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CHESS Depositary Nominees Pty Limited and CHESS Depositary Interests

CHESS Depositary Nominees Pty Limited (CDN) and CHESS Depositary Interests (CDIs) enable international companies to access Australian markets and allow investors to trade foreign securities under Australian settlement practices. 

 

What is CDN?

CDN is a wholly owned subsidiary company of ASX Limited that was created to fulfil the functions of a Depositary Nominee as described in section 13 (Depositary Interests in CHESS) of the ASX Settlement Operating Rules. 

CDN can be appointed by a listed or quoted CDI issuer to hold legal title to financial products on behalf of CDI holders for their benefit. 

CDN is authorised by its Australian Financial Services Licence to operate custodial and depositary services, other than investor directed portfolio services, to wholesale and retail clients.

 

What are CDIs?

A CDI represents beneficial ownership in an underlying financial product quoted on an Australian market. CDIs allow electronic settlement through CHESS when the underlying product cannot itself be directly settled in CHESS. 

CDI holders have beneficial ownership of the underlying financial product, while legal title remains with a nominee company (such as CDN) appointed by the issuer.

 

Key benefits of CDI structure

Access to Australia’s deep investment pools

International companies can gain exposure to Australia’s large and diverse investor base, improving liquidity and attracting long-term capital.

Access to global investments

CDIs enable investor access to international companies listed in Australia, with trading and settlement under Australian market practices.

Simplified ownership for Australian investors

Investors can trade CDIs through their sponsoring broker without dealing directly with foreign brokers or foreign share registries.

Efficient Corporate Action management

Corporate Actions are managed seamlessly through an Australian share registry and cash payments are usually made in Australian dollars even though the source dividend may be in a foreign currency.

For CDI investors

For more information about CDIs, please refer to Financial Services Guide: Understanding Chess Depositary Interests (last updated: [date])

 

For CDI issuers

CDI issuers must appoint a Depositary Nominee, and confirm details with ASX Settlement prior to admission to quotation on an Australian market. 

For further guidance, please refer to the following documents:

  • ASX Settlement Operating Rules: Section 13
  • ASX-listed entities: ASX Listing Rules Chapter 1, Chapter 2, Chapter 8 and Guidance Note 5
  • Entities listed on Australian markets other than ASX: refer to the relevant market operator.
  • CDN Schedule of Fees (effective date TBC): If a CDI issuer appoints CDN as its Depositary Nominee, the applicable fees are outlined in this schedule.

For queries regarding ASX Settlement requirements or how to appoint CDN, please contact: CHESShelp@asx.com.au.

 

Customer feedback

To lodge a complaint, suggestion or compliment with ASX about CDN or CDIs, please complete our customer feedback form and select Platforms, Products, Processes and Services, followed by Issuer Services. From there, please choose from I want to provide feedback about CHESS Depositary Nominees (CDN) or I want to provide feedback about CHESS Depositary Interests (CDIs).