APG Changes

The following changes have been made to the ASX Settlement Procedure Guidelines (APGs).

Additional changes will be made available in subsequent APG releases.

Summary

Description

Summary

Description

General Changes

Terminology Changes

The following terminology changes have occurred:

  • ASXS bulletins → ASXS market notices / ASXS notices

  • Australian Standard Transfers → Off Market Issuer Sponsored Transfers

  • bidder → offeror

  • CHESS holder → account (HIN)

  • CHESS message → ISO message

  • Client Relations → ASX Customer Readiness

  • controlling PID → controlling participant

  • current controlling participant → existing controlling participant

  • daily settlement → batch settlement

  • default payment facility → nominated payment facility

  • default settlement entrepot → nominated settlement entrepot;

  • dual entry / dual entry settlement notifications / demand dual entry transfer → bilateral / bilateral demand transfer;

  • HIN → account (HIN);

  • HIN specific payment facility → account specific payment facility

  • holder → account holder;

  • registry / issuer register → issuer (registry)

  • issuer sponsored to CHESS transfer → issuer sponsored to participant transfer

  • ITS → Approved Market Operators (AMOs)

  • message → notification / none (i.e. 'Account Creation Request')

  • PID → UIC / BIC

  • Post Trade Operations → ASX Operations

  • single entry / single entry settlement transfer / demand single entry transfer → unilateral / unilateral settlement instruction / unilateral demand transfer;

  • takeover bidder → participant bidder

  • third party clearers → general clearing participants

Summary

Description

Summary

Description

Section 02 - CHESS overview

Merger of Section 02 - CHESS overview and Section 04 - Client sponsorship

The following sections have been merged:

The following sections not present in the above merger of sections will be made available in a subsequent release:

  • 4.4 Demand Holding Statement Request; and

  • 4.5 Suppressing Holding Statements.

CHESS Connectivity Changes

The network section within the CHESS overview has been renamed from “CHESS Network” → “CHESS Connectivity.

Additionally, to support the replacement of CHESS, the following will be decommissioned:

  • External Interface Specification (EIS) messaging:

  • CHESS Access; and

  • CHESS PC.

Summary

Description

Summary

Description

Section 03 - Participation in the settlement facility

Name Change

To align to the ASX Settlement Rules, this section has been renamed from “Participation in the settlement facility” → ”ASX settlement participation”.

Removal of Section 3.9 - Standing HINs

The CHESS Replacement System no longer supports standing HINs for settlement instructions and transfers due to ISO messaging requirements. As such, Section 3.9 - Standing HINs has been removed. Similar functionality will be made available in sections covering nominated settlement entrepot functionality.

Removal of Section 3.10 - Change of registry

The following section has been moved:

  • Section 3.10 - Change of Registry → 22.13 - Change of Registry

Removal of Section 3.13 - Stamp duty

Stamp duty functionality is not available in the CHESS Replacement System as the fields that supports this function are not present in both ISO 20022 messaging or DAML commands.

Removal of Section 3.15 - Disaster recovery and business continuity planning

Additional details related to disaster recovery and business continuity planning will be made available in a subsequent release.

Summary

Description

Summary

Description

Section 04 - Account administration

Name Change

To align to the change in account and holder structure in the CHESS Replacement System, this section has been renamed from “Client/holder administration” → “Account administration”.

Section Re-sequence

Due to the merger of section 04 Client sponsorship into section 02 CHESS overview, the section number of account administration has been renumbered from “Section 05” → “Section 04”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current Section 05 reference.

Merger of Section 05 - Client/holder administration and Section 25 - Holding lock facilities

The following section has been merged:

The following section has been removed:

  • 25.1 - Locking Issuer Sponsored Holdings – Functionality not supported by CHESS Replacement.

Procedures References

Procedures will be limited to three levels instead of four levels, i.e. 5.1.3 versus 5.1.3.1.

References to death, bankruptcy and other restrictions

The following sections have been merged:

  • 5.11 – Death of a holder;

  • 5.12 – Bankruptcy of a holder; and

  • 5.13 – Other restrictions on holders and holdings.

This content is available in the following sections:

Removal of 5.10 – Processing Financial Products with Restrictions (Statutory Declarations)

The following section has been removed:

  • Section 5.10 - Processing Financial Products with Restrictions (Statutory Declarations) - Information applicable to CHESS Replacement is covered in sections 22.6.

Removal of 5.15 – Securityholder Reference Number (SRN)

The following section has been moved:

Removal of 5.16 – Enquiring on controlling PID and holder status

The following section has been moved:

Summary

Description

Summary

Description

Section 05 - Holding administration locks

Merging of sections

The following have been merged into this section:

  • 5.13.2 – Locking Individual CHESS Holdings; and

  • 25.2.1 – Single Holding Locks.

Summary

Description

Summary

Description

Section 06 - Transfers and conversions between subregisters

Name Change

To align CHESS Replacement Conversions functionality, this section has been renamed from “Conversion between subregisters” to “Transfers and conversions between subregisters”.

To align to CHESS Replacement Conversions functionality the following sub-sections have been renamed from:

Merger of Section 06 - Conversion between subregisters and Section 21 - Issuer sponsored enquiry

The following sections have been merged:

  • 21.1 - Issuer Sponsored Enquiry Overview;

  • 21.2 - Securityholder Reference Number Enquiry;

  • 21.3 - Issuer Sponsored Holding Balance Enquiry; and

  • 5.15 - Securityholder reference number (SRN).

This content is available in the following section:

Merger of Section 06 - Conversion between subregisters, part of Section 10 - CHESS Housekeeping For Unactioned Transfer and Conversion Requests and part of Section 08 - Transfers between holdings

The follow sections have been moved from “Section 8“ current CHESS APG:

Summary

Description

Summary

Description

Section 07 - Transfers between CHESS accounts

Name Change

To align to CHESS Replacement Transfers functionality, this section has been renamed from “Transfers between holdings” → “Transfers between CHESS accounts”.

To align to CHESS Replacement Conversions functionality the following sub-sections have been renamed from:

Section Re-sequence

Due to the merger of section 04 Client sponsorship into section 02 CHESS overview, the section number of account administration has been renumbered from “Section 08” → “Section 07”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current Section 08 reference.

Merger of Section 08 - Transfers between holdings, Section 10 – Cancelling transactions and Section 32 – Client account segregation

The following sections have been merged:

Removal of multiple sections from Section 32 – Client account segregation

The following sections have been removed:

  • 10.5 - Removing a Settlement Instruction from Settlement - Additional details related to Removing a Settlement Instruction from Settlement will be made available in a subsequent release.

  • 32.7 - CHESS Payment Providers (Banks) – This information is covered in Section 09 Settlement.

  • 32.8 – CHESS Diary Adjustments Processing – This information is no longer applicable to the CHESS Replacement System.

  • 32.9 – Transfer Restrictions – This information is no longer applicable to the CHESS Replacement System.

  • 32.10 - Business & Technical Overview - This information is no longer applicable to the CHESS Replacement

Summary

Description

Summary

Description

Section 08 - Market trade processing

Section Re-sequence

Due to the earlier release of section 07 Transfers between CHESS accounts, the section number of market trade processing has been renumbered from “Section 07” → “Section 08”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current Section 07 reference.

Removal of multiple sections from Section 08 - Market trade processing

The following sections have been removed:

  • 7.5 - Blocking And Unblocking - This information is no longer applicable to the CHESS Replacement System.

  • 7.6 - Change Settlement Instruction Novated Market Trades - This information is no longer applicable to the CHESS Replacement System.

Summary

Description

Summary

Description

Section 09 - Settlement

Settlement Linking and Locks

NEW sections detailing the purpose and process of Settlement Linking and Locks within CHESS.

Removal of multiple sections from Section 09 - Settlement

The following sections have been removed:

Summary

Description

Summary

Description

Section 10 - Corporate action principles

Section Re-sequence

Due to the merger of section 04 Client sponsorship into section 02 CHESS overview, the section number of account administration has been renumbered from “Section 11” → “Section 10”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current Section 11 reference.

Merger of ASX Settlement Procedure Section 11 - Corporate action principles and Section 14 - Diary adjustments

The following sections have been merged:

Removal of multiple sections from Section 11 - Corporate action principles and Section 14 - Diary adjustments

The following section has been moved:

  • Section 11.2 - Reversals (of Financial Product Movements) → 22.9 - Reversals (of Financial Product Movements)

The following sections has been removed:

  • 14.11 - Manual Diary Adjustments – This information is no longer applicable to the CHESS Replacement System.

Summary

Description

Summary

Description

Section 11 - Corporate actions

Section Re-sequence

Due to the merger of section 11 Corporate action principles and section 14 Diary adjustments, the section number of corporate actions has been renumbered from “Section 12” → “Section 11”.

The section has been re-sequenced into alphabetical order

For clarity, section references and comparisons to the current CHESS APG will continue to their current section 12 reference.

New sections added to Section 11 - Corporate actions

Corporate action lifecycles have been integrated into this section to illustrate timelines and procedures.

Further to this, the following sections have been added:

  • 11.8 Entitlement Issue (inclusive of Accelerated Entitlement Issues, 12.10 Entitlement (Non-Renounceable) Issue and 12.18 (Rights (Renounceable) Issues); and

  • 11.12 Security Purchase Plan has been added.

Removal of multiple sections from Section 11 - Corporate actions

The following sections have been removed:

  • 12.6 - Company Announcements - This information is covered in section 10 Corporate action principles.

  • 12.12 - Maturity and Redemption - This information is covered in section 12.7 Maturity and Redemption.

  • 12.14 - Placement - Information applicable to CHESS Replacement is covered in sections 15.1 and 15.2.

  • 12.15 - Priority Issue - This information is covered in 11.9 Non Pro Rata Offer.

  • 12.16 - Proxy Voting - This information is no longer applicable to the CHESS Replacement System.

  • 12.17 - Re-Investment and Share Election Schemes - Further details relating to dividend reinvestment plan (DRP) elections will be made available in a subsequent release.

  • 12.19 - Scheme of arrangement - This information is covered in 12.6 Other Events.

  • 12.20 - Security Code Change - This information is covered in 10.3 Security code changes.

  • 12.21 - Security Split - This information is covered in 11.10 Note Conversions and Option Exercises.

  • 12.22 - Top Up offer - This information is no longer applicable to the CHESS Replacement System.

Summary

Description

Summary

Description

Section 12 - Acquisitions and other events

Name Change

To align to CHESS Replacement functionality, this section has been renamed from “Acquisitions” → “Acquisitions and other events”.

Section Re-sequence

Due to the merger of section 11 Corporate action principles and section 14 Diary adjustments, the section number of corporate actions has been renumbered from “Section 13” → “Section 12”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current Section 13 reference.

New sections added to Section 12 - Acquisitions

Corporate action lifecycles have been integrated into this section to illustrate timelines and procedures.

The following sections have been added:

  • 12.4 Proportional Off-market Takeover Bids;

  • 12.6 Scheme of Arrangement; and

  • 12.7 Maturity and Redemption.

Merger of sub-section content from Section 12 - Acquisitions

The following sections have been merged:

  • 13.5 - Offeror initiated takeover acceptance initiating a bid election - offeror → Sections 12.3, 12.4 and 12.5.

Summary

Description

Summary

Description

Section 13 - Cash Market Margining (CMM)

Section Re-sequence

The APGs have been re-sequence due to this being an extensive refresh of the APG, the section number of Cash Market Margining (CMM) has been renumbered from “Section 30” → “Section 13”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current Section 30 reference.

Removal of multiple sections from Section 30 - Cash market Margining (CMM)

The following section has been removed:

  • 30.6 - Lodging a bank guarantee.

Summary

Description

Summary

Description

Section 14 - Collateral for Exchange Traded Options

Name Change

To align to CHESS Replacement functionality, this section has been renamed from “Collateral for derivatives / Collateral held with ASX Clear” → “Collateral for exchange traded options”.

Section Re-sequence

The APGs have been re-sequence due to this being an extensive refresh of the APG, the section number of Collateral Held with ASX Clear has been renumbered from “Section 17” → “Section 14”.

New Sections added to Section 14

The following section has been added:

  • 14.5 - Collateral removal warning due to expiry of securities.

Summary

Description

Summary

Description

Section 15 - Primary market facility

Section Re-sequence

The APGs have been re-sequenced to allow for subsequent product sections to be grouped.

The section number of primary market facility has been renumbered from “Section 20” → “Section 15”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current section 20 reference.

Removal of multiple sections from Section 15 - Primary market facility

The following sections have been removed:

  • 20.3 - Transformation of Allocation Interests - This information is covered in the procedure of section 15.2.

  • 20.4 - Processing an Allocation for a Participant’s Client - This information is covered in the procedure of section 15.2.

  • 12.14 - Placement - Information applicable to CHESS Replacement is covered in sections 15.1 and 15.2.

Summary

Description

Summary

Description

Section 16 - CHESS depositary interests

Section Re-sequence

The APGs have been re-sequenced to group product related sections.

The section number of CHESS depositary interests has been renumbered from “Section 19” → “Section 16”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current section 19 reference.

Merger of sub-section content from 19 - CHESS Depository Interests

The following sections has been merged:

Summary

Description

Summary

Description

Section 17 - Exchange traded funds: in-specie applications and redemptions

Section Re-sequence

The APGs have been re-sequenced to group product related sections.

The section number of Exchange traded funds has been renumbered from “Section 22” → “Section 17”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current section 22 reference.

Summary

Description

Summary

Description

Section 18 - Warrants

Section Re-sequence

The APGs have been re-sequenced to allow for subsequent product sections to be grouped.

The section number of primary market facility has been renumbered from “Section 23” → “Section 18”.

Summary

Description

Summary

Description

Section 19 - Exchange traded Australian Government Bonds

Section Re-sequence

The APGs have been re-sequenced to allow for subsequent product sections to be grouped.

The section number of exchange traded Australian Government Bonds has been renumbered from “Section 29” → “Section 19”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current section 29 reference.

Merger of sub-section content from Section 29 - Exchange traded Australian Government Bonds

The following sections has been merged:

Removal of multiple sections from Section 29 - Exchange traded Australian Government Bonds

The following sections have been removed:

  • 29.5 - CHESS Subregister and Issuer Sponsored Subregister - This section was removed as Exchange Traded Australian Government Bonds cannot be held on the Issuer Sponsored subregister;

  • 29.11 - Claims for Maturity Proceeds - This information is no longer applicable to the CHESS Replacement System; and

  • 29.12 - Payments Free of Delivery (Miscellaneous Payments) - This information is no longer applicable to the CHESS Replacement System.

Summary

Description

Summary

Description

Section 20 - Claims for Entitlements

Name change

This section has been renamed from “Claims for entitlements (outside CHESS)” → ”Claims for entitlements” to reflect that the section has been expanded to include CHESS accrual instruction messaging management.

Section Re-sequence

The APGs have been re-sequenced due to this being an extensive refresh of the APG, the section number of claims for entitlements has been renumbered from “Section 15” → “Section 20”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current Section 15 reference.

Merger of sub-section content from Section 15 - Claims of entitlements (outside CHESS)

The following section has been merged:

Summary

Description

Summary

Description

Section 21 - Reporting

Section Re-sequence

The APGs have been re-sequence due to this being an extensive refresh of the APG, the section number of reporting has been renumbered from “Section 16” → “Section 21”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current section 16 reference.

New Sections added to Section 21

The following sections have been added:

Removal of multiple sections from Section 16 - Reporting

The following sections have been removed:

  • 16.5 - Frequently Asked Questions about Requesting Demand Reports - FAQs have been removed from the APG as they are captured on the technical documentation portal here;

  • 16.6 - CHESS Response Times for Demand and Standing Reporting - This information is no longer applicable to the CHESS Replacement System; and

  • 16.9 - Cancelling a Reporting Request - This information is no longer applicable to the CHESS Replacement System.

Summary

Description

Summary

Description

Section 22 - Issuer (registry) procedures

Addition of sections

Content from the following existing APG sections has been added:

Further details on DRP/BSP elections will be made available in a subsequent release.

Summary

Description

Summary

Description

Section 23 - mFund settlement service

Section Re-sequence

The APGs have been re-sequence due to this being an extensive refresh of the APG, the section number of mFund Settlement Service has been renumbered from “Section 28” → “Section 23”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current Section 28 reference.

New Sections added to Section 23

The following sections have been added:

Further details on the forms mentioned in this section will be made available in a subsequent release.

Removal of multiple sections from Section 23 - mFund Settlement Service

The following sections have been removed:

  • 28.7 - Income Statements - This information is no longer applicable to the CHESS Replacement System; and

  • 28.10 - Transfers between Fund Holdings - This information is no longer applicable to the CHESS Replacement System.

Summary

Description

Summary

Description

Section 24 - Foreign tax compliance

Section Re-sequence

The APGs have been re-sequence due to this being an extensive refresh of the APG, the section number of Foreign Tax Compliance has been renumbered from “Section 31” → “Section 24”.

For clarity, section references and comparisons to the current CHESS APG will continue to their current Section 31 reference.

Summary

Description

Summary

Description

Section 25 - Real Time Gross Settlement (RTGS)

Name Change

To align to CHESS Replacement RTGS functionality the following sub-sections have been renamed from:

Merging of sections

The following sections have been merged:

Removal of multiple sections from Guidance Note - Real Time Gross Settlement

The following sections have been removed:

  • 1.4 - Two CHESS DvP Settlement Types:  RTGS and Net Batch - This information is no longer applicable to the CHESS Replacement System;

  • 1.8 - Corporate Actions - relevant sections to CHESS Replacement System are covered in Section 11 - Corporate actions;

  • 2 - CHESS RTGS information for Banks - relevant sections to CHESS Replacement System are covered in 25.9 - Information Available to Banks About Participants’ RTGS Transactions.

    • 2.1 - Introduction;

    • 2.2 - Assumptions Concerning Bank Management of Client Participant;

    • 2.3 - Functionality in RITS Unchanged; Existing AIF Messages Used;

    • 2.4 - Net Position Record Settings and Cash Subrecord Settings;

    • 2.5 - Bank Credit Approval Across All Cash Subrecords;

    • 2.6 - CHESS RTGS Transactions in RITS; and

    • 2.7 - Setting Up AIF Arrangements in CHESS and RITS.

  • 3 - Net Position Record (NPR) and Cash Subrecord (CSR) - This information is no longer applicable to the CHESS Replacement System.

    • 3.1 - Background;

    • 3.2 - Creating a Net Position Record;

    • 3.3 - Changing a Net Position Record Attribute (Banks Only);

    • 3.4 - Removing a Net Position Record (Participants Only);

    • 3.5 - Creating a Cash Subrecord;

    • 3.6 - Changing Cash Subrecord Attributes; and

    • 3.7 - Removing a Cash Subrecord (Participants Only).

  • 4 - Creating an RTGS Settlement Instruction - This information is no longer applicable to the CHESS Replacement System.

    • 4.1 - Purpose;

    • 4.2 - Scheduling Transaction for Settlement: Authorisation and “Ready to Settle”;

    • 4.3 - Process Overview; and

    • 4.4 - Procedure to Create an RTGS Settlement Instruction.

  • 5 - Changing Attributes of an RTGS Settlement Instruction - This information is no longer applicable to the CHESS Replacement System.

    • 5.1 - Single-Sided Change: Maintain an RTGS Settlement Instruction;

    • 5.2 - Dual-Entry Change of RTGS Settlement Instruction; and

    • 5.3 - Cancelling a Change Request to an RTGS Settlement Instruction.

  • 6 - Authorising an RTGS Settlement Instruction for Settlement - This information is no longer applicable to the CHESS Replacement System.

    • 6.1 - Authorisation and “Ready to Settle”;

    • 6.2 - Purpose;

    • 6.3 - Process Overview; and

    • 6.4 - Procedure to Authorise an RTGS Settlement Instruction for Settlement.

  • 7 - Cancelling an RTGS Settlement Instruction - This information is no longer applicable to the CHESS Replacement System.

    • 7.1 - Purpose;

    • 7.2 - Process Overview;

    • 7.3 - Procedure to Cancel an RTGS Settlement Instruction; and

    • 7.4 - Procedure to Remove a Cancellation Request.

  • 8 - Change of Settlement Type - This information is no longer applicable to the CHESS Replacement System.

    • 8.1 - Purpose;

    • 8.2 - Process Overview;

    • 8.3 - Cut-Off Times for Change of Settlement Type;

    • 8.4 - Settlement Date;

    • 8.5 - Procedure to Change Settlement Type; and

    • 8.6 - Procedure to Remove Change Settlement Type Request.

  • 9 - Reporting - relevant sections to CHESS Replacement System are covered in Section 21 - Reporting

    • 9.1 - Summary of RTGS Reporting Available;

    • 9.2 - Cash Subrecord Totals (CST); and

    • 9.3 - Cash Subrecord Details (CSD).

  • 10 - RTGS Glossary - any terms which are relevant to CHESS Replacement System have been added to the Glossary.

  • 11- Appendices - This information is no longer applicable to the CHESS Replacement System.

    • 11.1 - Impact of Transactions on Net Position Record;

    • 11.2 - Effect of Debit Cap Limit on Transaction Processing;

    • 11.3 - Intrabank Settlements Effected in CHESS (as Recognised RTGS System);

    • 11.4 - AIF Messages and CHESS RTGS Transactions; and

    • 11.5 - Reporting Parameters and Procedure for Requesting a Report.