ASX Head Says New DLT System Could Save Billions

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The Australian Securities Exchange could save as much as $23 billion in its effort to replace its settlement system with a distributed ledger, its CEO announced Thursday. Dominic Stevens, managing director and CEO of ASX Limited – the exchange’s operator – explained how using distributed ledger technology (DLT) in place of its existing Clearing House Electronic Subregister System (CHESS), would offer greater efficiency than CHESS does in transmitting messages and accessing information. At present equity clearing and settlement costs the industry roughly $100 million alone, and the total cost of all communications and other issues to the “super industry” is closer to $23 billion, Stevens said. Moving to DLT “will provide tremendous value by being a great business enabler for our customers, and a significant enabler of innovation for issuers and investors.” “All day every day, participants send messages back and forth to the CHESS database to make sure they are perfectly reconciled with