0772.14.07.a - Client Segregation Enhancements to Chess · CHESS Release Business and Technical Overview Client Segregation Enhancements to CHESS

CHESS Release

Business and Technical Overview

Client Segregation Enhancements to CHESS

ASX Limited CHESS Release – Business and Technical Overview

© Copyright 2014 ASX Limited ABN 98 008 624 691. All rights reserved 2014. 2.

Table of Contents 1. OVERVIEW ...................................................................................................................................................... 3

1.1. BACKGROUND ........................................................................................................................................... 3 1.2. PHASE 1 ................................................................................................................................................... 3 1.3. PHASE 2 ................................................................................................................................................... 3

1.3.1. Corporate Actions – Diary Adjustments ......................................................................................... 4

2. SCOPE OF RELEASE ..................................................................................................................................... 5

2.1. IMPLEMENTATION DATE ............................................................................................................................. 5 2.2. PARTIES IMPACTED BY THIS CHANGE .......................................................................................................... 5 2.3. NEXT STEPS ............................................................................................................................................. 5 2.4. CONTACTING ASX – CLIENT SEGREGATION ENHANCEMENTS ...................................................................... 5

3. OVERVIEW OF CONTENTS FOR CLIENT SEGREGATION ENHANCEMENTS .......................................... 6

3.1. MANDATORY CHANGES FOR CLEARING PARTICIPANTS ................................................................................ 6 3.2. MANDATORY CHANGE TO PAYMENT PROVIDER MESSAGING ...................................................................... 10

4. MANDATORY CHANGES FOR PARTICIPANTS ......................................................................................... 11

4.1. DEMAND SINGLE ENTRY CHESS TO CHESS TRANSFER REQUEST [001-02] ............................................. 11 4.2. EFFECTED DEMAND SINGLE ENTRY CHESS TO CHESS TRANSFER [002–02] ........................................... 13 4.3. TRANSFEROR SUBMITTED DEMAND TRANSFER [003-02] ........................................................................... 14 4.4. DEMAND DUAL ENTRY CHESS TO CHESS TRANSFER REQUEST [005-03] ................................................ 16 4.5. ISSUER SPONSORED TO CHESS TRANSFER REQUEST [015-03] ............................................................... 18 4.6. ISSUER SPONSORED TO CHESS CONVERSION REQUEST [017-03] ........................................................... 20 4.7. DUAL ENTRY SETTLEMENT NOTIFICATION [101-02] ................................................................................... 22 4.8. SINGLE ENTRY SETTLEMENT CHESS TO CHESS TRANSFER REQUEST [105-02] ...................................... 26 4.9. SCHEDULED SINGLE ENTRY SETTLEMENT CHESS TO CHESS TRANSFER [106-01]................................... 28 4.10. SCHEDULED SETTLEMENT CHESS TO CHESS TRANSFER REQUEST [107-01] .......................................... 29 4.11. CANCELLED SETTLEMENT INSTRUCTION [116-01] ..................................................................................... 32 4.12. SINGLE ENTRY SETTLEMENT CHESS TO CHESS TRANSFER CANCELLATION REQUEST [119-01] ............ 34 4.13. NET TRUST AMOUNT MOVEMENT [186-01] ............................................................................................... 35

5. CHANGE TO PAYMENT PROVIDER MESSAGING..................................................................................... 37

5.1. PARTICIPANT FUNDS OBLIGATION [310-02] .............................................................................................. 37

6. APPENDIX 1 – RESTRICTIONS ON EXISTING TRANSFER MESSAGING ................................................ 39



1. Overview

1.1. Background

As indicated in ASX’s Consultation Paper on Financial Stability Standards Implementation released on 29 July 2013 and in ASX’s subsequent Market Feedback Statement released on 13 November 2013 (refer to the links below), ASX is required to make certain rule and process changes for the purpose of achieving materially equivalent protection of client assets to that offered through a client omnibus account for the purposes of paragraph 13.2.10 of the Financial Stability Standards for Central Counterparties. The enhancements focus on the treatment of client stock and funds during the settlement process between Trade date (T) and Settlement date (T+3) and are being introduced in two phases as defined below.

http://www.asx.com.au/documents/clearing/financial-stability-standards-implementation-consultation-paper.pdf

http://www.asx.com.au/documents/clearing/FSS_Implementation_FS.pdf

1.2. Phase 1

Phase 1 includes the introduction of rule changes to:

Confirm that stock that is held in the participants Accumulation Account is held beneficially on behalf of the underlying client.

Include a requirement for participants to reconcile their Accumulation Account on a daily basis at the client level.

Ensure that funds being held in the participants trust account can only be withdrawn once the underlying client has been allocated the respective stock to which the funds relate.

Phase 1 is now complete as advised via ASX Notice 0362.14.04 dated 16 April 2014 and these rules became effective on Monday 28 April 2014.

1.3. Phase 2

Phase 2 includes the introduction of changes to some of the Clearing House Electronic Sub-System (CHESS) messaging process flows together with changes to the relevant ASX Clear Pty Ltd (ASX Clear) and/or ASX Settlement Pty Ltd (ASX Settlement) Operating Rules.

Following feedback received from participants and vendors via the vendor participant workshop consultation process, ASX has now incorporated the following amendments to the original proposal:

Transfers between a client’s broker sponsored holding and the Accumulation Account will still be allowed. Transfers between a client’s broker sponsored holding and the Settlement Account will no longer be allowed.

Issuer Sponsored Holding transfers and conversions to the participants Settlement Account will no longer be allowed.

Movement of stock from the Accumulation Account to the Settlement Account to facilitate CHESS batch settlement will only be permitted via the new MT107 CHESS message which should include the relevant client trustable amount.

Each time a message is sent to transfer stock from the Accumulation Account, CHESS will validate that there is sufficient stock to cover all the previously sent MT107 CHESS messages (i.e. there can be no part settlement of a MT107 CHESS message between the Accumulation Account and the Settlement Account).

For transfers into the Settlement Account the new MT107 CHESS message can be scheduled for a forward Settlement Date and participants may elect to send several MT107 CHESS messages per day, per stock, or one net message per stock covering that day’s obligations. If sending a single net message the gross client trustable amount for that stock must be included in the message.

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2. Scope of Release The scope of CHESS Client Segregation enhancements are:

Enhancement Benefits

1 Introduce client segregation functionality. Inclusion of new and modified messaging to identify the trustable amount on certain sell and buy transactions.

Enhanced protection of client stock and funds in the event of a default or insolvency. Fulfilment of ASX Clear regulatory obligations regarding client account segregation.

2.1. Implementation Date

CHESS Client Segregation enhancements will be effective from mid May 2015. The exact date will be communicated closer to the time.

2.2. Parties Impacted by this Change

All Clearing and Settlement participants and Payment Providers are impacted by this change. Settlement only participants (custodians, institutions) are not affected by these changes.

2.3. Next Steps

The information in this document should be used to initiate analysis and assessment of changes required within customer systems and workflows.

To facilitate the upgrade, the CHESS External Test Environment will be made available early 2015.

All Clearing & Settlement participants and relevant CHESS system vendors are required to have their CHESS Interface (“system”) accredited for the processing of the following new messages: -

Scheduled Settlement CHESS to CHESS Transfer Request (MT107-01) message; and

Net Trust Amount Movement (MT186-01)

All Payment Providers and relevant CHESS system vendors are required to have their CHESS Interface (“system”) accredited for the processing of the modified Participant Funds Obligation (MT310-02) message.

2.4. Contacting ASX – Client Segregation Enhancements

For any information regarding Client Segregation enhancements, ASX can be contacted on:

Brendon Luscombe - General Manager, Clearing Risk Management

T: 61 2 9227 0843, E: [email protected]

Anne-Marie Fisher-Taylor - Architect, CSD Settlement Development

T 61 2 9227 0753, E: [email protected].



3. Overview of Contents for Client Segregation Enhancements

3.1. Mandatory Changes for Clearing Participants

Impacted Parties Clearing and Settlement Participants (i.e. not settlement only participants).

Note: ASX Settlement only participants (custodians, institutions) are not affected by these changes.

Benefits to Impacted Parties

To meet regulatory requirements, participants will be required to include the client’s trustable component on all transfers (via the new MT107 CHESS message) from the Accumulation Account to the Settlement Account for the purpose of meeting CHESS batch settlement obligations. Participants will also be able to schedule units (also via the new MT107 CHESS message) from either a Direct or Sponsored HIN to the Settlement Account. The message should include the relevant trustable amount to be funded into the trust account. In addition participants will be able to schedule units (via the new MT107 CHESS message) from the Settlement Account to a Sponsored or Direct HIN. The message should include the relevant trustable amount to be withdrawn from the trust account. CHESS will then net the trustable amounts on all the MT107 CHESS messages coming into the Settlement Account with those scheduled to come out of the Settlement Account and provide the Payment Provider with a net trustable amount to be either funded into or withdrawn from the trust account. After CHESS batch settlement reporting has completed, CHESS will send the participant a new MT186 message to notify them of the net trustable amount that their payment provider will transfer into or from their trust account.

What is the Proposal? The proposal is to ensure that each time client units are moved into a participants settlement account to facilitate a settlement obligation the respective trustable amount is also transferred into the participants trust bank account as part of the CHESS batch process. In addition any client units transferred out of Accumulation Account outside of the CHESS batch process is funded into trust on the same day.

Description Processing – Accumulation to Settlement

Processing of MT107 CHESS messages from Accumulation Account to the Settlement Account provided that there are sufficient units in the Accumulation Account

Include on the MT107 CHESS message the trustable amount relating to client units.

CHESS will allow for the cancellation of the MT107 CHESS message up until settlement cut off on settlement day.

New Validation Rules for MT107

The Delivering HIN must be Accumulation Account

The Receiving HIN must be Settlement Account

Trust Amount must be zero or greater than zero



Units must be available in the Accumulation Account to be accepted.

Example

Accumulation Account has 2,500 BHP.

Transaction 1 - Schedule 1,000 BHP from Accumulation Account to the Settlement Account. Accepted as sufficient units in Accumulation Account.

Transaction 2 - Schedule 2,000 BHP from Accumulation Account to the Settlement Account. Rejected as insufficient units in Accumulation Account.

CHESS will tally up all scheduled settlement transactions to-date, and subtract the unit quantity from the total units in the Accumulation delivering HIN for that security to determine if the current transaction is accepted.

Note: CHESS will also validate during processing of the Scheduled Settlement CHESS to CHESS Request that sufficient Cum Entitlement and Foreign Guaranteed units are available when applicable.

Processing – Direct or Sponsored HIN to Settlement

Processing of MT107 CHESS messages from Direct or Sponsored HIN to the Settlement Account provided that there are sufficient units (at the time of settlement commencing) in the Direct or Sponsored HIN.



An MT107 CHESS messages not processed due to insufficient units will fail and be rescheduled for the next settlement day. Note that CHESS will not part allocate to a MT107 CHESS message from a Sponsored or Direct HIN.


The Delivering HIN must be a Direct or Sponsored HIN

The Receiving HIN must be Settlement Account

Trust Amount must be zero or greater than zero

Unit Quantity must be available in the Direct or Sponsored HIN at the time of settlement commencing.

Example 1

Direct HIN has 1,000 RIO.

Transaction 1 - Schedule 2,000 RIO from Direct HIN to the Settlement Account.

Transaction 2 - As part of the CHESS batch process on settlement day the participant receives 1,000 RIO via a MT101 CHESS message into their Direct HIN.

In this case the orginal MT107 CHESS message for 2,000 RIO will be processed as the participant has sufficient units.



Example 2

Direct HIN has 1,000 RIO.

Transaction 1 - Schedule 2,000 RIO from Direct HIN to the Settlement Account.

Transaction 2 - As part of the CHESS batch process on settlement day the participant receives 500 RIO via a MT101 CHESS message into their Direct HIN.

In this case the orginal MT107 CHESS message for 2,000 RIO will be rejected as the Direct HIN only has 1,500 RIO available.

Processing – Settlement to Direct or Sponsored HIN

Processing of MT107 CHESS messages from Settlement Account to Direct or Sponsored HIN provided that there are sufficient units (following CHESS batch processing) in the Settlement Account.



MT107 CHESS messages not processed due to insufficient units will fail and be rescheduled for the next settlement day.

Note that CHESS will not part allocate to a MT107 CHESS message from the Settlement Account to a Sponsored or Direct HIN.


The Delivering HIN must be Settlement Account

The Receiving HIN must be a Sponsored or Direct HIN

Unit Quantity must be available in Settlement Account following CHESS batch processing.

Trust Amount must be zero or less than zero

Example 1

Settlement HIN has 2,000 WBC following CHESS batch processing.

Transaction 1 - Scheduled 1,000 WBC from Settlement Account to a Direct HIN, transaction processed.

Transaction 2 - Scheduled 1,000 WBC from Settlement Account to a Sponsored HIN, transaction processed.

Transaction 3 - Scheduled 500 WBC from Settlement Account to a Sponsored HIN, transaction failed as insufficient units.

Note: CHESS will allocate to the MT107 CHESS messages on a “best fit” basis.

Processing - Net Trust Amount Movement confirmation

As part of CHESS settlement reporting, the new MT186 will be generated and sent to the participant. This message will notify them of the net trustable amount that was provided to their payment



provider.

Likely CHESS Impact Refer to Mandatory Changes for Participants for more information.

New Messages

MT107-Scheduled Settlement CHESS to CHESS Transfer Request.

MT186-Net Trust Amount Movement.

Modifications to existing messages:

MT001 - Demand Single Entry CHESS to CHESS Transfer Request (EIS Section 4 ‘Purpose’ modification)

MT002 - Effected Demand Single Entry CHESS to CHESS Transfer (EIS Section 4 ‘Purpose’ modification)

MT003 - Transferor Submitted demand transfer (EIS Section 4 ‘Purpose’ modification)

MT005 - Demand Dual Entry CHESS to CHESS Transfer Request (EIS Section 4 ‘Purpose’ modification)

MT015 - Issuer Sponsored to CHESS Transfer Request (EIS Section 4 ‘Purpose’ modification)

MT017 - Issuer Sponsored to CHESS Conversion Request (EIS Section 4 ‘Purpose’ modification)

MT101 - Dual Entry Settlement Notification (EIS Section 4 ‘Purpose’ modification)

MT105 - Single Entry Settlement CHESS to CHESS Transfer Request (EIS Section 4 ‘Purpose’ modification)

MT106 - Scheduled Single Entry Settlement CHESS to CHESS Transfer (EIS Section 4 ‘Purpose’ modification)

MT116 - Cancelled Settlement Instruction (EIS Section 4 ‘Purpose’ modification)

MT119 - Scheduled Single Entry Settlement CHESS to CHESS Cancellation Transfer (EIS Section 4 ‘Purpose’ modification).



3.2. Mandatory Change to Payment Provider Messaging

Impacted Parties CHESS Payment Providers (Banks)

Benefits to Impacted Parties

Provides a mechanism whereby the Payment Provider can readily identify the trustable amount that must be credited to or withdrawn from the participants trust bank account. The trust amount field will be added to the MT310 Participant Funds Obligation message.

What is the Proposal? The proposal is to modify the existing Payment Provider directed CHESS Participant Funds Obligation message (MT310) to include a trust amount.

The trust amount notified to the Payment Provider must be transferred to or from the participants trust account as part of the CHESS batch settlement process.

This trust amount is to meet the Operating Rule requirement to ensure that all clients are protected intraday

Introduction of modified payment details to Payment Providers will be a mandatory change for all Payment Providers. As such all Payment Providers (or their system vendors) are encouraged to complete user acceptance testing prior to system accreditation. The accreditation will be for the MT310-02 which is being introduced as a result of the trust amount field being added to the MT310.

Description During CHESS Batch Settlement, CHESS will send a MT310-02 Participants Funds Obligation messages per payment facility to the Payment Provider.

The Amount field process will not change

The new trust amount field will be the total trustable amount that Payment Provider must credit to or withdraw from the participants trust account.

Likely CHESS Impact Modification to existing message

310 - Participant Funds Obligation

New CHESS Message Fields

Trust Amount

Note: The version number will change from 01 to 02 with the addition of the trust amount field.



4. Mandatory Changes for Participants This section outlines modifications and additions to CHESS in terms of data fields and messaging to complement the business initiatives.

4.1. Demand Single Entry CHESS to CHESS Transfer Request [001-02]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144

145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160

161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176

177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192

Bit Position

Field Name Format Mandatory/Optional (M/O)

2 Security Code 12 Character M

11 Transaction Basis 1 Character M

16 Receiving HIN 10 Numeric O

17 Delivering HIN 10 Numeric O

34 Participant Reference 16 Character O

35 Supplementary Reference 16 Character O

38 Override Basis of Movement 1 2 Character O





48 Transaction Id 16 Character M

52 Unit Quantity 11 Numeric M

67 Stamping Consideration 14 Numeric, 2 decimal O

68 Duty Payable 14 Numeric, 2 decimal O

69 Duty Type 1 Character O

70 Underlying Reference 16 Character O

176 Guaranteed Foreign Indicator 2 Character O



The purpose of this transfer request is to enable a participant to transfer securities between two CHESS holdings under its control, e.g. between a participant's direct and controlled holdings. The destination account cannot be the participants default Settlement account unless the source account is another settlement account controlled by the participant.

The participant is advised whether the transfer request was effected or rejected.

Either the Receiving HIN or the Delivering HIN must be present in the message. Where only one HIN is present, it must not be the same as the default HIN. If both are present, they must be different.

The transfer request contains the following:

Sender – Participant

Recipient – CHESS

Transmission Cut off times:

Settlement Cut-off Time - if the message is to be processed prior to the next settlement process

End of Day - if the message is to be processed prior to the end of day process.

Prerequisites – none.



4.2. Effected Demand Single Entry CHESS to CHESS Transfer [002–02]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

Bit Position


21 Processing Timestamp 22 Character M


38 Basis of Movement 1 2 Character O






53 Transferor Holding Balance 11 Numeric M

54 Transferee Holding Balance 11 Numeric M

62 Origin Transaction Id 16 Character M

The purpose of this transfer is to notify a participant that a transfer of securities has been effected between two CHESS Holdings under its control, e.g. between a participant's direct and controlled holdings.

The transfer contains the following:

Sender –CHESS

Recipient – Participant

Transmission Cut off times - None

Prerequisites – Receipt of a 001 Demand Single Entry CHESS to CHESS Transfer Request.



4.3. Transferor Submitted Demand Transfer [003-02]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144

145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160

161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176

177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192

Bit Position






19 Receiving PID 5 Numeric M















The purpose of this transfer is to enable two participants within a Related Participant Structure to transfer securities between holdings under their control. The ‘Parent Participant’ may deliver securities to a ‘Related Participant’; the ‘Related Participant’ may deliver securities to the ‘Parent Participant’.

The transferor participant is advised whether the transfer request was effected or rejected. If the transfer is effected, the transferee participant is advised the details of the transfer.



The destination account cannot be the participants Settlement account. Participants should use the new MT107 CHESS message.



Recipient – CHESS


Settlement Cut-off Time - if the message is to be processed prior to the next settlement process

End of Day - if the message is to be processed prior to the end of day process

Prerequisites – None.



4.4. Demand Dual Entry CHESS to CHESS Transfer Request [005-03]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144

145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160

161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176

177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192

Bit Position




16 HIN 10 Numeric O

19 Receiving PID 5 Numeric M

20 Delivering PID 5 Numeric M















178 Secondary Matching Flag 1 Character O

The purpose of the transfer request is to transfer securities between CHESS holdings controlled by different participants in CHESS. Both participants are required to enter requests which are then matched.



If the transfer is originating from the Accumulation Account then there has to be sufficient units to cover all previously accepted MT107 messages.

If a match is made the transfer is effected immediately and the result is advised to both participants. The Basis of Movement is determined at the point the transfer is effected.

If no match is made the request is flagged as unmatched, the submitting participant is advised that the request is unmatched and the counterparty is advised of the details.

If Secondary Matching Flag is used, i.e. populated with Y, the Supplementary Reference field becomes mandatory and populated data must match with counterparty. The supplementary Reference field must not contain spaces.



Recipient – CHESS


Settlement Cut-off Time - If the message is to be processed prior to the next settlement process

End of Day - If the message is to be processed prior to the end of day process.




4.5. Issuer Sponsored to CHESS Transfer Request [015-03]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144

145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160

161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176

177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192

Bit Position





25 Movement Reason 1 Character M

28 Location of Register 3 Character O








46 PIN 4 Numeric O


51 Securityholder Reference Number

12 Character M









The purpose of the transfer request is to enable securities in an Issuer sponsored holding to be transferred to the CHESS sub-register. The transfer request requires authorisation by the Registry.

Requests to transfer to the participants Settlement Account will be rejected.

The participant is advised if the transfer request has been passed to the Registry or rejected by CHESS. The transfer request details are forwarded to the Registry. The request is held in CHESS until a response is received from the Registry.



Recipient – CHESS


Settlement Cut-off Time less 12 hours

If the securities being moved to the CHESS sub-register are required for settlement purposes.




4.6. Issuer Sponsored to CHESS Conversion Request [017-03]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144

145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160

161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176

177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192

Bit Position




25 Movement Reason 1 Character M

28 Location of Register 3 Character O








46 PIN 4 Numeric O


51 Securityholder Reference Number

12 Character M





The purpose of the conversion request is to enable securities in an Issuer Sponsored Holding to be converted to the CHESS sub-register. The conversion request requires authorisation by the principal Registry.

Requests to convert securities from an Issuer Sponsored Holding to the participants Settlement Account will be rejected by CHESS.

The participant is advised if the conversion request has been passed to the Registry or rejected by CHESS. The conversion request details are forwarded to the Registry. The request is held in CHESS until a response is received from the Registry.

The conversion request contains the following:


Recipient – CHESS


Settlement Cut-off Time less 12 hours

If the securities being moved to the CHESS sub-register are required for settlement purposes.




4.7. Dual Entry Settlement Notification [101-02]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144

145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160

161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176

177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192

Bit Position



3 Settlement Amount 15 +/- Numeric, 2 decimal O


12 Settlement Date 8 Numeric M

13 Trade Date 8 Numeric O

16 HIN 10 Numeric O

19 Receiving PID / Payer PID 5 Numeric M

20 Delivering PID / Payee PID 5 Numeric M










56 Part-Settlement 1 Character O








This notification contains two purposes – one with units and one without units. The purpose for each of these is listed below.

The notification contains the following:


Recipient – CHESS


Valued Instruction Cut-off Time - If the message has a non-zero Settlement Amount and is to be processed prior to the commitment of value settlement instructions for the next settlement process

Settlement Cut-off Time - If the message has a zero Settlement Amount and is to be processed prior to the next settlement process.


Purpose for Delivery Transaction with Units

The purpose of the transaction is to notify to CHESS the details of a settlement between two participants. Each participant independently notifies settlement details which are matched by the system.

The delivery HIN cannot be the participant’s Accumulation Account.

The Settlement Amount is only provided if the value is to be settled in the settlement process. If the instruction is free of value or the value cannot be settled in CHESS, the Settlement Amount should not be provided.

If a match is made, the instruction is scheduled for later settlement and the status is advised to both participants. If the notification is not matched, it is flagged as unmatched and the counterparty is advised of the notification details.

The Notification is matched (on the criteria below) against other unmatched Notifications that have been sent to CHESS. The criteria are:

Security Code

Settlement Amount (within the Settlement Amount Tolerance)

Transaction Basis

Settlement Date

Receiving PID/Payer PID

Delivering PID/Payee PID

Basis of Movement (using defaults or overrides as necessary)

Unit Quantity

Trade Date (value, market only)

Guaranteed Foreign Indicator.

If one of the participants indicates that the settlement instruction must not be part-settled, the settlement instruction will not be part-settled.

Purpose for Payment Transaction without Units (Miscellaneous Payments)



The purpose of the transaction is to notify CHESS the details of a payment between two participants scheduled for settlement in the CHESS batch. Each participant independently notifies payment details which are matched by the system.

The Notification is matched against other unmatched Notifications that have been sent to the CHESS using the same matching criteria listed for delivery transactions. If a match is made, the instruction is scheduled for later settlement and the status is advised to both participants. If the notification is not matched, it is flagged as unmatched and the counterparty is advised of the notification details.The Notification must be populated as below. All other fields must be omitted.

Field Instruction

Security Code As defined in EIS Section 8

Settlement Amount MUST be greater than zero

Transaction Basis MUST be ‘F’

Settlement Date A valid settlement date in CHESS

HIN Optional - only populate to direct payment to a HIN-specific payment facility. Otherwise, the default payment facility will be targeted.

Receiving PID/Payer PID Participant paying funds

Delivering PID/Payee PID Participant receiving funds

Participant Reference Optional – internal reference information

Supplementary Reference Optional – will be passed to counterparty

Transaction ID A valid transaction ID in CHESS

Unit Quantity MUST be zero

Part-Settlement MUST be ‘Y’ or blank

Underlying Reference Optional – internal reference information

All other fields must be omitted.

The table below summarises the edit rules that CHESS applies to Dual Entry Settlement Notification (101) messages for differing values of the Transaction Basis field.

Transaction Basis Settlement Amount

Trade Date Stamp Duty

Market (M) zero not permitted not applicable

not zero required not applicable

Off-market (O) zero not permitted not applicable

not zero not permitted Duty Paid (K), Loan (L), or Loan Return (M); other fields not applicable

Facility for Non Reportable Transactions (F)

zero optional not applicable

not zero optional not applicable

Miscellaneous Payments (F)

greater than zero not applicable not applicable

IPO (I) zero optional not permitted

not zero optional not permitted

Stock Lending Activity (L) zero not permitted not applicable

not zero not permitted not applicable





4.8. Single Entry Settlement CHESS to CHESS Transfer Request [105-02]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144

145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160

161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176

177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192

Bit Position
















56 Part-Settlement 1 Character O






The purpose of this transfer request is to enable a participant to schedule the transfer of securities between CHESS holdings under its control in a future settlement cycle, e.g. between a participant's direct and sponsored holdings. The participant is advised whether the transfer request has been rejected or scheduled.



Delivery HIN cannot be the participants Accumulation HIN (except for an Accumulation HIN to Accumulation HIN movement). The receiving HIN cannot be the Settlement HIN if the delivery HIN is either a sponsored or Direct HIN.

Either the Receiving or the Delivering HIN must be present in the message.



Recipient – CHESS

Transmission Cut off times

Settlement Cut-off Time - if the message is to be processed prior to the next settlement process.




4.9. Scheduled Single Entry Settlement CHESS to CHESS Transfer [106-01]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

Bit Position






The purpose of the transfer is to notify a participant that a Single Entry Settlement CHESS to CHESS Transfer Request or a Scheduled Settlement CHESS to CHESS Transfer Request has been received, validated and scheduled for future settlement.


Sender – CHESS


Transmission Cut off times - None

Prerequisites – Receipt of one of the following:

105 Single Entry Settlement CHESS to CHESS Transfer Request

107 Scheduled Settlement CHESS to CHESS Transfer Request.



4.10. Scheduled Settlement CHESS to CHESS Transfer Request [107-01]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144

145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160

161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176

177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192

Bit Position

















73 Trust Amount 15 ±Numeric, 2 decimal M


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4 5 6

20 21 22

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6 69 7

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100 101 10

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6 7 8

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43 44 4

59 60 6

75 76 7

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13 14 15

29 30 31

45 46 47

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77 78 79

93 94 95

09 110 111

25 126 127

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119 Single Entry Settlement CHESS to CHESS Transfer Cancellation Request

129 Dual Entry Settlement Cancellation Request

135 Dual Entry Settlement Notification Cancellation request

483 RTGS Notification Cancellation Request

485 RTGS Dual Entry Cancellation Request.

139 Isolate Counterparty Request being received by CHESS

As a result of CHESS isolating a counterparty at End of Day on Record Date for outstanding NBOs

As a result of CHESS housekeeping actions

A Broker/Broker Trade is notified as cancelled through an Approved Market Operator Trading System that clears through CHESS

As the result a cancellation of a 550 Scheduled Payment Instruction.



4.12. Single Entry Settlement CHESS to CHESS Transfer Cancellation Request [119-01]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

Bit Position



49 Target Transaction Id 16 Character M

The purpose of this transfer cancellation request is to enable the participant to cancel a previously entered Single Entry Settlement CHESS to CHESS Transfer Request or a Scheduled Settlement CHESS to CHESS Transfer Request. If the transfer is scheduled for settlement, it is cancelled and the participant is advised, otherwise, the cancellation request is rejected.

The transfer cancellation request contains the following:


Recipient – CHESS

Transmission Cut off times

Settlement Cut-off Time if the message is to be processed prior to settlement process

Prerequisites – Receipt of one of the following:

105 Single Entry Settlement CHESS to CHESS Transfer Request

107 Scheduled Settlement CHESS to CHESS Transfer Request.



4.13. Net Trust Amount Movement [186-01]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

Bit Position




29 Payment Facility Id 6 Numeric M



The purpose of this message is to notify the participant of the actual net movement that has been notified to the payment provider that is required to be transferred to or from the participants trust bank account.

This notification is provided at the payment facility level for that settlement day.

The net trust amount movement request contains the following:

Sender – CHESS


Transmission Cut off times – None as CHESS sends message after completing of settlement reporting

Prerequisites – MT107-01 Scheduled Settlement CHESS to CHESS Transfer Request Settlement Instructions settled in the settlememt process.



The introduction of the Net Trust Amount Movement message from CHESS Batch Settlement reporting can be seen in the diagram below.



5. Change to Payment Provider Messaging This section outlines the modifications the CHESS message in terms of data fields and messaging to complement the business initiatives.

5.1. Participant Funds Obligation [310-02]

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

Bit Position



19 PID 5 Numeric M


29 Payment Facility Id 6 Numeric M

44 Pay Receive Indicator 1 Character M


56 Authorisation Required 1 Character M

67 Amount 14 Numeric, 2 decimal M


96 Participant Name 90 Character M

126 Authorisation Reason 10 Character M

The purpose of the participant funds obligation is to notify the Payment Provider of the actual net funds obligation to be paid or received by the CHESS participant through the Payment Facility on the settlement day.

A net funds obligation to be paid requires an authorisation response from the Payment Provider. A net funds obligation to be received requires an acknowledgment response from the Payment Provider. A failure by a participant to have funds available may cause a second round of these messages to be sent.

The Payment Provider (as part of the CHESS batch process) is required to transfer the trust amount to or from the participants trust bank account.

The participant funds obligation contains the following:

Sender - CHESS

Recipient – Payment Provider

Transmission Cut off times - During the authorisation stage of the settlement process

Prerequisites - Payment facility established in CHESS.



Trust Amount

Format 15 +/- Numeric, 2 decimal

Definition Identifies the client ‘trust’ component of the amount. This is the amount that must be credited or withdrawn from the participants trust account by the Payment Provider.

Allowable Values

The changes to payment provider messaging can be seen in the diagram below.


© Copyright 2014 ASX Limited ABN 98 008 624 691. All rights reserved 2014 39.

6. Appendix 1 – Restrictions on Existing Transfer Messaging

Mess Type

CHESS Batch

Description Source Participant A

Destination Participant A

Destination Participant B

Changes Process Change

001 No Demand Single Entry CHESS to CHESS Transfer Request Accumulation Accumulation No change No

001 No Demand Single Entry CHESS to CHESS Transfer Request Accumulation Settlement Replaced by new MT107 CHESS message (including trustable amount).

Yes

001 No Demand Single Entry CHESS to CHESS Transfer Request Accumulation Sponsored HIN No change – However there has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

No

001 No Demand Single Entry CHESS to CHESS Transfer Request Accumulation Direct HIN No change – However there has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

No

001 No Demand Single Entry CHESS to CHESS Transfer Request Settlement Accumulation No change No

001 No Demand Single Entry CHESS to CHESS Transfer Request Settlement Settlement No change No

001 No Demand Single Entry CHESS to CHESS Transfer Request Settlement Sponsored HIN No change No

001 No Demand Single Entry CHESS to CHESS Transfer Request Settlement Direct HIN No change No

001 No Demand Single Entry CHESS to CHESS Transfer Request Sponsored HIN Accumulation No change No

001 No Demand Single Entry CHESS to CHESS Transfer Request Sponsored HIN Settlement No longer allowed. Must transfer into the Accumulation Account and use the new MT107 CHESS message.

Yes

001 No Demand Single Entry CHESS to CHESS Transfer Request Sponsored HIN Sponsored HIN No change No

001 No Demand Single Entry CHESS to CHESS Transfer Request Sponsored HIN Direct HIN No change No

001 No Demand Single Entry CHESS to CHESS Transfer Request Direct HIN Accumulation No change No

001 No Demand Single Entry CHESS to CHESS Transfer Request Direct HIN Settlement No longer allowed. Must transfer into the Accumulation Account and use the new MT107 CHESS message.

Yes

001 No Demand Single Entry CHESS to CHESS Transfer Request Direct HIN Sponsored HIN No change No

001 No Demand Single Entry CHESS to CHESS Transfer Request Direct HIN Direct HIN No change No

003 No Transferor Submitted Demand Transfer Accumulation Accumulation No longer allowed. Currently not used. No



Mess Type

CHESS Batch





003 No Transferor Submitted Demand Transfer Accumulation Settlement Replaced by new MT107 CHESS message (including trustable amount).

Yes

003 No Transferor Submitted Demand Transfer Accumulation Sponsored HIN No change – However there has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

No

003 No Transferor Submitted Demand Transfer Accumulation Direct HIN No change – However there has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

No

003 No Transferor Submitted Demand Transfer Settlement Accumulation No longer allowed. Currently not used. No

003 No Transferor Submitted Demand Transfer Settlement Settlement No longer allowed. Currently not used. No

003 No Transferor Submitted Demand Transfer Settlement Sponsored HIN No change No

003 No Transferor Submitted Demand Transfer Settlement Direct HIN No change No

003 No Transferor Submitted Demand Transfer Sponsored HIN Accumulation No change No

003 No Transferor Submitted Demand Transfer Sponsored HIN Settlement No longer allowed. Must transfer into the Accumulation Account and use the new MT107 CHESS message.

Yes

003 No Transferor Submitted Demand Transfer Sponsored HIN Sponsored HIN No change No

003 No Transferor Submitted Demand Transfer Sponsored HIN Direct HIN No change No

003 No Transferor Submitted Demand Transfer Direct HIN Accumulation No change No

003 No Transferor Submitted Demand Transfer Direct HIN Settlement No longer allowed. Must transfer into the Accumulation Account and use the new MT107 CHESS message.

Yes

003 No Transferor Submitted Demand Transfer Direct HIN Sponsored HIN No change No



Mess Type

CHESS Batch





003 No Transferor Submitted Demand Transfer Direct HIN Direct HIN No change No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Accumulation Accumulation No change – However there has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Accumulation Settlement No change – However there has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Accumulation Sponsored HIN No change – However there has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Accumulation Direct HIN No change – However there has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Settlement Accumulation No change No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Settlement Settlement No change No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Settlement Sponsored HIN No change No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Settlement Direct HIN No change No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Sponsored HIN Accumulation No change - assumption is that this is not related to a client sell transaction for Participant A.

No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Sponsored HIN Settlement No change - assumption is that this is not related to a client sell transaction for Participant A.

No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Sponsored HIN Sponsored HIN No change - assumption is that this is not related to a client sell transaction for Participant A

No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Sponsored HIN Direct HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Direct HIN Accumulation No change - assumption is that this is not related to a client sell transaction for Participant A.

No



Mess Type

CHESS Batch





005 No Demand Dual Entry CHESS to CHESS Transfer Request Direct HIN Settlement No change - assumption is that this is not related to a client sell transaction for Participant A.

No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Direct HIN Sponsored HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No

005 No Demand Dual Entry CHESS to CHESS Transfer Request Direct HIN Direct HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No

007 No Demand CHESS to Issuer Sponsored Transfer Request Accumulation No change – However there has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

No

007 No Demand CHESS to Issuer Sponsored Transfer Request Settlement No change No

007 No Demand CHESS to Issuer Sponsored Transfer Request Sponsored HIN No change No

007 No Demand CHESS to Issuer Sponsored Transfer Request Direct HIN No change No

011 No CHESS to Issuer Sponsored Conversion Request Accumulation No change – However there has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

No

011 No CHESS to Issuer Sponsored Conversion Request Settlement No change No

011 No CHESS to Issuer Sponsored Conversion Request Sponsored HIN No change No

011 No CHESS to Issuer Sponsored Conversion Request Direct HIN No change No

015 No Issuer Sponsored to CHESS Transfer Request Accumulation No change No

015 No Issuer Sponsored to CHESS Transfer Request Settlement No longer allowed, must transfer into the Accumulation Account.

Yes

015 No Issuer Sponsored to CHESS Transfer Request Sponsored HIN No change No

015 No Issuer Sponsored to CHESS Transfer Request Direct HIN No change No

017 No Issuer Sponsored to CHESS Conversion Request Accumulation No change No

017 No Issuer Sponsored to CHESS Conversion Request Settlement No longer allowed, must transfer into the Accumulation Account.

Yes

017 No Issuer Sponsored to CHESS Conversion Request Sponsored HIN No change No



Mess Type

CHESS Batch





017 No Issuer Sponsored to CHESS Conversion Request Direct HIN No change No

101 Yes Dual Entry Settlement Notification Accumulation Accumulation No longer allowed. As this transfer may contain client stock, Participant A must use the new MT107 CHESS message (including the trustable amount) and then send the 101 from the Settlement Account.

Yes

101 Yes Dual Entry Settlement Notification Accumulation Settlement No longer allowed. As this transfer may contain client stock, Participant A must use the new MT107 CHESS message (including the trustable amount) and then send the 101 from the Settlement Account.

Yes

101 Yes Dual Entry Settlement Notification Accumulation Sponsored HIN No longer allowed. As this transfer may contain client stock, Participant A must use the new MT107 CHESS message (including the trustable amount) and then send the 101 from the Settlement Account.

Yes

101 Yes Dual Entry Settlement Notification Accumulation Direct HIN No longer allowed. As this transfer may contain client stock, Participant A must use the new MT107 CHESS message (including the trustable amount) and then send the 101 from the Settlement Account.

Yes

101 Yes Dual Entry Settlement Notification Settlement Accumulation No change No

101 Yes Dual Entry Settlement Notification Settlement Settlement No change No

101 Yes Dual Entry Settlement Notification Settlement Sponsored HIN No change No

101 Yes Dual Entry Settlement Notification Settlement Direct HIN No change No

101 Yes Dual Entry Settlement Notification Sponsored HIN Accumulation No change - assumption is that this is not related to a client sell transaction for Participant A.

No

101 Yes Dual Entry Settlement Notification Sponsored HIN Settlement No change - assumption is that this is not related to a client sell transaction for Participant A.

No

101 Yes Dual Entry Settlement Notification Sponsored HIN Sponsored HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No



Mess Type

CHESS Batch





101 Yes Dual Entry Settlement Notification Sponsored HIN Direct HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No

101 Yes Dual Entry Settlement Notification Direct HIN Accumulation No change - assumption is that this is not related to a client sell transaction for Participant A.

No

101 Yes Dual Entry Settlement Notification Direct HIN Settlement No change - assumption is that this is not related to a client sell transaction for Participant A.

No

101 Yes Dual Entry Settlement Notification Direct HIN Sponsored HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No

101 Yes Dual Entry Settlement Notification Direct HIN Direct HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No

105 Yes Single Entry Settlement CHESS to CHESS Transfer Request

Accumulation Accumulation No Change No


Accumulation Settlement Replaced by new MT107 CHESS message (including trustable amount).

Yes


Accumulation Sponsored HIN No longer allowed. As this transfer may contain client stock, Participant A must use the new MT107 CHESS message (including the trustable amount) and then send the 105 from the Settlement Account.

Yes


Accumulation Direct HIN No longer allowed. As this transfer may contain client stock, Participant A must use the new MT107 CHESS message (including the trustable amount) and then send the 105 from the Settlement Account.

Yes


Settlement Accumulation No change No


Settlement Settlement No change No


Settlement Sponsored HIN No change No


Settlement Direct HIN No change No

105 Yes Single Entry Settlement CHESS to CHESS Transfer Sponsored HIN Accumulation No change No



Mess Type

CHESS Batch





Request


Sponsored HIN Settlement No longer allowed. Must transfer into the Accumulation Account & use the new MT107 CHESS message.

Yes


Sponsored HIN Sponsored HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No


Sponsored HIN Direct HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No


Direct HIN Accumulation No change No


Direct HIN Settlement No longer allowed. Must transfer into the Accumulation Account and use the new MT107 CHESS message.

Yes


Direct HIN Sponsored HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No


Direct HIN Direct HIN No change - assumption is that this is not related to a client sell transaction for Participant A.

No

107 Yes Scheduled Settlement CHESS to CHESS Transfer Request Accumulation Settlement New Message. For scheduling a movement of units from Accumulation Account to Settlement Account. Must include the trustable amount where relevant. There has to be sufficient units in the Accumulation Account to cover all previously accepted MT107 CHESS messages.

Yes

107 Yes Scheduled Settlement CHESS to CHESS Transfer Request Sponsored HIN Settlement New Message. Allows the scheduling of units from a Sponsored HIN to the participants Settlement Account. Must include the trustable amount where relevant. There has to be sufficient units for the delivering Sponsored HIN during Batch Settlement otherwise unsettled messages will be failed and rescheduled to the next day.

No

107 Yes Scheduled Settlement CHESS to CHESS Transfer Request Direct HIN Settlement New Message. Allows the scheduling of units from a Direct HIN to the participants Settlement Account. Must include the trustable amount where relevant.

No



Mess Type

CHESS Batch





There has to be sufficient units for the delivering Direct HIN during Batch Settlement otherwise unsettled messages will be failed and rescheduled to the next day.

107 Yes Scheduled Settlement CHESS to CHESS Transfer Request Settlement Sponsored HIN New Message. Allows the scheduling of units from Settlement Account to a Sponsored HIN. Amount to be withdrawn from the trust account should be included where relevant. If insufficient units to cover all messages then one of the messages may be part allocated. Any unsettled messages will be failed and rescheduled to the next day.

Yes

107 Yes Scheduled Settlement CHESS to CHESS Transfer Request Settlement Direct HIN New Message. Allows the scheduling of units from Settlement Account to a Direct HIN. Amount to be withdrawn from the trust account should be included where relevant. If insufficient units to cover all messages then one of the messages may be part allocated. Any unsettled messages will be failed and rescheduled to the next day.

Yes

Disclaimer

This document provides general information only and may be subject to change at any time without notice. ASX Limited (ABN 98 008 624 691) and its related bodies corporate (“ASX”) makes no representation or warranty with respect to the accuracy, reliability or completeness of this information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way, including by way of negligence, from or in connection with any information provided or omitted, or from anyone acting or refraining to act in reliance on this information. The information in this document is not a substitute for any relevant operating rules, and in the event of any inconsistency between this document and the operating rules, the operating rules prevail to the extent of the inconsistency.

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The trademarks listed below are trademarks of ASX. Where a mark is indicated as registered it is registered in Australia and may also be registered in other countries. Nothing contained in this document should be construed as being any licence or right to use of any trademark contained within the document.

ASX®, CHESS®

Documents

0772.14.07.a - Client Segregation Enhancements to Chess · CHESS Release Business and Technical Overview Client Segregation Enhancements to CHESS