Benefits for investors
CHESS gives investors a secure way to hold securities. Unlike other registers, it allows you to hold securities in your own name, enabling full portability of assets without potential tax implications.
It also makes keeping track of your holdings easier by consolidating all holdings in a single account.
By using CHESS, all your holdings are consolidated under one holder identification number (HIN), whereas if you use issuer-sponsored subregisters, you receive separate security holder reference numbers (SRNs) for each company. This means CHESS makes it easier to keep track of your holdings.
Ease of administration
You only have to notify your sponsoring broker if you need to change any personal details on CHESS. If you use issuer-sponsored subregistries, you will need to contact each registry individually.
Ready to trade
Securities held on CHESS are ready to trade at any time. If you wish to trade securities in an issuer-sponsored account, your broker will need to move shares from your issuer-sponsored account onto CHESS. This may be inconvenient for frequent traders.
Standard holding statements
You will receive independent holding statements to keep track of your assets using CHESS. These are presented in a standard, easy-to-understand format. If you use issuer-sponsored subregistries, each share registry will issue their own holding statements for each security held, which may vary in appearance.