ASX Derivatives Clearing System Goes Live

The Australian Stock Exchange has completed the implementation of a new state-of-the-art derivatives clearing system (DCS). "Using new technology, ASX is constantly re-engineering its market capacity and flexibility," said ASX Managing Director Richard Humphry. "DCS was completed on time and under budget. It offers an open-interface with brokers; clearing participants have control of their own data bases; and the system offers the opportunity for other software suppliers to participate." He noted that the new clearing system also had the capacity to clear financial instruments other than exchange-traded options. A key feature of the new system will be its ability to clear trades in a range of currencies. "It will bring savings to brokers in terms of staffing needs and greater efficiency in processing," Mr Humphry added. The new system was developed by Sydney-based system developer Palion Pty Ltd, in conjunction with ASX. ASX converted its equity trading system from floor to screen in October 1987, then introduced electronic uncertificated share settlement in 1994. It converted the options market to screen trading in October 1997. "The successful implementation of the new derivatives clearing system, involving 42 clearing members in five States, maintains an impressive track record," Mr Humphry said.