Sydney Stock Exchange is Developing a Blockchain for Smart Equity Securities

A Sydney Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term joint venture with Bit Trade Labs to develop a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term based settlement solution - APX Settlement Pty Limited (APXS) - has successfully prototyped its smart register for real-time issuance and allocation of equity securities. The firm says this marks the first step towards its objective of building an instantaneous settlement-and-transfer-upon-trade platform.

APXS says it intends to extend the smart register beyond equity securities to commodities markets, opening up opportunities for government and industry to "transform markets currently hampered by antiquated structures and technology." It is now evaluating the infrastructure for its production and is working with assurance and cyber security experts to develop verification methodologies to address systemic risks.

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APXS CEO David Lawrence said: “We are working with government, regulators, the Australian Digital Currency and Commerce Association (ADCCA) and our expanding group of industry partners to deliver innovative solutions using new technologies. Our ongoing program of development highlights the need for a technology agnostic regulatory environment to fully maximise the value of the emerging technology and competition.”

Jonathan Miller, Director of Bit Trade Labs, added: “Even at the early stages of this project we have found that taking a bold approach to development and working closely with collaborators is yielding exciting results. The scale of value and efficiencies that can be achieved through the use of a smart register promise to far exceed our initial expectations.”

ASX Void

Tony Sacre, CEO of Sydney Stock Exchange (SSX), commented: “SSX is looking to be a leader in the provision of markets for emerging technology companies, filling the void for this sector being exacerbated by ASX changes to its listing rules. We think the adoption of an innovative settlement and smart register service is well aligned with this objective.”

The ASX (Australian Securities Exchange) is facing headwinds regarding its plans to develop its own blockchain-based settlement system and this could be seen as an attempt to score points at its expense from its domestic competitor.