PEXA Group Limited

ASX:PXA

PEXA Group Limited

ASX:PXA
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$14.46 (+1.6%)
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#545
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3
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Reports (1) My Report Forum Investors
Forum Topics PXA PXA Interoperability

Pinned straw:
Arizona
Added one year ago

Forgive me if this has been covered here previously.

For some time there has been a push to encourage those operating in the electronic conveyancing lodgement arena to get together and make sure their systems can interact in what I understand might be similar to how the banks work together, when their customers transfer funds. This is referred to as "interoperability".

The Australian Registrars’ National Electronic Conveyancing Council (ARNECC) has been charged with this task. They have conducted test runs and were due to roll out in QLD & NSW. My reading of this is that the implementation of this interoperability was designed to encourage competition in the market. Giving other Electronic lodgement network operators (ELNOs), companies like Sympli and Lextech Pty Ltd, a greater opportunity to participate alongside Pexa.

Then on 26 June 2024 in an ann. to the ASX Pexa advise:

"ARNECC advised industry that the interoperability program has been paused, and they are in the

process of standing down their project team."

This reads to me as: The powers that be, are throwing out the interoperability plans and Pexa's near monopoly status remains intact. Competition will not be fostered, at least using this mechanism.

For those who have been following PXA is that a fair assessment of the situation?
lowway
Added one year ago

@Arizona that sounds like a fair assessment to me. The quasi-monopoly on electronic near real-time settlements in Oz remains the domain of PEXA for now. They will be getting harder to bump off the perch the longer it takes for interoperability committees to meet and agree on a way forward. They still need to crack the UK market to see some blue sky though!!

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Chagsy
Added one year ago

Likewise @lowway - It has de-risked the Australian monopoly but whether they are throwing money away in the UK, which should just be returned to shareholders, remains to be seen.

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Arizona
Added one year ago

Oh thanks @lowway

I appreciate that. Two heads are better than one etc.

If I understand correctly the " interoperability committees" won't be meeting at all, because they have been disbanded.

My reading is there will be no interoperability mandate, thus competition will struggle. I could be missing plenty though.

6
lowway
Added 4 months ago

Interesting snippet in $PXA dispatches this week @Arizona& @Chagsy regarding interoperability costs and the dormant nature of the project since last year

From updared guidance notice

Interoperability intangible software (approx. $14m): since the Interoperability Program (“Program”) was paused by ARNECC in June 2024, the interoperability asset sat idle for 12 months, leading to parts of the Interoperability software to become outdated technology. Further, the remaining uncertainty around the next steps in the Program means this asset no longer meets the accounting criteria required to continue to hold this asset on the balance sheet. PEXA will seek to recover interoperability costs and continue to engage constructively with regulators on the Program, noting that any recommencement of the Program will require additional investment and product development.

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