The Australian subsidiary of market operator Chi-X called on the Australian Competition and Consumer Commission to investigate the possible effects of blockchain tech on trading activities.
Reuters reported on Oct. 30 that stock exchange Chi-X Australia is concerned that a new blockchain system implemented by the Australian Securities Exchange - Chi-X Australia's sole competitor - could present an unfair advantage.
ASX will replace its Clearing House Electronic Subregister System with a new blockchain platform for its registry, clearing and settlement activities.
"There's a substantial moat around the ASX clearing and settlement business And the CHESS replacement project is perhaps making it bigger. It would be very difficult for the competition to bridge that moat - I'm not saying it won't happen... but it needs to be regulated as if it won't."
Somes further suggested that there should be a legislative framework allowing the ACCC to intervene.
In addition to being ASX's sole competitor, Chi-X Australia is also its only client, relying entirely on ASX for clearing services, according to Reuters.
Stock exchanges globally have been applying blockchain technology to various parts of their business activities for the past few years.
ASX, for its part, first announced plans to replace CHESS with a blockchain-based platform in 2017.In July of last year, the Shanghai Stock Exchange - the world's fourth-largest stock exchange - released plans to use distributed ledger technology in securities transactions.
In May 2019, CEO of the London Stock Exchange Nikhil Rathi said that blockchain technology could have widespread application in issuing securities and settlement.
In a maximalist take on blockchain's application in securities trading, Thomas Zeeb of Swiss leading stock exchange SIX said last year that digital exchanges based on blockchain tech will eventually replace traditional ones.
Australian Stock Exchange Wants Oversight of Blockchain Trading System
gepubliceerd op Oct 30, 2019
by Cointele | gepubliceerd op Coinage
Coinage
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.