NSX supports two settlement options
- CHESS -Settlement via Delivery versus Payment (DvP) on a T+2 basis
- Certificated Securities - settlement via paperwork on a T+5 basis
CHESS registered Securities
The settlement of transactions on NSX occur Delivery versus Payment (DvP) using the Clearing House Electronic Sub-register System (CHESS). CHESS is Australia’s settlement and a fully electronic securities depository system for equity and equity-related securities and DvP settlement ensures that cash and securities are exchanged irrevocably.
CHESS reduces the amount of paperwork by providing for electronic settlement of share transactions. This speeds 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.
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.
Find out more about CHESS.
Certificated Securities
NSX currently offers certificated security settlement by Participants. Certificated Settlement means that when the securities of the issuer have traded, Participants are to settle the obligations of each party by providing the share certificate of the seller to the buying participant as well as a standard share transfer form. Both documents must be presented to the issuer's share registry for registration of beneficial holder details.
Refer to procedures document for Participants trading certificated securities. The authroised Participants for conducting to settle certificated securities can be found on the broker directory page.
Settlements of Certificated Securities are on a T+5 basis.