Blockchain-Based Trading System Steps Closer to ASX Access

The National Stock Exchange of Australia is now in talks with Australia's securities regulator to finalize access for its DLT system to ASX Clear, it said.

AccessTimeIconOct 20, 2020 at 9:20 a.m. UTC
Updated May 9, 2023 at 3:12 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The National Stock Exchange of Australia (NSX) said it will soon launch an automated trade clearing and settlement platform based on blockchain technology.

NSX said Tuesday its DLT-based Digital Exchange Subregister System (DESS), part of the ClearPay platform, was approved by the Australian Council of Financial Regulators at its October meeting. It is now working with the Australian Securities and Investments Commission on finalizing the process and the date it can go live on the Australian Securities Exchange.

It is aiming to access ASX Clear under the Open Access and Trade Acceptance Service regimes.

DESS is already "technically and operationally ready for service to commence data accumulation and writing to the blockchain," the company said.

As previously reported, DESS is joint venture between NSX and financial services firm iSignthis.

John Karantzis, CEO of iSignthis and NSX, had previously accused the ASX of blocking the venture access to its clearing services. The stock exchange suspended trading in iSignThis shares last October.

ASX said the suspension was in order to hold a review after a market research group raised concerns about iSignthis' disclosures, governance and shareholder structure.

ASX has itself been building a DLT-based clearing house system to replace its ageing CHESS system since 2017.

In a recent announcement, ASIC and the Reserve Bank of Australia told ASX to push on with development with minimal further delays.

NSX said its Nasdaq trading engine will initially be written to both the DESS and CHESS systems.

Unveiled in February, ClearPay uses distributed ledger technology to facilitate same-day settlements and up-to-date accounting between trading participants, the share registry, and the exchange. 

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.