The Australian Securities Exchange has delayed its switch to the blockchain after public lobbying from key stakeholders. According to the latest update from the Australian Securities Exchange, the exchange has officially delayed the rollout of its Distributed Ledger infrastructure to replace its current system for processing equity transactions. The Australian Securities Exchange currently uses the Clearing House Electronic Subregister System (CHESS), which it plans to replace by blockchain. The switch is now delayed till April 2022, a year push from its most recent timetable.
The ongoing pandemic and several other reasons cited by ASX for the delay
The Australian Securities Exchange cited several reasons for the delay, including the current COVID-19 pandemic, accommodating changes requested by stakeholders, and providing a larger window of opportunity for the development of blockchain infrastructure. The Deputy CEO of the securities exchange, Peter Hiom, said that they have listened to the diverse views of stakeholders and accommodated feedback on timing, user readiness, and changes to functionality. He further stated that the new CHESS system would “underpin Australia’s financial markets for the next decade and beyond.
The existing CHESS system users lobbied hard to delay the launch of the blockchain system, with some saying the switch “lacked clarity.”
The ASX has been working on the transition since 2017.
The Australian Securities Exchange has been working on the transition from the CHESS system to the blockchain technology since December 2017. The ASX released the first code for its replacement app development tool based on blockchain technology in May last year. Earlier, the exchange had scheduled to make the transition to blockchain technology in April 2021.
The blockchain technology is being used in many fields all over the world. The ongoing pandemic has also boosted the adoption of the technology that was initially intended to underpin cryptocurrency.