NSXA completes TAS integration

The National Stock Exchange of Australia has just completed the TAS integration process. The information was by NSX Limited which is the owner of the NSXA.

According to the system, TAS allows making trading structure fully automated and it enables order entry through IRESS.

NSX declared that it will begin automated trade registration and it will expand the list of participants in the future.

The statement also talked about the DESS (Digital Exchange Sub register System). It will allow the National Stock Exchange of Australia to keep track of its data through its own platform.

Fintech environment rapidly developing

It is no longer a surprising fact that the fintech industry is rapidly gaining a foothold in the world. Every day we witness the introduction of new innovation, which is designed to make the financial process simpler and easier to execute.

The first thing that definitely comes to our mind is the Forex industry, where the sophistication of trading platforms is essential for proper trading. For example, the debate of MT4 vs MT5 is very prevalent in the fintech industry, where both sides have their supporters and opponents. This can be applied to every system in the financial industry.

NSX is also determined to transform into a fintech and deliver new products, useful for people. John Karantzis who is the CEO of NSX noted that seeing NSX transforming into fintech is pleasing because it will allow them to introduce exciting products as well as digital and fractional assets.

However, Australia needs to be more precise to be in competition with European fintech companies.

A brief review of fintech in Australia

In 2016, Australia’s financial regulator, The Australian Securities and Investments Commission (ASIC), introduced a sandbox regime, a simplified and lighter regulatory regime for fintech businesses. The ability for fintech start-ups (today more than 800 in Australia) to develop and test new financial products and services without obstacles created by regulators in all developed countries has boosted the Australian fintech industry from $250 million in 2015 to $4 billion in 2020.

Last year, investment in the Australian fintech sector broke previous records, rising 252 percent to $2.9 billion. In 2018, Australia broke another record – the number of large investors moving here -12,000 (for comparison, this figure in the U.S. was 10,000, in Canada 4,000, and in Switzerland 3,000).

Australia leads the Asian markets in terms of investment fund assets, at $1,597 billion (compared to 1,525 in Singapore, 1,475 in Japan, 1,154 in China, and $880 billion in Hong Kong).

Australia has the fastest-growing fintech industry in the world, thanks to both ASIC’s efforts and its exceptional position as a threshold for all Asian markets, with most fintech companies from around the world opening their regional headquarters in Australia. In 2018-2020, a series of bills have been passed creating an even greater favourability regime for foreign fintech businesses intent on taking advantage of Business and Financial Regulation in Australia. Additional factors for investors outweighing the balance in Australia’s favor are the world’s best health and education systems and the lack of inheritance tax.

Australia and flow of digital technology

Not only Australia is gaining a foothold in the fintech industry, but the country is also determined to develop in technology. The Australian government intends to spend about AU$800 million of budget funds to implement its “digital business plan.” The amount will be invested in a number of areas related to digital and distributed registry technologies.

Many of the country’s businesses have accelerated the adoption of digital technology amid the coronavirus pandemic, allowing them to transform their operations and continue in crisis, finding new customers or new ways of doing business, according to the website of the head of the Australian Cabinet.

The digital business plan is part of the Australian government’s extensive economic recovery plan, which aims to stimulate economic growth and job creation, and ultimately bring the country to the top digital economies and societies by 2030.

419.9 million AUD will be allocated for the implementation of the business register modernization program.

The 29.2 million AUD grant is designed to accelerate the adoption of 5G technology in the country, including commercial testing and 5G testing stands in key sectors of the economy – agriculture, mining, logistics and manufacturing.

Another 22.2 million AUD will be spent on expanding the Australian small business advisory service. Small business operators will be provided with digital solutions programs, digital readiness assessment tools, and digital director training packages.

The Cabinet will send 9.6 million AUD to support the fintech segment, which exports financial services and attracts domestic investment.

Mandatory introduction of electronic invoices to all Commonwealth government agencies by July 1, 2022, will cost Australia’s budget of 3.6 million AUD, and training workers and small and medium-sized businesses with digital skills – 2.5 million AUD.

All of these initiatives will reportedly complement the government’s investment plan to provide Australian households and businesses with superfast broadband over the next two years, amounting to 4.5 billion AUD, as well as the government’s 2020 cybersecurity strategy, which invested $1.67 billion AUD.

The implementation of the digital business plan approved by the Australian government is projected to boost the country’s GDP by 6.4 billion AUD by 2024, and about 1.5 billion AUD from this additional economic activity will flow annually to the regions of the country.

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