Australian exchange to launch blockchain platform in 2023
The Australian Exchange has announced that it will postpone the start of the clearing system, which will operate on blockchain. The decision of the trading floor could not change even the request from the Reserve Bank of Australia.
Representatives of the Exchange said that the launch of the platform is postponed for two years, until 2023, while work on it continues. ASX announced the introduction of the technology back in 2017, when the platform planned to transfer a number of operations on the platform that operates on blockchain, by the end of 2020, but the pandemic has made its adjustments, and had to postpone the launch to a later date. The reason for the system’s postponement was global factors associated with reduced market volatility and changing trends in various stock exchange segments. Therefore, the platform requires improvement of some functions and expansion of capabilities, which will allow promptly reacting to changes. In addition, the technology itself requires improvement, as the processes during the pandemic have changed and now the platform needs more capacity to process post-trade operations. Moreover, the trading volume at the exchange itself has increased significantly, which also contributed to a number of changes.
Before postponing the launch date, the site interviewed a large number of companies that are working with it. As a result, many said that they would have time to prepare their infrastructure by 2022. However, among the participants of the exchange were those who doubted whether they would have time to do everything before that date. In addition, they asked developers to conduct industry-specific testing to better understand the compatibility of the functionality with their capabilities. Therefore, the exchange decided to postpone the launch until 2023 so that all users could fully use the system. During this time, the platform will be able to work in test mode, which minimizes the appearance of errors in full operation.
The Australian authorities support blockchain technology and are interested in the development of this area. Therefore, the Reserve Bank insisted on the early launch of the clearing system, and even sent an official request to the exchange with a request to speed up the start of the platform. So far, the electronic subscriber system CHESS has been applied at ASX.
Blockchain technology is the most advanced technology available today and is used in various fields. Its use for one company or another means a big step forward. Therefore, it is not only the Australian Exchange that is working to implement a new platform. London trading platform is also actively cooperating with IBM corporations on the issue of creating a system based on the blockage. In addition, the exchange will soon present a platform for trading shares of small and medium-sized companies in Italy.