ASX’s Blockchain-powered Project Goes Down
In order to transition a large portion of its workflow to a shared, distributed ledger resembling the blockchain, the Australian Securities Exchange (ASX) has terminated a six-year CHESS settlement and clearing system.
In 2017, ASX said that it had chosen blockchain company Digital Asset Holdings to create the system that would take the role of CHESS.
According to a press statement, ASX will reassess all aspects of the CHESS replacement project following the completion of an independent review conducted by Accenture and its own internal assessment.
The cancellation is the most recent setback for international exchanges trying to use blockchain and various other initiatives to put permissioned versions of the open technology made popular by Bitcoin into use.
“We began this project with the latest information available at that time, determined to deliver the Australian market a post-trade solution that balanced innovation and state-of-the-art technology with safety and reliability,” said ASX Chairman Damian Roche in the statement.
The CHESS replacement capitalized software will be derecognized in light of the solution uncertainty, resulting in charge of $245-255 million pre-tax in 1H23. This will have no impact on dividends.
In remarks made after the news, regulators expressed their disapproval. Governor of the Reserve Bank of Australia Philip Lowe commented on the news:
“ASX needs to prioritize developing a new plan to deliver safe and reliable clearing and settlement infrastructure.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Website: coincu.com
Harold
CoinCu News
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Blockchain
ASX’s Blockchain-powered Project Goes Down
In order to transition a large portion of its workflow to a shared, distributed ledger resembling the blockchain, the Australian Securities Exchange (ASX) has terminated a six-year CHESS settlement and clearing system.
In 2017, ASX said that it had chosen blockchain company Digital Asset Holdings to create the system that would take the role of CHESS.
According to a press statement, ASX will reassess all aspects of the CHESS replacement project following the completion of an independent review conducted by Accenture and its own internal assessment.
The cancellation is the most recent setback for international exchanges trying to use blockchain and various other initiatives to put permissioned versions of the open technology made popular by Bitcoin into use.
“We began this project with the latest information available at that time, determined to deliver the Australian market a post-trade solution that balanced innovation and state-of-the-art technology with safety and reliability,” said ASX Chairman Damian Roche in the statement.
The CHESS replacement capitalized software will be derecognized in light of the solution uncertainty, resulting in charge of $245-255 million pre-tax in 1H23. This will have no impact on dividends.
In remarks made after the news, regulators expressed their disapproval. Governor of the Reserve Bank of Australia Philip Lowe commented on the news:
“ASX needs to prioritize developing a new plan to deliver safe and reliable clearing and settlement infrastructure.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
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