The Australian Securities Exchange is Releasing a Blockchain-Based Clearing System

The Bit Journal Editor
By The Bit Journal Editor 2 comments
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The Australian Securities Exchange is releasing a blockchain-based clearing system. The Australian Securities Exchange (ASX) has abandoned its long-awaited blockchain upgrade to the Clearing House Electronic Subregister System (CHESS). In a statement on Thursday, ASX said that the decision was made due to the lack of predictability of the solution and that a penalty of 250 million Australian dollars ($168) will be received. The Australian Securities Exchange selects Digital Asset Holdings

According to research from Accenture consultancy, there are serious problems in the regulation of the blockchain system, including a lack of clarity on how the requirements of the ASX will affect the program and the registry.

The announcement ended a long and controversial process that at first appeared to be a victory for corporate adoption of distributed ledger technology. In 2017, the ASX revealed that it had selected blockchain company Digital Asset Holdings to develop a system that would take over responsibility for CHESS.

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Australian Trading system after completion

According to ASX President Damian Roche, the company has led the way in creating a system that combines innovation and advanced technology with safety and reliability. There are serious technical, governance and delivery issues that need to be addressed, as is the next review that takes into account the recommendations of the independent review. After the report, the governors expressed their approval in a statement.

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