CHESS - Settlement of Trades

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:

	The convenience and security of maintaining shareholdings in uncertificated form,
	Periodic holding statements detailing individual transactions an the holding balance for each security,
	Reduced settlement risk because of faster, fixed period settlement three business days after the trade date (known as T+3),
	Predictable settlement obligations for both buyers and sellers,
	Fast, efficient settlement even when share market volumes are high, and
	An internationally competitive share market.

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").