CHESS
CHESS (Clearing House Electronic Subregister System) is the system the ASX uses to record share ownership.
Quick reference:
Purpose: Records who owns which shares. Holder ID: Each investor gets an identification number.
Benefit: Proves legal ownership of shares.
Expanded explanation:
When you buy shares through a CHESS sponsored broker, your name is recorded directly in the ASX system under the Holder Identification Number (HIN). This means the shares are legally yours, not held by the broker.
CHESS is one of the reasons the Australian market is considered safe and transparent. Investors can be confident that their holdings are correctly recorded, dividends are paid to them, and voting rights apply.
Related links + Articles:
• Broker.