MELBOURNE, Australia--The operator of Australia's dominant securities exchange will turn to blockchain technology to manage the clearing and settlement of equity transactions.
ASX Ltd. said Thursday it will use distributed ledger technology, more commonly known as blockchain, to replace its Clearing House Electronic Subregister System.
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The decision to adopt the new technology follows the build of distributed ledger technology software and the completion of extensive suitability testing over the past two years, ASX said.
The new system will be operated by the company on a secure private network where participants are known and "permissioned" to have access. It will be designed without access barriers to non-affiliated market operators and clearing and settlement facilities, which ASX said will give customers choice as to how they use its post-trade services.
The current Chess system was introduced in the 1990s to record shareholdings, provide electronic communications and remove paper share certificates.
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(END) Dow Jones Newswires
December 06, 2017 17:34 ET (22:34 GMT)