CHESS - What does it mean and stand for relating to investing and the stock market?

Question

Is it a governing body or organisation, is it a form of insured cover for traders.........Is it an international thing or just Australian...........??????????????

Answer 1

CHESS and other holding statements

Listed companies now use an electronic transfer and settlement system called CHESS (Clearing House Electronic Sub-register System). You will no longer receive a paper share certificate for shares in listed companies. Instead, ownership is recorded electronically.

You can choose to have your holdings of securities registered in one of two ways. Every company listed on the Australian Securities Exchange (ASX) has its own Issuer Sponsored Sub-register for the registration of shares in that company alone. The Issuer Sponsored Sub-register is usually operated by a share registry service. For each of the listed companies in which you hold shares on an Issuer Sponsored Sub-register you will be given a Securityholder Reference Number (SRN), which identifies your registration for that company.

Alternatively, you can elect to have your shares in an ASX-listed company registered on the CHESS Sub-register. To register your shares on the CHESS Sub-register, you must first enter into an agreement (known as a sponsorship agreement) with a CHESS sponsor (typically a stockbroker) who will open a CHESS account in your name. You can have more than one CHESS sponsor. You will be given a Holder Identification Number (HIN), which identifies your registration on the CHESS Sub-register. One HIN can cover CHESS holdings in more than one company.

You will receive a CHESS holding statement soon after the end of the month if your balance in particular shares on the CHESS Sub-register has changed during that month. The CHESS holding statement will include details of all transactions, including the dates of the transactions, type of transaction and your holding balance. Similarly, if you buy or sell shares that are registered on an Issuer Sponsored Sub-register, you should receive a holding statement from the share registry service that operates the register.

Always keep your CHESS and other holding statements as proof of your transactions and to help keep track of your shares. Make sure you let your CHESS sponsor know if you change your address.

Answer 2

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