7 December 2017
ASX announced that it had selected technology from Digital Asset Holding (DAH) to replace CHESS. The system will operate using distributed ledger technology (DLT) and will also support ISO 20022, the global standard for financial settlements messaging.
ASX is aiming to publish a Consultation paper in March 2018 outlining the proposed day 1 scope for the new system. GBST will be working with our clients to consider and respond to the Consultation and ensure that the Day 1 system migration plan is realistic whilst delivering technology and operational benefits for our clients.
GBST is well placed to assist our clients on this journey and consolidate our position as the predominant vendor of cash equities systems in Australia. GBST was the first vendor accredited for CHESS when it was introduced 23 years ago and approximately 60% of ASX trade volume is now processed using GBST systems.
GBST has been actively exploring DLT, developing proofs of concept using three different DLT technologies and integrating them with our back-office systems. In May 2016, we published an industry white-paper ‘Four Scenarios for Blockchain in Capital Markets’ which looked at the feasibility and possible benefits from the introduction of Blockchain/DLT in re-shaping capital markets.
Our Syn~ technology is already live with ISO 20022 settlements messaging in the Singapore market and we are an active participant in the ASX Technical Committee meetings where the design of the new messages is being agreed. As such we come well-prepared to ensure that our products reflect best practice and meet the needs of our clients.
As an established vendor to the Australian cash equities market GBST regularly contributes to industry discourse and change through the publication of industry papers and consultation responses. We look forward to working with our clients, registries and the ASX in helping to shape this important initiative.
GBST is a specialist financial technology company which provides administration and transaction processing solutions for retail wealth management organisations and global and regional investment banks. GBST’s software platforms support more than 7,000 investment options on a single wealth administration platform and connect capital markets in Australasia, Asia, Europe and North America.
GBST Head of Asia Pacific
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