The Hong Kong Stock Exchange will work on the blockchain

The Hong Kong Stock Exchange (HKEX) intends to follow the example of the Australian counterpart in the development of a settlement system for the blockchain . According to the Financial Times, HKEX CEO Charles Li said on Tuesday that the company is currently engaged in a dialogue with the Australian Stock Exchange (ASX) in order to adopt its experience in creating a clearing and settlement system on the blockchain.

According to Lee, the ultimate goal is to use a platform on the blockchainr to calculate the borrowing of securities and lending, as well as OTC transactions at a significantly reduced cost, when compared with traditional methods.

While the stock exchange previously announced an initiative to create a private market based on a blockchain to finance small businesses, Lee said that technology suppliers could not provide sufficient support and HKEX is not interested in developing this direction. Nevertheless, Lee hopes to continue developing blockchain initiatives within the exchange, following the example of technological achievements and relations with partners that ASX has established.

"Let's use this cheap technology to create something that does not affect the central order book," he said.

ASX announced in December last year plans to implement a technology developed by the Digital Asset Holdings blockchain-start-up, which will replace the currently used Clearing House Electronic Subregister System (CHESS). Thus, ASX became the first stock exchange, which planned to transfer its main operations to the system based on blockchain.