The Australian Security Exchange is all set to replace the existing Clearing House Electronic Subregister System (CHESS) with the blockchain technology. However, ASX’s client and it’s the only competitor, has appealed to the region’s competition regulators to look into the matter.
According to a Reuters report, Chi-X Australia wants ASX to consider the implications of blockchain technology. ASX is currently testing the technology to replace its registry, settlement, and clearing system with blockchain technology to reduce the cost for customers.
ASX is planning to replace CHESS by distributed ledger technology by April 2021. Chi-X believes that adopting blockchain technology would Australian-listed bourse an unfair advantage. Michael Somes, Chi-X General Counsel, said that there is a substantial moat around the ASX clearing and settlement business, and the CHESS replacement project is perhaps making it bigger.
ASX’s spokesman said that the issue is a matter of government. Chi-X, which is owned by J.C. Flowers, said that they handle about 80$ of total share trading volumes in the country and are dependent on the Australian Security Exchange for clearing services.