Explained: How ASX’s blockchain will change finance
Technological change is unsettling for incumbents making big profits from the status quo. In the case of financial markets, managing complex processes which often involve messy information has been a great business for intermediaries like the big share registries.
So could the renewed lobbying push by Computershare, Link Market Services and other various industry groups for more oversight of ASX’s blockchain project be more about their concerns over getting disrupted by emerging technology than it is about ASX expanding its CHESS clearing system replacement project?
And if ASX’s distributed ledger technology is used for not only clearing and settling equities, but synchronising countless processes across the economy, how should oversight of the ASX adapt?
Due Diligence sought to answer these questions by seeking the views of new thinkers in the superannuation, equities, registry and custody sectors. The conversations reveal that ASX is set to unleash innovation on a massive scale of the like financial markets have never seen before. Billions of dollars of savings will ultimately improve returns for investors.
The ASX of the future will not purely be a venue to trade equities and derivatives but will allow thousands of participants in the market to do a whole manner of things. The ASX sees itself not only as the nation’s securities exchange but as critical infrastructure – a trusted network and provider of secure connectivity.
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