Peter is leaving to further his interest in fintech and blockchain technology. As part of this, he is joining Motive Partners, a global investment firm focused on financial services technology companies, as an Industry Partner.

ASX Managing Director and CEO, Dominic Stevens, said: “Peter has made a significant contribution to Australia’s financial markets over many years, first at SFE and then ASX, including the past 11 years as Deputy CEO.

“Peter is a strong advocate for embracing new technology to deliver innovation and efficiency across our industry. This is best exemplified by his leadership of the investigation and adoption of distributed ledger technology to underpin the replacement of CHESS.

“We thank and congratulate Peter on his service and wish him the very best,” Mr Stevens added.

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Dominic Stevens

Over 9 million Australians hold investments outside their home and super, with 6.6 million directly holding exchange-listed investments, according to the ASX Australian Investor Study 2020 released yesterday.

Dominic Stevens, ASX Managing Director and CEO, said that the 2020 study comes at a historic time as investors respond to the challenges from the COVID pandemic.

“Since 1986, the ASX Australian Investor Study has provided an authoritative guide to the evolution of our markets and changing investor behaviour,” Mr Stevens said.

“This year’s study is particularly interesting as in addition to the main study, we conducted a mini pulse survey when COVID-19 hit. It’s a unique opportunity to test the market during a crisis.”

The extreme volatility and sudden decline in asset values caused by the pandemic has had a significant impact on investors.

Twenty-two per cent of investors aged between 35 and 64 say they will delay their retirement as a result of recent market performance, and 54 per cent of investors have made changes to their portfolios over the three months prior to May 2020.

When respondents were asked about the effects of COVID on their investment priorities, sustainability of dividends (36 per cent) and diversification (31 per cent) ranked highest in order of priority.

The majority of current investors intend to make new investments in the coming year. Of those planning to invest further, 57 per cent have indicated that they will invest in Australian shares and 28 per cent in ETFs.

The finding of a rise in market activity may point to a risk, highlighted by the Australian Securities and Investments Commission recently, that some retail investors may be engaged in short-term speculation rather than long-term investment.

“However, it was pleasing to see that the study found that many investors have responded to the crisis by becoming more focused on diversification and risk management, together with the sustainability of returns,” Mr Stevens said.

“There’s a greater focus on building portfolios with long-term goals in mind.”

The study has found a measurable shift in investor demographics, with a growing number of women and younger Australians actively investing; a trend that looks set to accelerate.

Among intending investors (non-investors planning to begin within 12 months), 51 per cent are female and 27 per cent are under 25 years old.

“The next generation of investors are actively engaged and eager to learn, with many already looking to use a range of investment products beyond shares, in particular ETFs for accessible diversification,” Mr Stevens said.

“The future of Australian investing looks promising, with a greater number of younger Australians seeking to lay the foundations for their own financial security.”

Read the ASX Australian Investor Study 2020.

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Dominic Stevens

ASX has announced its intention to replace CHESS using distributed ledger technology (DLT) developed by its technology partner Digital Asset (DA).

CHESS (Clearing House Electronic Subregister System) is the system used by ASX to record shareholdings and manage the clearing and settlement of equity transactions in Australia. It was world-leading when introduced in the 1990s, providing name-on-register functionality, electronic communications and removing paper share certificates. It continues to be a robust and reliable system. ASX is now taking the opportunity to replace CHESS with a next generation post-trade platform using contemporary technology.

Today’s decision follows the successful build of enterprise-grade DLT software for core equity clearing and settlement functions, and the completion of extensive suitability testing by ASX and DA over the past two years. The testing confirms ASX’s confidence in the functional, capacity, security and resilience capabilities of DA’s application of DLT to meet the needs of Australia’s financial marketplace and maintain the highest regulatory and operational standards. The testing included two independent third party security reviews of DA’s technology.

The testing was conducted in parallel with a stakeholder consultation program, which included briefing of regulators, to enable ASX to develop a comprehensive understanding of what the market wants in replacing CHESS.

ASX will now work with stakeholders on finalising the scope of Day 1 functionality for the new system, drawing on its extensive consultation that will continue in 2018.

Day 1 functionality and the proposed timing for transition are expected to be released for market feedback at the end of March 2018. The new system will be operated by ASX on a secure private network where participants are known, ‘permissioned’ to have access, and must comply with ongoing and enforceable obligations.

The system will be designed without access barriers to non-affiliated market operators and clearing and settlement facilities. It will also give ASX’s customers choice as to how they use ASX’s post-trade services. Customers will be able to connect in a similar way they do today, with the addition of using contemporary global ISO 20022 messaging, or they may interact directly with the distributed ledger. The transition period to the new system will be determined in consultation with stakeholders.

Dominic Stevens, ASX Managing Director and CEO, said: “ASX has been carefully examining distributed ledger technology for almost two-and-a-half years, including the last two years with Digital Asset, in order to understand its potential application. Having completed this work, we believe that using DLT to replace CHESS will enable our customers to develop new services and reduce their costs, and it will put Australia at the forefront of innovation in financial markets. While we have a lot more work still to do, today’s announcement is a major milestone on that journey.”

7 December 2017 Media Release 2/2 Peter Hiom, ASX Deputy CEO, said: “ASX has consulted extensively on the needs and priorities for replacing CHESS, including with customers, share registries, software vendors, other exchanges and industry associations. I am very grateful for their input and support. We’ve given over 80 DLT system demonstrations to more than 500 attendees, and conducted over 60 CHESS replacement workshops for more than 100 organisations from the global financial services industry.

“ASX has also formed a strong partnership with Digital Asset over the past two years, and we’re confident we have chosen the right partner. Together, we look forward to continuing to work with the industry as we finalise the requirements and the roadmap for implementation of the new system.”

Blythe Masters, Digital Asset CEO, said: “After so much hype surrounding distributed ledger technology, today’s announcement delivers the first meaningful proof that the technology can live up to its potential. Together, DA and our client ASX have shown that the technology not only works, but can meet the requirements of mission critical financial infrastructure.”

Coinciding with today’s decision, ASX will exercise its pro-rata right to participate in DA’s recent Series B fundraising and subscribe for US$3.5 million convertible notes. ASX and DA have agreed to work exclusively on DLT in Australia and New Zealand. This agreement applies while the Day 1 functionality of the new system is being finalised, and will continue subject to agreement of the full contractual arrangements for the development and support of the new system. These decisions underscore ASX’s strong commitment to working with DA to unlock the benefits of DLT.

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Mr Stevens joined ASX as an independent non-executive director in December 2013. He has served on the Audit and Risk Committee, and on a number of ASX’s clearing and settlement boards. ASX’s Chairman, Mr Rick Holliday-Smith, welcomed the appointment saying: “Dom’s long involvement in financial markets, his experience as a CEO and his time as a director means the ASX Board is delighted and confident in making this appointment. He is popular and highly-regarded by ASX’s Board, staff and major stakeholders. Dom is ideally qualified to lead the company and build on ASX’s achievements.”

Mr Stevens has close to 30 years’ experience in financial markets. He was CEO of Challenger from 2008 to 2012, before which he was the company’s Deputy CEO and head of capital, risk and strategy. Prior to Challenger he held senior positions during a long career at Bankers Trust Australia. Mr Stevens has served on the ASX Board and understands the company’s strengths and challenges, and the complex global regulatory environment in which ASX operates.

Mr Dominic Stevens said: “I am excited by the opportunity and responsibility the Board has given me to lead ASX. ASX does operate at the heart of Australia’s financial markets. There is no organisation quite like it. The company is in a strong position, has an enviable reputation and is well positioned for future opportunities.

“The financial markets are dynamic and ASX will continue to adapt to the changing conditions and needs of its customers. I am looking forward to working more closely with the talented people at ASX, and taking the company’s competitiveness and strong commitments to innovation and customer service to the next level”, said Mr Stevens.

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