DLT System Close To ASX Integration

The National Stock Exchange of Australia (NSX) is a stock exchange company that has finished working on a distributed ledger technology (DLT) trading system. This Tuesday, they’ve announced that the hard work is done and it is only a matter of time before they are permitted to connect to the Australian Securities Exchange (ASX).

Approved By The Council Of Financial Regulators

The new DLT platform built by NSX is called Digital Exchange Subregister System (DESS) – and is a part of the ClearPay platform. Earlier this month, the Australian Council of Financial Regulators approved the trading system for financial use, clearing the first important obstacle.

The company is currently hashing out the final details with the Australian Securities and Investments Commission. Once the application process is complete and the launch date is settled, DESS will be ready to serve Australian investors partial to blockchain technology.

A joint venture between the NSX and iSignthis – a company whose mission is to provide financial services and solutions around the globe – DESS was created in order to replace the CHESS system the ASX is currently using.

Ever since 2017, the ASX has also been working on its own version of a DLT trading platform – but in spite of pressures from the RBA to finish the platform, it seems the NSX has gotten there first.

According to Dominic Stevens – the CEO of ASX – the delays were due to the expansion in the scope of the ASX DLT project. Due to the trading volume explosion seen in March, the ASX realized that a more powerful platform than originally thought was required.

“Some, including an important back-office systems provider for a substantial part of the market, expressed a preference for an extra six to nine months, which we are including in our deliberations. With the volume explosion we saw in March, we’re now looking at plans to ultimately double or triple that original volume target, which will increase go-live system capacity.”

It remains to be seen which DLT system will replace CHESS – and which system will please investors more.