The ASX’s decision to replace CHESS with a blockchain solution will benefit investors as long as all parties are granted fair access, writes Sharesight’s Doug Morris. On 7 December 2017, the ASX announced it will be replacing its settlement system, known as CHESS, with a “blockchain-inspired technology”. Those of us investment nerds with an interest in financial plumbing have been keeping a close eye on this for years.
I think this is a smart business move aimed at reducing operating costs and hopefully a step towards more efficient markets. In fact, CHESS was one of the world’s first electronic settlement systems, and the ASX has long been recognised as a leader in technology. I recall hearing about the ASX in my days at the Chicago Board of Trade (now owned by CME Group), another leader in market tech (bitcoin futures anyone?).
The rest of this article can be found at investordaily.com.au.