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The Australian Securities Exchange (ASX) plans to change the traditional system with a foundation-based distributed ledger network.

Information about the new system updates was included in the company’s “89-page consultation paper” and published on 27th April 2018. The document, entitled “CHESS Replacement: New Scope and Implementation Plan” refers to the deadline for switching the foundations, but also to the activities supported by DLT.

Depending on the extent of consultation feedback received, ASX expects to provide a final functional scope and implementation roadmap in late July 2018,” according to the consultation paper.

Regarding the release date, ASX will be ready to launch the new system in 2020 or early 2021. However, until then, the stock exchange aims to collect feedback on distributed ledger based option from partners, investors, and other involved parties.

The new system is currently estimated to commence operation somewhere between Q4 2020 and Q1 2021. The timing of implementation is subject to change following this consultation process, delivery planning that is currently underway, and throughout the lifecycle of the project as the platform is developed. ASX will provide stakeholders with a further update in late July 2018 following this consultation process, as well as regular updates on any changes on an ongoing basis,” the firm wrote in the executive summary.

The Australian Securities Exchange has begun testing the distributed ledger technology since 2015. The company claimed it would become the first exchange of its kind using a system based on DLT, thanks to its collaboration with JPMorgan’s startup Digital Asset.

The process of considering the options to replace CHESS commenced in 2015. This has culminated in the draft plan outlined in this paper – which is to implement the replacement system based on Digital Asset’s (DA) distributed ledger technology (DLT).

According to CLS Group CEO David Puth, speaking during the Synchronize Conference in NYC this month, ASX’s move is “going to establish standards by itself by providing an example for enterprise blockchain implementations across the sector.”

Being on the same stage with Puth, ASX‘s CEO Peter Hiom argued that embracing a DLT network would support “demystifying” the tech ecosystem in other industries.

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