Nasdaq Selected to Support ASX in Post-Trade Technology Overhaul
- ASX to replace equities and equity options clearing platforms with Genium INET
- Nasdaq to build CCP clearing capability
- ASX’s clearinghouses now managing real-time risk with Nasdaq’s post-trade risk technology
Nasdaq (Nasdaq: NDAQ) and Australian Securities Exchange (ASX) have announced that Nasdaq will replace ASX’s existing equities and equity options clearing technology platforms – a significant element of ASX’s technology transformation program outlined in February 2015. This technology development will be undertaken on Nasdaq’s Genium INET Clearing platform, which is already in use at ASX for futures clearing. It reflects ASX’s commitment to consolidate its number of post-trade platforms and improve efficiencies for its customers.
ASX also recently went live with Sentinel Risk Manager, Nasdaq’s post-trade risk management solution. Phase 1 – the default management component – is now in operation. Once fully implemented, the new next generation platform will provide ASX with a single, real-time risk management system across both its clearing houses and all asset classes, including real-time margin calculation and related customer risk analytics.
“We are thrilled that ASX has chosen Nasdaq for these very essential post-trade developments,” said Lars Ottersgård, Executive Vice President, Market Technology, Nasdaq. “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, said: “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.”
Nasdaq has provided technology to ASX since 1996. In addition to ASX, its exchange technology, including trading, clearing, CSD and market surveillance systems, is in operation in over 100 marketplaces across the USA, Europe, Asia, Australia, Africa and the Middle East.