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- NSE and ASX, both publicly listed companies are going to partner up to make a new Distributed ledger technology (DLT) platform called ClearPay.
- The platform ClearPay is intended to compete with the Australian Securities Exchange (ASX).
- NSX has invested $4.2 million via a private placement as a part of the shareholder’s agreement between the firms.
NSX Ltd., the owner of the National Stock Exchange of Australia and the financial institution iSignthis (ISX), is making a new platform in a joint venture. Both publicly listed companies are going to partner up to make a new Distributed ledger technology (DLT) platform called ClearPay.
The DLT platform will provide DVP settlement on the same day. The platform ClearPay is intended to compete with the Australian Securities Exchange (ASX), which also is now building a new platform based on the DLT to replace its old CHESS clearing system. The ASX is working in partnership with the blockchain firm Digital Asset.
This is an industry where it takes about three days to clear the trades fully and by providing a same-day delivery system, the platforms will make it a lot easier to clear trades quickly. The platform made by ASX is planning to begin it’s industry tests in July this year, the platform has been in works for some years now.
The CEO of NSX, Thomas Price, in a press release said that the market is in “broad agreement” that the cash equity exchanges were facing a global technology revolution, that will change the methods of clearing and settlement used today.
“Having patiently monitored the development of the appropriate technology … we consider that this is the right time for the NSX to act,” Price said.
NSX has invested $4.2 million via a private placement as a part of the shareholder’s agreement between the firms. ClearPay has been scheduled to give live by early 2021.
When the platform, ClearPay, goes live, the firms expect the domestic and international brokerage networks to connect via the electronic data interchange standard ISO20022.
With the National Stock Exchange of Australia as the central authority, the DLT platform will be accessible, expected in 2021, to all participants and share registry operators.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
