Settlement of Transactions on the NSX
The settlement of transactions on NSX occur using CHESS.
CHESS stands for Clearing House Electronic Sub-register System.
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. With CHESS, investors,
stockbrokers and listed companies enjoy a number of benefits:
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The convenience and security of maintaining shareholdings in
un-certificated 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 un-certificated 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 Brochure
Find out more about chess by reading the brochure:
ASX CHESS Booklet
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