Requirement of Listing
All companies listed on NSX , unless otherwise approved by the NSX, are required to be registered for CHESS
Settlement.
The settlement of transactions on the NSX occur using CHESS, or as
determined by the NSX, a Standard Paper Transfer form.
CHESS** stands for Clearing House Electronic Sub-register System and
is owned and operated by the Australian Securities Exchange Limited
subsidiary ASTC**.
The main objective of CHESS** is to reduce the amount of paperwork
and thereby speed up transaction processing, while providing added
benefits of reduced risk of incomplete or incorrect settlement and
greater ease of trading and holding shares for investors.
CHESS** reduces the amount of paperwork by providing for electronic
settlement of share transactions.
Benefits for Investors
With CHESS**, investors, stockbrokers and listed companies enjoy a
number of benefits:
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The convenience and security of maintaining shareholdings in
uncertificated form, |
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Periodic holding statements detailing individual transactions an
the holding balance for each security, |
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Reduced settlement risk because of faster, fixed period settlement
three business days after the trade date (known as T+3),
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Predictable settlement obligations for both buyers and sellers,
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Fast, efficient settlement even when share market volumes are
high, and |
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An internationally competitive share market.
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When shares are held in an uncertificated form, you do not have to
worry about the security of share certificates, reconciling holdings or
forwarding them to your stockbroker. You can provide access for the
transfer of any shares you sell by using your Holder Identification
Number (HIN) if you are on CHESS**, or Shareholder Reference Number (SRN)
if you are issuer sponsored. Both numbers control access to your
holdings and so should not be generally disclosed.
CHESS Fees
For listed companies CHESS/ASTC charge an application fee and an
annual fee as well as transaction fees. The Application and Annual
fees are outlined in Practice Note #1: Listing Fees. NSX bills
these fees as and when required by CHESS/ASTC. CHESS movement fees
are billed direct to the issuer each month in arrears.
Share Registry
To operate in CHESS** an issuer must also appoint a Share Registry
service or an NSX approved settlement facility able to complete settlement
via CHESS.
CHESS Brochure
Find out more about chess by reading the brochure:
ASX CHESS Booklet
Trademark acknowledgements:
(**) CHESS is a registered trade mark of ASX Settlement and Transfer
Corporation Pty Ltd ("ASTC").
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National Stock Exchange of Australia®