Sydney Stock Exchange and blockchain spin-off APXS weigh in to Oz clearing and settlement debate

Mr Tony Sacre, SSX Chief Executive, said “As a user of the ASX Settlement Facilitation Service, the commercial, transparent and non-discriminatory access to those services is essential to the operation of an efficient and cost effective market. We support the obligation upon ASX to ensure that any investments it makes in clearing and settlement systems do not raise barriers to access or reduce competition between listing venues.”

Mr David Lawrence, APXS Chief Executive, said “As the developer of an alternative settlement and registration initiative, we welcome the first steps in opening up competition. We note that there will be further guidance in relation to effective competition in cash equity settlement later.”

“However we believe the discussion needs to also extend along the full service chain beyond clearing and settlement into the contestability of asset registration services, currently a key component of the ASX’s CHESS system, and largely excluded from policy review to date. Competition alone does not solve fundamental problems. Competition and innovation together can be far more powerful. New and emerging technologies enable a complete re-think of how clearing, settlement and asset registration services can be provided in the equities market. In an environment focused upon the objectives of innovation, efficiency and competition, our alternative and open access blockchain settlement and registration solution is taking the opportunity to rethink an industry architecture which is a quarter of a century old.

“We believe that the value, efficiencies and cost reductions that can be achieved through rethinking clearing, settlement and asset registration services has the potential to far exceed the mere replacement of existing infrastructure,” David Lawrence said.