Sydney Stock Exchange (SSX) has reached its first milestone in its blockchain project. Its joint venture with Bit Trade Labs – APX Settlement Pty Limited – has successfully prototyped its blockchain smart register for real-time issuance and allocation of equity securities.

In May 2016, SSX and Bit Trade Labs announced the establishment of a joint venture to develop a blockchain-based equities market settlement and registration system. The latest announcement marks the first step towards the objective of building an instantaneous settlement-and-transfer-upon-trade (T-based DvP) platform.

“Even at the early stages of this project we have found that taking a bold approach to development and working closely with collaborators is yielding exciting results. The scale of value and efficiencies that can be achieved through the use of a smart register promise to far exceed our initial expectations”, Jonathon Miller, Director of Bit Trade Labs, said.

APXS takes a collaborative approach with industry and market participants and said that the development has been done in collaboration with BoardRoom Pty Limited, a Sydney based share registry service. It plans to extend the smart register beyond equity securities to commodities markets, opening up opportunities for government and industry to transform markets currently hampered by antiquated structures and technology.

“We are working with government, regulators, the Australian Digital Currency and Commerce Association (ADCCA) and our expanding group of industry partners to deliver innovative solutions using new technologies”, APXS CEO David Lawrence said. “Our ongoing program of development highlights the need for a technology agnostic regulatory environment to fully maximise the value of the emerging technology and competition.”

APXS is now evaluating the appropriate infrastructure for its production environment and is working with leading industry assurance and cyber security experts to develop verification methodologies to address systemic risks.