Australia’s National Stock Exchange could have a new opponent aided by blockchain technology. On Thursday, NSX Ltd., the owner of Australia’s NSE and iSignthis (ISX) financial institution, both publicly registered firms, declared that they would form a joint venture to provide a trading platform for digital securities.
A Platform That Will Compete With ASX
The entity has been named as ClearPay. The platform provided by ClearPay would be DLT(distributed ledger technology)-based and would offer DVP(delivery versus payment) settlement on the same day. iSignthis would give many solutions and would join its “know your customer’s customer” security within this platform.
The company cited they would compete with ASX(Australian Securities Exchange) using ClearPay. ASX was also developing a replacement for DLT for its old CHESS clearing system in alliance with Digital Asset, a blockchain company – by offering same-day settlement solutions in an industry that usually takes up to 3 days to completely clear trades. According to ASX, it would start industry tests for its new platform in July. The platform has been under development for some years.
What The CEO Of NSX Cited
According to a press release, NSX acting CEO, Thomas Price, cited that the market completely agreed that the cash equity exchanges were suffering a “global technology revolution,” which began challenging clearing and settlement legacy methods.
Based on the shareholders’ contract between the companies, ISX has spent $4.2 million in NSX through a private placement. That brought a 12.96per cent stake for an investor at $0.145 per share in NSX.
By early 2021, ClearPay has been expected to go live. After that, companies expected the international and domestic broker network to connect through ISO20022, an interchange standard for electronic data, and involve using a blockchain having an industrial standard.
With Australia’s NSE as the central authority, the DLT platform would be accessible to share registry operators and participants.