ASX selects Nasdaq for equities tech upgrade
01 March 2016 Sydney
Image: Shutterstock
The Australian Securities Exchange (ASX) has mandated Nasdaq to replace its equities and clearing technology platforms.
The move is part of the exchange’s technology transformation programme, outlined in February last year.
Development will be undertaken on the Nasdaq Genium INET Clearing platform, which is already in use of futures clearing on ASX.
Using the same platform is reportedly part of a wider move to consolidate several post-trade platforms, intended to improve efficiency for customers. Nasdaq will also build a CCP clearing capability.
ASX has also recently gone live with Nasdaq’s post-trade risk management solution, Sentinel Risk Manager, and the default management component of this is already in operation. Once it is fully implemented, the platform should provide a risk management solution across both of ASX’s clearinghouses, and all asset classes.
Lars Ottersgård, executive vice president for market technology at Nasdaq, said: "The post-trade space is undergoing significant global change from a regulatory, operational and customer requirement perspective. Proven technology that can provide flexible and improved product and service capability is critical in meeting the constantly changing post-trade environment."
Tim Thurman, chief information officer at ASX, added: "This post-trade phase of ASX's technology refresh will enable ASX to deliver globally proven technology and significant benefits to the Australian market, including increased flexibility, reduced complexity and scale efficiencies.”
“While we have announced that ASX is exploring the potential of distributed ledger technology—or blockchain—to transform settlement processes in our market, we will continue to operate our existing post-trade services as normal. This extension of ASX's longstanding and successful partnership with Nasdaq will ensure that Australia's financial market infrastructure remains world-class and meets the needs of participants and investors."
The move is part of the exchange’s technology transformation programme, outlined in February last year.
Development will be undertaken on the Nasdaq Genium INET Clearing platform, which is already in use of futures clearing on ASX.
Using the same platform is reportedly part of a wider move to consolidate several post-trade platforms, intended to improve efficiency for customers. Nasdaq will also build a CCP clearing capability.
ASX has also recently gone live with Nasdaq’s post-trade risk management solution, Sentinel Risk Manager, and the default management component of this is already in operation. Once it is fully implemented, the platform should provide a risk management solution across both of ASX’s clearinghouses, and all asset classes.
Lars Ottersgård, executive vice president for market technology at Nasdaq, said: "The post-trade space is undergoing significant global change from a regulatory, operational and customer requirement perspective. Proven technology that can provide flexible and improved product and service capability is critical in meeting the constantly changing post-trade environment."
Tim Thurman, chief information officer at ASX, added: "This post-trade phase of ASX's technology refresh will enable ASX to deliver globally proven technology and significant benefits to the Australian market, including increased flexibility, reduced complexity and scale efficiencies.”
“While we have announced that ASX is exploring the potential of distributed ledger technology—or blockchain—to transform settlement processes in our market, we will continue to operate our existing post-trade services as normal. This extension of ASX's longstanding and successful partnership with Nasdaq will ensure that Australia's financial market infrastructure remains world-class and meets the needs of participants and investors."
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