Settlement arrangements for Approved Listing Market Operators in respect of their CHESS eligible financial products
ASX Settlement Pty Limited (ASX Settlement) provides settlement arrangements for approved listing venues other than ASX (Approved Listing Market Operators or ALMOs) in respect of CHESS-eligible financial products listed on the markets of those ALMOs (ALMO-listed financial products).
These arrangements consist of two options:
- A Transfer Facilitation Service where CHESS-eligible ALMO listed financial products can be transferred in real time by ASX Settlement Participants through CHESS. Payment is handled bi-laterally by participants outside of CHESS; or
- A DvP Facilitation Service where CHESS-eligible ALMO listed financial products can be settled on a delivery versus payment (DvP) basis by ASX Settlement Participants through the CHESS settlement batch.
In addition to the above settlement solutions for their markets, ASX Settlement has put in place arrangements for ALMO-listed Issuers to use the ASX Primary Market Facility (PMF). The PMF enables ALMO-listed Issuers to use DvP settlement for certain capital raisings.
Users of Settlement Arrangements
ASX Settlement has approved each of the following listing market operators as an “Approved Market Operator” under the ASX Settlement Operating Rules in relation to the Transfer Facilitation Service, the DVP Facilitation Service and the ASX Primary Market Facility:
- Asia Pacific Exchange Limited (APX);
- National Stock Exchange of Australia Limited (NSX); and
- SIM Venture Securities Exchange Limited (SIM)
Overview of the DvP Facilitation Service
The DvP Facilitation Service enables transactions in CHESS-eligible financial products listed on ALMOs to be settled in the CHESS daily settlement batch alongside other CHESS-eligible financial products between ASX Settlement Participants. This occurs through the submission of dual-entry settlement instructions by ASX Settlement Participants in CHESS. Once these instructions are submitted and matched, they are scheduled for settlement in the daily CHESS batch where the financial products and cash movements are irrevocably transferred DvP. These ALMO transactions are not cleared. ALMO listed securities are set up in CHESS by ASX. The set up process includes the creation of Issuer records and CHESS subregisters and establishing the link in CHESS with the Issuer’s share registry.
Settlement Facilitation Service: contractual framework
ASX Settlement makes the Transfer Facilitation Service and the DvP Facilitation Service to ALMOs on a fair and non-discriminatory basis under a Settlement Facilitation Service Agreement. An initial application fee, annual fees and other fees apply to each Service. An ALMO which takes up the DvP Facilitation Service will inherit the functionality of the Transfer Facilitation Service, i.e. the submission of demand-transfer settlement instructions by ASX Settlement Participants in CHESS.
Fees are also payable for the set-up and maintenance of securities and subregisters in CHESS along with other fees that are equivalent to current CHESS Issuer fees (PDF 72KB). The fees payable by Settlement Participants for effecting demand-transfers (Transfer Facilitation Service) or dual entry settlement instructions (DvP Facilitation Service) of financial products in CHESS reflect those payable in relation to financial products that are ASX listed.
An ALMO that seeks approval under the ASX Settlement Operating Rules to acquire either Service must meet minimum technical and operational standards. Those standards are set out in the ASX Settlement Operating Rules.
DvP Settlement of capital raisings by ALMO-listed issuers
ASX also offers ALMO-listed Issuers the capability to use the ASX Primary Market Facility (PMF). The PMF enables ALMO-listed Issuers to use DvP settlement for certain capital raisings. ALMO-listed Issuers must apply to ASX Settlement to use the PMF for capital raisings. The application process, procedures and fees that apply to use of the PMF by ALMO-listed Issuers is available (PDF 313KB). The fees payable for using the PMF reflect those payable in relation to ASX-listed financial products
ASX seeks to engage, in a fair and equitable way and on a non-discriminatory basis, with all Australian listing market operators which have an interest in settlement arrangements. If you have an interest in being provided settlement arrangements as a listing market operator, please contact Karen Webb, Manager, Settlement Services on 02 9227 0445 or Karen.Webb@asx.com.au
Further information on settlement arrangements for ALMOs is available below.
DvP Settlement Arrangements for ALMO-listed market transactions
Released 28 May 2012
- Participant Bulletin: Commencement Date for NSX/SIMVSE of DVP Settlement Faciliation Service in Respect of their CHESS-eligible Listed Financial Products (PDF 65KB)
Released 28 December 2011
- Participant Bulletin: Rule and Procedure Amendments relating to DvP Settlement arrangements for AMOs in respect of their CHESS-eligible listed financial products (PDF 71KB)
- Participant Bulletin: Attachment (PDF 92KB)
Released 1 December 2011
- Update on DvP Settlement Arrangements for Approved Market Operators in respect of their CHESS-eligible listed financial products (PDF 52KB)
Released 28 October 2011
- Informally lodged Rule Amendments relating to DvP Settlement arrangements for AMOs in respect of their CHESS-eligible listed financial products (PDF 92KB)
Released 7 October 2011
- CHESS arrangements for approved market operators in respect of CHESS eligible non ASX listed financial product (PDF 45KB)
DvP settlement of capital raisings by ALMO-listed issuers
- PMF arrangements with AMO-listed Issuers (PDF 313KB)
- Transfer Service fee schedule (PDF 72KB)