The Sydney Stock Exchange (SSX) has successfully prototyped its open blockchain ledger for real-time issuance and allocation of equity security, within a month after confirming the project.
Following its mid-September confirmation that it is pressing ahead to build an open, public blockchain platform that will reduce settlement times of trades and equities, the Sydney Stock Exchange has now tested its prototype blockchain ledger successfully.
The announcement came via the APX Settlement Private Limited (APXS), a joint venture between the SSX and blockchain consultant Bit Trade Labs to develop the public ledger.
The APXS underlined its preference for an open blockchain platform, unlike the approach taken by competitor ASX – the Australian Securities Exchange.
Loretta Joseph, SSX director of market development has previously stated:
The banks [and the ASX] are effectively trying to build an intranet. If we put a control around who would come into [the internet] and who can’t, we wouldn’t have the internet today.
Opting for a collaborative approach with other participants from the industry, the APXS also sees its public blockchain solution leverage beyond the securities market to scale the commodities market. Such an effort, it says, would help government and other participating industries to change markets that are weighed down by antiquated technologies.
APXS CEO David Lawrence revealed the scope of the public blockchain endeavour. In a statement, he said:
We are working with government, regulators, the Australian Digital Currency and Commerce Association (ADCCA) and our expanding group of industry partners to deliver innovative solutions using new technologies.
Following the successful testing of its prototype, the joint venture is now determining the required infrastructure for the development of the blockchain solution’s production environment. Furthermore, it is collaborating with industry assurance and cybersecurity experts to ensure it matches verification requirements to avoid systemic risks.
SSX’s development of its ledger was accelerated following recent changes to Australian Clearing Competition laws, that now further encourages competition in the industry. While the project was in development for over a year, the SSX first revealed its intention to implement an open blockchain solution to enable any company or trader with the innovation, in May 2016.
Featured image from iStock.