ASX Upgrades its Equities Clearing Capabilities Via Nasdaq’s Technology Suite

The reliance on Nasdaq's technology is the latest partnership between the two exchanges that has seen the upgrading of ASX's

Nasdaq (Nasdaq:NDAQ) has been selected by the Australian Securities Exchange (ASX) for the implementation of its equity options clearing technology, which is slated to replace the ASX’s existing equities technological configuration, according to a Nasdaq statement.

The ASX has been steadily upgrading its technology suite for the past year, having first embarked on the initiative in February 2015. The latest upgrade will see the phasing out of the ASX’s equities and equity options clearing technology, which will be undertaken by Nasdaq’s Genium INET Clearing platform.

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The Nasdaq’s Genium INET Clearing platform supports several asset classes, including traditional cash and fixed income securities, derivatives, and commodities, among others. The platform has already been in use at ASX for its futures clearing however. The reliance on Nasdaq technology is the latest partnership with ASX since going live with Sentinel Risk Manager, Nasdaq’s post-trade risk management solution.

According to Lars Ottersgård, Executive Vice President, Market Technology, Nasdaq, in a recent statement on the platform integration: “We are thrilled that ASX has chosen Nasdaq for these very essential post-trade developments. The post-trade space is undergoing significant global change from a regulatory, operational and customer requirement perspective. Proven technology that can provide flexible and improved product and service capability is critical in meeting the constantly changing post-trade environment.”

“This post-trade phase of ASX’s technology refresh will enable ASX to deliver globally proven technology and significant benefits to the Australian market, including increased flexibility, reduced complexity and scale efficiencies. While we have announced that ASX is exploring the potential of distributed ledger technology – or blockchain – to transform settlement processes in our market, we will continue to operate our existing post-trade services as normal,” added Tim Thurman, Chief Information Officer at ASX.

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