ASX is working with Swift to implement a global messaging standard for the exchange’s post-trade equities clearing and settlement services.

Using ISO 20022 - the de facto messaging format for securities market infrastructures - is set to help customers reduce their costs of connecting to and operating in the Australian equity market.

T2S in Europe, SGX in Singapore, JASDEC in Japan and DTCC in the US already use ISO 20022.

As part of the engagement, Swift will undertake an analysis of ASX's existing 500+ proprietary CHESS messages in order to assess compatibility with the global standard.

CHESS is ASX's post-trade system for the equities market.

ASX is expected to make a decision on the technology it will use to replace CHESS towards the end of 2017.

Philippe Dirckx, Swift's managing director for Asia Pacific, said: "ASX will join the domestic fund industry in applying global best practice in messaging standards, helping to cement ISO 20022 as the financial messaging standard of choice in Australia.

Timothy Hogben, ASX’s group executive operations, added: "ASX is making significant investment in technology to deliver greater innovation and reduce costs for our customers in the post-trade environment. 

"ISO 20022 is widely recognised as the post-trade messaging standard of the future and it is appropriate we adopt this as the standard for the Australian marketplace."