CHESS Registration Details

Registration of new holdings, transfers and conversions can be made through the CHESS or Issuer Subregister. The requirements for registering Chess or Issuer holdings differ and are outlined below.

CHESS Subregister

The ASTC Settlement Rules state that to establish a holder record the controlling participant must transmit a valid message to ASTC that specifies, in addition to other items, the current registration details for a holder in accordance with the standards specified by ASTC.

No complete validation of these details is carried out by CHESS therefore, it is necessary for all new CHESS subregister holding name and address details to be carefully checked by the registry to ensure compliance with the CHESS and SRA standards.

If the registration details of a CHESS subregister holding do not comply with the specified standards it may be appropriate for the registry to complete a "REQUEST FOR CLARIFICATION OF REGISTRATION DETAILS" form, or alternatively contact directly the relevant controlling participant and instruct them to modify the registration details.

Refer to Form 3 "REQUEST FOR CLARIFICATION OF REGISTRATION DETAILS" and to ASTC Settlement Rules requiring reply from participants within 48 hours.

If changes are agreed, the controlling participant will subsequently transmit details of the change to all companies for which that holder has a current balance.

Registries should follow up all changes requested in this manner to ensure that the holding details are correctly amended.

Issuer Sponsored Subregisters

Transmission of registration details through the CHESS subregister to the Issuer subregistry are not validated by the CHESS subregister. Therefore, it is necessary for all name and address details of new holdings created by participants to be carefully checked by the registry to ensure compliance with CHESS and SRA standards.

Registration of transactions can by processed by both the broker and non-broker participants but with different procedures, as required by the registries, for each type of controlling participant.

(a) Broker Participants

Transfers or conversions of holdings by a broker or non broker participant to an issuer sponsored subregister are transmitted electronically through CHESS to the registry computer system where they are applied to an existing holding if the name and address details are identical and if a valid SRN is quoted.

Some registry computer systems provide for items which cannot be automatically applied to be stored or suspended in a computer "pending" file. This allows the registry to progressively access this file during the day and process these "pending" items before the end of each day.

Items are usually processed by vetting the name and address registration details transmitted through CHESS with the existing holder details. If an existing holder is located with only minor differences, then the entry can be accepted into this holding via a screen instruction. Minor cosmetic changes to registration details advised through CHESS can be effected by the registry when establishing a new holding. When processing these "pending" items each registry should ensure that the name and address registration details comply with both CHESS and SRA standards.

Transactions may be received through CHESS until 7.00pm Sydney time or as otherwise defined in the ASTC Settlement Rules and registries should endeavour to process all transactions received on the same day.

Should a registry fail to process any "pending" items before the end of the day, some registry computer systems will automatically create new holdings for those outstanding. The registry could then be faced with possible duplicate holdings being created or unacceptable registration details being registered.

In the case of a conversion from an issuer sponsored subregister holding to a CHESS subregister holding and a registry fails to process any "pending" items before the end of the day, some registry computer systems will automatically reject back to the originating participant those "pending" conversion requests. e.g. When the registration details do not identically match.

If the registration details of Broker Participant CHESS to Issuer Sponsored subregister transactions do not comply with CHESS and SRA standards the following action should be taken by the registry.

  • Despatch a facsimile advice to the CHESS participant notifying them of the unacceptable details and advising the correct details if these can be ascertained. Details of the registry requirements to enable correction of the registration details should also be advised.
  • Hold the resultant issuer operated statement or certificate and facsimile to ensure that the required Registration Correction Indemnity - Brokers form is promptly received, which under the ASTC Settlement Rules is within 2 business days.
  • Upon receipt of the required Registration Correction Indemnity - Brokers form from the participant, the registry should amend the details on the holding as requested, provided the new details are acceptable.
  • Care should be exercised at the time of a "record date" to ensure correction is effected before any corporate actions items are despatched.

Refer to : Form 4 "REGISTRATION CORRECTION INDEMNITY - BROKERS"

(b) Non-Broker Participants

All supporting documentation of Issuer Sponsored or Certificated to CHESS transfers which have been electronically processed through CHESS by Non-Broker Participants must be forwarded to the registry for verification and validation of the securityholder/s authorisation within three business days of the originating transaction message date. The registry should check the transfer details and any certificates (if applicable) to ensure that the transaction is in order.

Refer to : Form 15 "TRANSFER REQUEST FORM"

If the documents are in order the registry can access the details inputed by the non-broker participant and processed through CHESS by entering the CHESS transaction number marked on the relevant documentation.

If the information input is correct and the documents are in order, the acceptance of the transaction is processed via a screen instruction and the details are listed on registry reports for subsequent audit.

Rejected incorrect items should be immediately returned by the registry to the lodging party.

The non-broker participant will receive an electronic rejection message through CHESS for any rejected items.

Any rejection of these non-broker participant issuer sponsored subregister transfers will require a completely new CHESS message to be processed by the participant, if they are to be resubmitted, and each will then have a new CHESS transaction number.

Any message not accepted or rejected within three business days from the date of input will automatically be rejected by the registry computer system without any action from the registry.

Therefore, careful control should be exercised by registries to avoid this situation.

Examples of acceptable name and address registration details are outlined in the section: "Acceptable Registration Details"

Continue reading - Acceptable Registration Details