The Sydney Stock Exchange is looking to beat its larger compatriot, the Australian Stock Exchange, to the punch in the development of a blockchain-based settlement system for equity securities.
While the ASX is working to a late-2017 deadline before greenlighting the deployment of a new blockchain-based post-trade system co-developed with Digital Asset Holdings, the SSX says it has already completed the first step towards the objective of building an instantaneous settlement-and-transfer-upon-trade (T-based DvP) platform. This follows the completion of a successfully prototyped smart register for real-time issuance and allocation of equity securities.
The SSX announced the blockchain settlement and registration initiative in May this year, forming an alliance with Bit Trade Labs to create a joint venture company, APX Settlement.
With the first phase of the project underway, APXS says it intends to extend the smart register beyond equity securities to commodities markets, and work with industry assurance and cyber security experts to develop verification methodologies to address systemic risks.
SSX chief Tony Sacre says: “SSX is looking to be a leader in the provision of markets for emerging technology companies, filling the void for this sector being exacerbated by ASX changes to its listing rules. We think the adoption of an innovative settlement and smart register service is well aligned with this objective.”