ASX May Save over $20B Through DLT
According to the executive head of Australia’s Securities Exchange, announced that the ASX may possibly save up to $23B as part of its replacing the current system of settlement with DLT. Dominic Stevens, the CEO comments on how distributed ledger-tech replacing the current CHESS system would provide far stronger performances in terms of sending messages and acquiring information.
As of now, equity clearing and settlement charges are the responsible factor in over $100M within the industry alone and in regards to the “super industry”, the cost comes to around a massive $23B charge in costs. The CEO then stated that a transition to distributed tech will result in incredible value through facilitating better business for customers and a vital supporter in regards to innovation for companies and investors.
He states that on a daily basis and throughout each day, individuals send and receive messages to CHESS as a means of ensuring ultimate reconciliation. The entire procedure is significantly costly and vulnerable to many mistakes and other errors. He adds that individual’s databases may differ, essentially offering several different kinds of software which conduct the same exact function and DLT can provide solutions to all these problems.
This means that through the new system, users will fully operate their own nodes as opposed to transmitting messages to and from and will be linked to the entire database instead of different ones, resulting in significantly fewer or non-existent errors. Those that still wish to operate on the same traditional method of messaging will still be allowed to.
The exchange announced this year that looking for reviews on the currently proposed replacement of CHESS with DLT and the CEO has confirmed on the 16th of August that ASX is aiming to fully integrate the system within two years. The platform is designed on tech provided by DAS which ASX owns a part of.