The Australian Stock Exchange (ASX) has released a full financial report for 2019, which contains information about the settlement system being developed based on a distributed registry.
At the end of 2017, the Australian Stock Exchange confirmed that the blockchain will replace its current Clearing House Electronic Subregister System (CHESS). Then the ASX became the first major stock exchange to take such a step. The decision was made after the “successful creation of enterprise software” based on the blockchain, which was subjected to “extensive testing” for two years.
The ASX annual report published this week indicates that the work on completing the development of the system is “well underway”. The new blockchain-based system “will provide increased security, stability and performance” for post-trading services for stocks. It will also offer new functionality beyond those currently included in CHESS, with a new ISO 20022 (International Standard for Financial Services) messaging protocol that ” meets local and global standards.”
The document states that institutions will be given the opportunity to access the future system by hosting their own DLT node. According to the ASX, this will open access to synchronized and standardized data to all authorized participants in the network, as well as open up the possibilities of advanced data auditing and analysis. It will also allow the market to create “new, innovative” applications.
The ASX also noted that it is studying cases of using DLT-based applications with the participation of “several parties” when working with stocks. In terms of costs, ASX capital investments in infrastructure, including a blockchain-based system, cost $75.1 million in the 2019 financial year. This also includes work on a new secondary data center, the ASX Net communications infrastructure, the ASX DataSphere data analysis platform, and efforts to accelerate enterprise transactions.
In general, the exchange operator said that it was a “confident” year with revenue of $863.8 million, which is 6.5% more than the same indicator for the last financial year. The underlying profit after taxes and expenses was $492 million, which is 7.7% more than in 2018.
In May, ASX introduced a
pilot series of customer service standards (CDE) as part of the transfer of the settlement system to the blockchain. Then the exchange noted that the addition of additional functions will be completed by August, and the final version will be ready by mid-2020