What is CHESS?
| CHESS stands for Clearing House Electronic Subregister System. It’s a computer system operated by the Australian Securities Exchange (ASX) that facilitates the buying and selling of shares listed on the exchange. |
There are three ways to hold shares in Australia.
One is through a broker which allocates your shares to a Holder Identification Number, or ‘HIN’, commonly referred to as “CHESS-sponsored”.
Another is through the registry of the company you own shares in, where you will hold shares on a Shareholder Reference Number or ‘SRN’.
Or, you can do so via a custodian, which is a financial institution licensed to hold assets on your behalf for safekeeping. It’s like having a guardian for your shares that is holding regulatory capital in the event of any potential financial stress, which is there to protect your investments.