ASX to replace CHESS with blockchain technology
(27 October 2015 – Australia) In an interview with the Sydney Morning Herald, the Australian Securities Exchange (ASX) has said it could replace its clearing and settlement system with a blockchain-based alternative.
The ASX is in the process of overhauling its technology infrastructure, and preparing to replace the Clearing House Electronic Subregister System (Chess) by the end of 2016.
Managing director Elmer Funke Kupper said that the exchange operator is "looking very closely at blockchain," citing the technology's potential to "create efficiencies".
"We see Chess replacement as a one-in-20-year opportunity. We're thinking about whether there are smarter ways to do things - to remove a lot of administrative costs and reconciliation costs from the back end of investment banking and broking, and this is where blockchain could be potentially quite helpful," says Funke Kupper.
The move follows a conglomerate of financial institutions from around the world, including Australia’s ‘Big Four’, joining together to research the viability of the technology in the financial system.
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