It's not about CHESS - Part 5 | FinClear & FCX - The bridge
https://finclear.com.au/
In this special series 'It's not about CHESS', FinClear CEO David Ferrall gives his insights on Australia’s unique market microstructure that will enable rapid uptake of digitised securities, which is a direct result of ASX’s decision almost 30 years ago to promote direct ownership of listed securities via the Holder Identification Number (HIN).
FinClear already works in highly regulated traditional markets. We are also using DLT to develop products that tokenise new kinds of securities, that will sit alongside current listed securities on HIN.
We see the ASX CHESS replacement as a massive opportunity to accelerate this process – but we are not dependent on it. We have already built our own distributed ledger, FCX, and have an exciting roadmap to develop this with more functionality and more asset classes.
We are building a connected, highly regulated investment world of direct securities that are all in the client’s own name, direct to register, rather than the old world of bundling all their assets into custody.
FinClear is the bridge between the old back book world and the future front book world. Using new technologies and capabilities, but coming from a highly regulated, trusted and highly capitalised position, we are uniquely placed to bridge the old world and the new.
We have already moved our own FinClear share register onto FCX, where investors will be able to see their unlisted FinClear shares; facilitate both primary and secondary liquidity events with instant settlement; and ultimately show liquidity via an exchange capability.
This will be the first platform of this type anywhere in the world.
Once delivered, and as other unlisted companies are welcomed on to FCX, investors will be able to see a consolidated view of all their listed and unlisted securities. From there, other asset classes, or even new listed securities, can be hosted on FCX. This will begin the predicted collapse of the back book into a more efficient digital, direct ecosystem. An ecosystem where other providers are welcome to connect to provide products and services for their end clients.
FCX will be a showcase for what the future of platforms should look like - and a model that we intend to expand globally.