Market participants were irate when the Australian Securities Exchange (ASX) decided to "pause" the rebuilding of its entire trading, settlement, and clearing software based on decentralised computing in November.
The operator of Australia's stock exchange has chosen against utilising blockchain technology to rebuild its software platform, which is a huge rejection of the once-celebrated idea that rose to popularity through its affiliation with cryptocurrencies.
When the Australian Securities Exchange (ASX) chose to "pause" the rebuild of its complete trading, settlement, and clearing software based on decentralised computing in November, it angered market players. After seven years of development, it was determined by an outside evaluation that extensive rework was required.
The owner of Australia's stock exchange has decided not to rebuild its software platform using blockchain technology, which is a significant rejection of the once-celebrated concept that gained notoriety through its association with cryptocurrencies.
Market participants were irate when the Australian Securities Exchange (ASX) decided to "pause" the rebuilding of its entire trading, settlement, and clearing software based on decentralized computing in November. An expert assessment found that after seven years of development, significant rework was necessary.
The corporation has stated that, after the first delay, it is looking into options for a new attempt to rebuild its 30-year-old software. However, it was claimed that the corporation said it will not use blockchain or any associated distributed ledger technology (DLT) during a meeting with participants on May 17.
Tim Whiteley, the exchange project director, said during the meeting when asked about the strategy for the next try that while they are considering all options, they will probably need to employ a more traditional technology in place of DLT or blockchain to accomplish the required business results.
The statement denotes the end of a project whose goal was to demonstrate one of the most prominent applications of a concept intended to speed up online transactions through safe processing across many locations.
In a joint venture with the New York-based contractor Digital Asset, which is delivering the technology, ASX was expected to be the first securities exchange in the world to implement blockchain technology in the running of its core services. After engaging Digital Asset to update its software in 2016, ASX purchased a tiny share in that company.
Whiteley stated that ASX was moving closer to completing a new strategy before the end of the year during the meeting. He added that the business had sent a request for information to possible software providers and that it had also sent a request for proposal (RFP) to companies who had shown a greater level of interest in providing a more thorough response.
Market participants have informed ASX that they would prefer a less hazardous strategy over an abrupt switch to new software on a single day. Whiteley recognised that the strategy for execution had taken this feedback into account.
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