Trading, clearing and settlement of debt securities
Debt securities on ASX are traded, cleared and settled in the same way as equity securities.
Trading in ASX quoted debt securities is conducted between broking firms who act on behalf of their clients, in the same way as for quoted equity securities. The trading is conducted electronically via the ASX Trade platform. Settlement occurs in the Clearing House Electronic Subregister System (CHESS) where the participants are ASX brokers, specialist third party clearing organisations and approved institutions.
CHESS provides a central book entry register for transfers and holdings of approved securities. The holding balances maintained by the system are the record of legal title and form part of the issuers register. Settlement in CHESS normally occurs on a Trade date plus 2 (T+2) basis. CHESS enables investors to settle ASX interest rate securities electronically, the same way as shares thereby saving time and money. Holdings and transfers on CHESS are recognised by the Corporations Act as a valid legal title and transfer of that title.
For more information about the benefits of quoting debt on ASX, please download the booklet - "A simple guide to listing debt on ASX".