The Australian Stock Exchange (ASX) has further delayed the switch to blockchain technology after the public pressure from the main actors.
According to an ASX update dated June 30th The exchange has officially delayed the provision of the blockchain infrastructure to replace the current system for processing capital transactions. ASX will now start the project, the replacement of Clearinghouse’s electronic registration system (CHESS), in April 2022, one year before the last schedule.
On the exchange Various reasons for change have been cited, including the current pandemic and adaptation to changes requested by stakeholders and increasing development opportunities.
Peter Hiom, CEO of ASX, said that The exchange “listened to the different views of the stakeholders and considered them on the basis of feedback, user readiness and changes in functionality”.. He said the new chess system “would support Australian financial markets for the next decade and beyond”.
Customer feedback leads to a shift
CHEES user pushed hard to delay the start of the ASX blockchain systemand some said the change was “unclear”.
The chess calendar has been checked since March, when ASX announced that it would consult on the deployment in June because of the pandemic.
Computer share, one of the leading Australian share registration companies, ASX under pressure during the consultation phase and asked for a two year delay. The company said it had received no critical information about the operation of the blockchain system. still about a difference in the tariffs that may be required for services.
Tony Cunningham, Founder of CPS Capital, a Western Australian stockbroker suggested that a delay might be appropriate to better clarify how Distributed Logging Technology (DLT) would work in ASX for the registration and brokerage of shares.
ASX Blockchain project development
As one of the first major exchanges to commit to using DLT, ASX has been working on the transition to blockchain since December 2017.
The exchange published the first code for its blockchain-based replacement app development tool in May 2019.. In October 2019, the Australian subsidiary of market operator Chi-X, who was ASX’s only competitor at the time, asked the Australian Competition and Consumer Commission regulators to investigate the potential impact of blockchain technology on commercial activities.
Cointelegraph reported that before the current pandemic The start date for CHESS was set for April 2021.