SETL wants to settle and clear equities in competition with ASX
The ASX is facing competition for clearing and settling equities, with blockchain start-up SETL pledging to build a post-trading system cheaper and to deploy it quicker than the replacement for the existing CHESS infrastructure, which is being developed by the ASX itself and US group Digital Asset Holdings. London-based SETL is raising capital from some Australian brokers and has retained local lawyers to prepare regulatory applications to approve its system. The move comes as the federal government considers whether to remove the ASX’s monopoly over equities settlement and clearing – the vital “pipes” that underpin the operation of Australia’s equity markets – later this year, if regulators can devise a […]
Bitcoin is now more valuable than gold
The currency’s success is in part due to its popularity in Asia. The Bitcoin digital currency has exceeded the value of gold for the first time in history, hitting a high of $US1,278.21 while the price of an ounce of gold was worth $US1,236.10 at the time of writing. The value of Bitcoin has been steadily increasing over the last three months, rising 30%, while the value of gold has decreased, suggesting people are starting to accept the digital currency as a serious way to pay for goods. Bitcoin’s value has risen as a result of increased demand in China, despite a crackdown by the government, which claimed the currency […]
KWM backs calls for blockchain standards
A King & Wood Mallesons partner has supported the findings of Standards Australia’s Roadmap for Blockchain Standards Report, which aims to guide this rapidly developing technology. The report was released late last week as part of a larger initiative led by Standards Australia to develop international blockchain standards. KWM partner Scott Farrell, who sits on the federal government’s FinTech Advisory Group, said the report is an important step in establishing Australia as a leader in the blockchain space. He noted that its recommendations would position Australia to capitalise on blockchain, improving industry, consumer and market confidence in the technology. “Australia is emerging as one of the global leaders in blockchain […]
Brokers want ASX blockchain to do more
Stockbrokers have told the Australian Securities Exchange that to justify the costs of moving to a new technology to replace CHESS, a broad range of “system enhancements” should be added to the project, including eliminating paper processes that manage corporate actions and the transfer of securities. The ASX published on Monday its response to months of market consultation on the replacement of the CHESS equities settlement and clearing system, amid reports some stakeholders are unhappy with the process. ASX is considering replacing CHESS with a private blockchain it is developing with New York start-up Digital Asset Holdings, in which ASX has invested $US17.4 million for a 8.5 per cent stake. […]
Australia is targeting money laundering and terrorism in a sophisticated new collaboration with banks and fintech
A new government and private sector alliance was launched this morning to combat “serious financial crime”, including activities involving terrorism and money laundering. The new Fintel Alliance has brought together 19 partners including the Australian Federal Police, NSW Police, all four major banks, Australian Taxation Office, Western Union and fintech giant PayPal with intelligence agencies like AUSTRAC, ASIO and Australian Crime Commission. The organisation will target “terror financiers and gangs who deal in proceeds of crime, as well as white-collar criminals who think their crimes are victimless”, according to federal justice minister Michael Keenan. The Fintel Alliance’s “operational hub” sees government intelligence experts sitting alongside specialist staff from the financial […]
Fintech investments hit US$656m
Investment in Australian fintech hit US$656 million ($854.2 million) in 2016 across 25 deals, according to a survey. In an announcement by the Federal Treasurer, Scott Morrison, an analysis by KPMG found the average growth rate of fintech was around 90 per cent over the four years to 2016. This compared to the 47 per cent slide in fintech investment globally to US$24.7 billion in 2016. “The Turnbull Government is keenly aware that the financial services sector plays a critical role in the Australian economy,” the announcement said. Morrison noted the Government’s Fintech Advisory Group’s progress of the review of opportunities for blockchain, the examination of ways to improve data […]
Private equity rises to IBM’s blockchain cloud
Global fund administrator Northern Trust plans to seek approval from the Australian Securities and Investments Commission for a blockchain that promises to reduce administration costs for private equity funds and their investors. Chicago-based Northern Trust said on Wednesday it and technology giant IBM had created the first blockchain for the private equity market. The synchronised database will overhaul traditionally spreadsheet-based processes used by PE investors, managers, administrators, regulators, advisors and auditors that require extensive reconciliation. While various pilots and proofs of concept of blockchain are being tested across the global financial system, this project is significant because the distributed ledger, hosted in the IBM Cloud, is already live. It is […]
ASX targets ‘late 2017’ for blockchain decision
Ongoing negotiations with market participants about a potential blockchain replacement for the CHESS settlement system are likely to bear fruit later this year, says the ASX. Speaking at an ASX half-year result analyst briefing, chief executive Dominic Stevens said there is a high level of engagement in the post-trade sector about the proposed CHESS replacement. The ASX has an 8.5 per cent stake in US-based Digital Asset Holdings, which is working on developing a replacement for CHESS based on distributed ledger technology (DLT), also known as the ‘blockchain’. Mr Stevens said there has been a lot of engagement at the business committee level and the consultation process has seen a […]
