The Australian subsidiary of market operator Chi-X encouraged the Australian Competition and Consumer Protection Commission (ACCC) to investigate the possible impact of blockchain on exchange activities.
As reported
Reuters, Chi-X Australia Stock Exchange Concerned That New Blockchain System Under Development
The Australian Securities Exchange (ASX), the only rival to Chi-X Australia, could give an organization an unfair advantage. ASX has been working on the replacement of the existing Clearing House Electronic Subregister System (CHESS) clearing and settlement system since 2017.
Chi-X General Counsel Michael Somes said the blockchain system will exacerbate existing problems:
“ASX’s clearing and settlement business is surrounded by an economic ditch … And the CHESS replacement project may make it even deeper. It would be very difficult for competitors to overcome this obstacle, and I am not saying that they are not capable of it … but the situation must be regulated in such a way as not to aggravate existing problems. ”
Somemes also suggested that there should be a legal framework allowing ACCC to intervene. In addition to being the only competitor to ASX, Chi-X Australia is also the only client to rely entirely on ASX for clearing services.
In August, ASX once again confirmed the active development of a clearing and settlement system on the blockchain. As the exchange noted, the new system “will provide increased security, stability and productivity” for the services of post-trading stock services.