchain for Smart Equity Securities

The Sydney Stock Exchange's blockchain first milestone is "filling the void for this sector being exacerbated by ASX."

A Sydney Stock Exchange joint venture with Bit Trade Labs to develop a blockchain based settlement solution – APX Settlement Pty Limited (APXS) – has successfully prototyped its smart register for real-time issuance and allocation of equity securities. The firm says this marks the first step towards its objective of building an instantaneous settlement-and-transfer-upon-trade platform.

APXS says it intends to extend the smart register beyond equity securities to commodities markets, opening up opportunities for government and industry to “transform markets currently hampered by antiquated structures and technology.” It is now evaluating the infrastructure for its production and is working with assurance and cyber security experts to develop verification methodologies to address systemic risks.

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APXS CEO David Lawrence said: “We are working with government, regulators, the Australian Digital Currency and Commerce Association (ADCCA) and our expanding group of industry partners to deliver innovative solutions using new technologies. Our ongoing program of development highlights the need for a technology agnostic regulatory environment to fully maximise the value of the emerging technology and competition.”

Jonathan Miller, Director of Bit Trade Labs, added: “Even at the early stages of this project we have found that taking a bold approach to development and working closely with collaborators is yielding exciting results. The scale of value and efficiencies that can be achieved through the use of a smart register promise to far exceed our initial expectations.”

ASX Void

Tony Sacre, CEO of Sydney Stock Exchange (SSX), commented: “SSX is looking to be a leader in the provision of markets for emerging technology companies, filling the void for this sector being exacerbated by ASX changes to its listing rules. We think the adoption of an innovative settlement and smart register service is well aligned with this objective.”

The ASX (Australian Securities Exchange) is facing headwinds regarding its plans to develop its own blockchain-based settlement system and this could be seen as an attempt to score points at its expense from its domestic competitor.

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