The Australian Securities Exchange (ASX) has started the testing of its new equities clearing and settlement system, which is based on distributed ledger technology (DLT).
The ASX opened the Customer Development Environment (CDE) yesterday, which gives customers the ability to interact and experiment with the new system.
The aim of the new DLT platform is to replace the ASX’s current CHESS system.
“Delivering the development environment for customers on schedule is a major step forward in ASX’s CHESS replacement journey,” said ASX executive general manager equity post-trade services Cliff Richards.
“We are proud of this achievement and very grateful for the support of our partner Digital Asset and our customers.
“While we believe DLT offers exciting opportunities for the whole market to innovate, there is much still to do. We continue to work closely with our customers as we progress towards delivery of the new system.”
The ASX said the new system was designed to reduce costs and complexity, and facilitate new business opportunities for intermediaries, issuers, investors and other users.
“We know our progress is being watched internationally and is an important bellwether for the technology’s adoption,” said ASX deputy CEO Peter Hiom.
“It represents the first time market participants anywhere in the world can experience the benefits of ‘taking a node’ and establishing direct connectivity to a golden source record of real-time data via distributed ledger technology.”
The ASX said it was on track for the new DLT-based system to be live March-April 2021.