Trade shares in Australia with Direct Broking and E*Trade CHESS
Direct Broking Limited is an active participant in the Australian market.
We strongly encourage clients buying or trading Australian shares to open an E*Trade CHESS Account.
What is CHESS?
CHESS (Clearing House Electronic Subregister System) is the Australian computer
system which transfers ASX securities between sellers and buyers and simultaneously
makes payment. In simplest terms, it is delivery versus payment.
CHESS provides a share register for ASX listed companies and is operated by the
Australian Stock Exchange.
The Australian system of registering securities differs from the New Zealand system.
In New Zealand, buyers are allocated a unique Common Shareholder Number (CSN) by
the New Zealand Exchange. The CSN is akin to a private bank account number and it
is used by all New Zealand share registries. The Australian system offers two main
choices for registration; the CHESS register which is maintained by the CHESS system
and the Issuer Sponsored register which is maintained by the company which issues
the securities, or their share registry. Together, the CHESS register and the Issuer
Sponsored register make up the principal register of shareholders for a particular
company.
What are the benefits of the CHESS system?
 |
What does it cost to establish a CHESS account? |
CHESS |
This service is free. |
| ISSUER SPONSORED |
This service is free. |
|
| What happens when I buy shares? |
CHESS |
Shares are allocated to your CHESS account immediately. |
| ISSUER SPONSORED |
Shares are registered into your name within 10-14 days. |
|
|
How are my shares registered? |
CHESS |
All shares are registered in your name under one HIN (Holder Identification Number) |
| ISSUER SPONSORED |
A separate SRN (Security holder Reference Number) is allocated to you for each company
and for each variation in registration details. It is important to consolidate multiple
SRNs as each must be sold separately incurring additional brokerage charges. |
|
|
When can I sell my shares? |
CHESS |
Immediately after purchase. |
|
ISSUER SPONSORED |
When your SRN has been sent to you, arriving via mail from Australia. |
|
| How do I go about selling? |
CHESS |
Quote your trading account number and your order will be executed immediatley -
over the telephone or online. |
| ISSUER SPONSORED |
Quote your trading account number and relevant SRN. Your order will be executed
after your holding has been validated by the share registry. After the sale, the
shares are transferred to the CHESS clearing system for settlement. Delays incur
ASX late delivery penalties. |
|
| How can I get a current statement? |
CHESS |
Contact Direct Broking for a full print out. |
| ISSUER SPONSORED |
You must contact all share registries individually. |
|
|
How do I change my registered details? |
CHESS |
Contact Direct Broking who will notify all share registries. |
|
ISSUER SPONSORED |
You must contact all share registries individually. |
How can I obtain a CHESS account through Direct Broking?
To have your shares registered on CHESS you can open a CHESS account through Direct
Broking with our CHESS agent, E*Trade Australia. The application form is included
with our trading account application pack and is available on our website
here or by
request. To be eligible for a CHESS account you must have either traded on the Australian
market through Direct Broking Limited, or already hold Australian shares or intend to
purchase Australian shares within the next three months. Your application will be
sent to Australia for approval and an account is typically opened within 10 business
days. While E*Trade Australia acts as our Australian agent, all correspondence
regarding
your CHESS account should be directed to Direct Broking Limited.
I have Issuer Sponsored shares and would like them moved to my CHESS account, what
should I do?
Just provide a list of your shareholdings including the name of the company, SRN
number and number of shares. Alternatively you can send us copies of your shareholder
statements. The conversion process takes up to five business days and you can still
trade your shares during this period.
How secure is CHESS?
Under Australian law, transactions can only be made by a CHESS sponsor on your instructions
or a company making adjustments e.g. issuing bonus shares. CHESS will independently
notify you by mail of any changes to your CHESS holdings. Unauthorised transfers
or movements are covered by the Australian National Guarantee Fund. Full details
are available on
www.segc.com.au.
You should not disclose your HIN to any other person,
in the same way that you should not disclose your bank account number, unless required
by law.
Can I deal with several CHESS sponsors?
Yes, but it is necessary to open separate CHESS accounts with each broker.
When you trade through another broker, you must advise that broker of your sponsorship
arrangements so that the shares can be transferred appropriately.
Am I locked into CHESS?
No. You may convert your holdings to Issuer Sponsored at any time by contacting
us in writing. There is no charge for this service.
DOWNLOAD AND VIEW:
>> E*Trade CHESS account application form
>> E*Trade CHESS Terms and Conditions
If you have any questions about E*Trade CHESS, please call 0800 805 777.
E*Trade Australia is a trading name of ETRADE Australia Securities Limited
("ETRADE"). ETRADE is a related company of Direct Broking Limited within the meaning
of section 2 (3) of the Companies Act 1993.
