Australia’s stock market operator ASX has abandoned plans to rebuild its software infrastructure using blockchain technology to explore more conventional options.
The Australian Securities Exchange (ASX) angered market participants in November 2022 when it decided to “pause” its decentralized computing-based trading, settlement, and clearing software reconstruction.
After seven years of development, an external evaluation determined that significant rework was required.
Following the initial pause, the company has indicated that it is investigating alternative approaches for a new attempt to rebuild its 30-year-old software.
Nonetheless, it was reported that during a meeting with participants on May 17, the company stated that it would not implement blockchain or any associated distributed ledger technology (DLT).
During the meeting, Tim Whiteley, the project director, stated in response to a question about the strategy for the next attempt that while the exchange is exploring all alternatives, it will likely need to employ more conventional technology to achieve the desired business outcomes.
The statement denotes the completion of a project that is anticipated to provide one of the most prominent illustrations of a concept designed to expedite online transactions through secure processing across multiple locations.
ASX was poised to become the first securities exchange in the world to implement blockchain technology in the operation of its core services in collaboration with New York-based contractor Digital Asset, which was supplying the technology.
After hiring Digital Asset to rebuild its software in 2016, ASX obtained a small stake in the company.
During the meeting, Whiteley informed attendees that ASX was progressing toward concluding a new strategy by year’s end.
He mentioned that the company had sent a request for information to prospective software vendors and a request for a proposal to interested parties to receive more extensive feedback.
ASX received feedback from market participants expressing their preference for a less hazardous approach, avoiding a single-day transition to new software. Whiteley acknowledged that this feedback was considered during the implementation planning procedure.
