ASX's Blockchain Upgrade Costing Members 'Millions,' Says Industry Body
“The investment required to operate in global markets is getting more and more intense,” said association CEO Judith Fox.
The head of an Australian professional body for the stockbroking and investment advice industry says a blockchain upgrade to the country's major securities bourse is costing members millions.
- Judith Fox, CEO of the Stockbrokers and Financial Advisers Association said costs to the group's members were rising as a result of an upgrade to the Australian Securities Exchange's (ASX) aging CHESS system.
- “Many of our members are spending millions of dollars in order to be able to interact with the new distributed ledger technology that the ASX is implementing,” Fox said.
- Fox was speaking during the country's Senate economics legislation committee, the Australian Financial Review reported Sunday.
- An overhaul of the outdated 25-year-old Clearing House Electronic Subregister System, or CHESS, is being replaced by a blockchain-like iteration designed to speed up clearing and settlement.
- Fox argues members, who aren't only in the business of providing industry advice, are connected in some way to the ASX and "other global exchanges."
- “The investment required to operate in global markets is getting more and more intense,” said Fox as cited in the report.
- A spokesperson for the ASX, who was present at the committee, said upgrading would entail some costs and that those costs would need to be determined by customers.
- “Customers have choice about how they wish to interact with the new CHESS system," the spokesperson said.
- ASX's blockchain upgrade, a world first, is currently in the testing phase of its development cycle and is expected in 2022-23.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, 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.