March 4 (Reuters) - The London Stock Exchange Group said on Wednesday that it would help upgrade Australian exchange operator ASX's derivatives market trading platform as part of a partnership deal.
LSEG to help upgrade Australian bourse operator ASX's derivatives trading platform
London Stock Exchange Group Partners with ASX for Derivatives Platform Upgrade
By Roshan Thomas and Nikita Maria Jino
Overview of the Partnership Deal
March 4 (Reuters) - The London Stock Exchange Group said on Wednesday that it would help upgrade Australian exchange operator ASX's derivatives market trading platform as part of a partnership deal.
Details of the Upgrade
Under the deal, LSEG will provide a high-performance, low-latency system for ASX 24, which offers trading in Australian and New Zealand equity, commodity and interest rate derivatives, including futures and options.
Expected Benefits for ASX
The upgrade would enable the Australian exchange operator to expand ASX 24's product offerings and respond to increasing sophistication in global derivatives trading, LSEG said.
Challenges Facing ASX
Issues with Existing Settlement Systems
ASX's ageing settlement systems have been blamed for several trading outages, and the bourse operator has drawn criticism from the Australian Securities and Investments Commission and the Reserve Bank of Australia.
Transition to Advanced Technology
A new clearing system will run on more advanced technology, replacing the three-decade-old Clearing House Electronic Subregister System (CHESS).
Market and Regulatory Reactions
"With the CHESS failure still casting a long shadow and regulatory scrutiny ongoing, confidence won't be restored by announcements alone," said Marc Jocum, senior product and investment strategist at Global X ETFs.
"With a target go-live of first half of 2028, the market will be monitoring every milestone across the 2026 and 2027 design, testing and migration timeline closely."
Additional Information
Reuters is a news provider for LSEG's Workspace terminal and other products.
(Reporting by Roshan Thomas and Prerna Bedi in Bengaluru; Editing by Anil D'Silva)
