NSX and ASX Settlement CHESS** Service
NSX has established a Transfer Service agreement between NSX and ASX
CHESS. This agreement recognises the NSX as an Australian Market
Operator pursuant to ASX Settlement Operating Rue 4.1A and allows NSX to
be a recipient of the Transfer Service provided by ASX. This
also means that NSX is a Recognised Market Operator under ASX Settlement
Operating Rules and as such complies with the conditions set out in ASX
Settlement Rule 4.3.13.
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** in
electronic settlement form, 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 ASX Settlement.
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** charge an application fee, an
annual fee as well as transaction fees on holding movements. The Application and Annual
fees are outlined in Practice Note #1: Listing Fees. CHESS** fees
are billed direct to the issuer each month in arrears. NSX charges issuers a fee for NSX's participation in the Transfer Facility.
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 the CHESS** service.
ASX Settlement CHESS Primary Market Facility (optional)
For issuers wishing to raise capital either via placement or initial public offering then they can use the Delivery versus Payment (DvP) services of the Primary Market Facility (PMF). Using DvP for settlement of placements and IPO book builds can be an efficient way for issuers to have their securities settled
at the same time that payment is made. The service utilises the ASX Settlement's batch process and operates in an industry standard way. Application is made direct to ASX Settlement. Further information
is outlined in Practice Note #17: Primary Market Facility. ASX PMF fees
are billed direct to the issuer on application. NSX does not charge issuers for access to the PMF.
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 Pty Ltd ("ASX Settlement").
