The Australian stock exchange ASX had already begun to develop a blockchain infrastructure in December 2017. This infrastructure will replace the current system for processing equity transactions.
The current system, known as the Clearing House Eletronic Subregister System (CHESS), is to be replaced with a blockchain solution. However, due to the long-lasting COVID 19 pandemic, the date for this change has now been delayed.
The stock exchange is currently looking for a new date for integrating the block chain
The date set at April 2021 has been deleted for the time being. This was announced by the ASX in a published announcement on 25 March. In view of the evolving crisis and due to various issues discussed before the outbreak, the Exchange is re-planning the changeover.
The Australian exchange plans to approach exchange participants in June to discuss a new start date. One problem with the changeover would be the large number of employees who are working at home due to the corona crisis. The ability to participate in coordinated activities during the year and their implementation is therefore still unclear, which could cause further problems.
At the same time, the stock exchange has given its full backing to the changeover and emphasises that it will definitely take place. Only the exact implementation date remains questionable for the time being. ASX CEO Peter Hiom commented as follows:
“The ASX remains fully committed to the replacement of CHESS. We will continue to drive the project forward, including system development. (…) The investment we are making in the new system and in distributed accounting technology is to the long-term benefit of the financial services industry and the Australian economy.”
ASX is one of the 20 largest stock exchanges in the world by market capitalisation
The Australia Securities Exchange (ASX) is headquartered in Sydney and employs around 500 people. The market capitalisation of the companies listed on the exchange was 2,153 billion Australian dollars in November 2019, making it one of the 20 largest stock exchanges in the world in terms of market capitalisation.
* Originally published in German at CVJ.ch