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Saxo adds CHESS on back of SMSF demand

Saxo Capital Markets has added the Australian Securities Exchange’s Clearing House Electronic Subregister System (CHESS) capability for Australian equities to its offering following strong demand from SMSFs and baby boomers.

As of yesterday, Saxo clients are able to hold Australian equities with the holder identification number (HIN) structure of CHESS in conjunction with the global securities available on the SaxoTraderGo and SaxoTraderPro platforms.

Saxo Capital Markets Australia chief executive Ben Smoker noted every other broker requires investors and traders to switch between accounts and platforms to access different asset classes and different solutions, which is an inefficient and cumbersome process.

“The HIN structure of CHESS is of particular interest to SMSF investors, who are more comfortable having the visibility of their holdings under their name as opposed to the omnibus account,” Smoker told selfmanagedsuper.

“We are adding this CHESS capability for Aussie equities because we saw a strong demand for this solution – especially from the baby boomers of investors and SMSF holders – to be delivered alongside the rest of our global securities offering.

“Physical notifications are sent directly by mail from CHESS and share registries of holdings, dividends and franking credits pertaining to their individual HIN numbers.”

The HIN structure for the Australian equities solution is powered by online stockbroking firm OpenMarkets as part of a reciprocal partnership established with Saxo in mid-2017.

As part of the alliance, Saxo also provides the market infrastructure to allow OpenMarkets to offer its own clients access to global equities under a white-label model.

“Our alliance is a good example of how a partnership approach works in practice for the benefit of the end customer,” Smoker said.

“Instead of investing heavily to build everything from scratch, companies can power each other, offering their respective capabilities in a win-win.”

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