During the June 2013 quarter, an average of $9.03 billion settled through the settlement batch each day, split between net novated obligations of $1.51 billion (17% of the batch) and non-novated bilateral transactions of $7.52 billion (83% of the batch).
Figure 1: Batch Constitution - Novated and Non-Novated Settlement
Daily cash equity market settlement volume through CHESS averaged 50,983 settlements over the June 2013 quarter, with a daily delivery fail rate averaging just 0.33% over the same period. Refer to Figure 2.
Figure 2: Cash Equity Market Settlement Performance
Participants are required to prime their settlement accounts with securities due for delivery by 10:30am each morning (settlement cut-off). Based on the securities available for delivery CHESS calculates each participant’s funds obligations, which their payment providers settle in the Reserve Bank’s RITS system. Once funds have settled across banks’ ESA accounts, CHESS moves securities from delivering to receiving participants, at which point settlement completes - typically less than one hour from commencement of the process. On average, settlement completed at 11:24am during the June 2013 quarter. Figure 3 provides further information on settlement completion over the past two years.
Figure 3: Settlement Completion Time
As at the end of June 2013, $1.34 trillion of securities were held in CHESS across 1,814,259 holders and 10,966,965 holdings.