NSX Limited, the operator of the National Stock Exchange of Australia (NSXA), has announced that they are forming a joint venture to build a system that offers digital asset trading and real-time settlements.
Dubbed ClearPay, the new venture will develop a platform based on distributed ledger technology (DLT) and provide “multicurrency, real-time and same day clearing of share trades across multiple exchanges.” To build the blockchain-based system, NSX has teamed with iSignThis (ISX), a publicly listed firm specializing in payment authentication services. The goal of the two parties is to create an open, transparent, modern and high-tech focussed alternative to Australia’s leading securities exchange ASX. The ClearPay platform is expected to go live “by early 2021.”
“With ClearPay, the NSXA will be able to offer a same-day settlement (T+0) capability which will supersede the current (T+ various days delayed for the clearing and settlement) process offered by other domestic and global exchanges,” NSX said. “Settlement by other exchanges is usually T+2 or T+3 days. On completion of ClearPay’s DvP platform, it is expected that the domestic and international broker network will expand and connect via industry-standard ISO20022 interface and participate using an industry-standard blockchain. This will provide the NSXA with one of the world’s most advanced DvP platforms, inclusive of an inbuilt sub-registry.”
John Karantzis, managing director and CEO at ISX, who will also act as CEO of ClearPay, said that the new venture will bring competition to the Australian market.
“It’s very exciting for us that the ClearPay JV will bring genuine competition to the Australian cash equities eco-system,” said Karantzis. “iSignthis brings an inherent high technology capability to the NSXA, including its extensive payments and KYC services, ISXPay and Paydentity.”
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