Real estate shares were in the doldrums today. The property-centric sector dropped 2%, with some ASX 200 property stocks carving more than 5% off their share price amid fears of another interest rate increase.
But there was a glimmer of green among the many downtrodden property shares: PEXA Group Ltd (ASX: PXA). Shares in the electronic property conveyancing platform lifted 2% to $13.90. Although such a move wouldn't normally be worth celebrating, it's notable given the day's bleak backdrop.
The viridescent glow of PEXA coincides with the company's return from yesterday's trading halt and a fresh announcement.
Hitting pause on interoperability
This morning, PEXA acknowledged a statement released by the Australian Registrars National Electronic Conveyancing Council (ARNECC). In this release, the ARNECC revealed it was halting work on its interoperability program, with its project team being stood down.
ARNECC's interoperability program has been in development for around three years. In short, the program was an initiative to enable a more competitive industry for electronic conveyancing by making communication between all electronic lodgement network operators (ELNOs) and banks possible.
The pause in interoperability efforts was attributed to issues outside the reach of the government body, stating:
State and Territory Ministers also noted recent issues that have been raised by the banking industry in relation to the Interoperability Program, and that some of these are beyond the remit of States and Territories to address effectively.
Still, the ARNECC reiterated the desire for more competition and its benefits. However, it conceded that 'significant challenges' stand in the way of making further progress. As such, the body has called upon the Commonwealth Government and regulators to assist.
Meanwhile, PEXA said, "We continue to participate constructively with our regulators and industry participants to support and evolve an ecosystem that operates in the best interests of Australian home and property owners."
What about the competitor to this ASX 200 stock?
Sydney-based Sympli is trying to break the Australian e-settlement monopoly. Hence, the startup would be a major beneficiary in a more open and interoperable digital conveyancing market.
So, it comes as no surprise the competitor had a few remarks of its own today.
Sympli responded to the ARNECC release by saying:
Sympli confirms that we are, and have always been, committed to ensuring our bank processes are supported in interoperability, but we remain extremely disappointed that this same commitment does not appear to be shared by the industry incumbent. Unfounded claims of intellectual property rights over what have been decades-established industry practices are blocking the finalisation of data standards required to deliver the reform – this must be stopped.
The company is calling on further work to make interoperability possible.
PEXA Group, the ASX 200 stock, is up 5.06% over the past year.
