NSX Limited, the owner and operator of the National Stock Exchange of Australia (NSXA) announced today that NSXA has completed its Trade Acceptance Service (TAS) integration to the ASX Clear system.
According to the official press release, TAS enables order entry into the trading system of NSXA through IRESS, resulting in a fully automated trading structure. The new service provides NSXA listed entities access to automated clearing and settlement.
NSX announced the commencement of automated trade registration and clearing with 10 NSXA brokers as an initial group of participants. The operator plans to expand the list in the future.
The press release also mentioned the introduction of the Digital Exchange Subregister System (DESS) as NSX advised that mirrored transactional data is being written directly to both CHESS and the DESS, managed by ClearPay.
The operator heated up the competition in the clearing and settlement services in Australia as the new system DESS allows the National Stock Exchange of Australia to keep control of its transactional and trading data through its own platform.
NSX termed DESS as an alternative to existing system CHESS is now seeking relevant government and regulatory cooperation. Recently, ASX came under criticism by the RBA because of the trading issues caused by CHESS.
NSX looks set to transform into a leading fintech as the operator is planning to deliver new products. In a chat with FortuneZ, John Karantzis, CEO of NSX, said: “I’m pleased that the NSX is now transforming into a Fintech, with a focus first on its platforms and systems. This will allow us to deliver exciting new products to the market, including digital, digitised, and fractional assets, as well as a variety of index products.
However, Australia needs structural separation of the incumbent monopolist, the ASX Limited, and its wholly-owned clearing and systems subsidiary, ASX Clear.
“ASX Clear as a Clearing and settlement facility is structurally integrated into the ageing CHESS register system. We will be calling upon the Australian Government and regulators to adopt a European style framework that allows for competition.”