Thanks A4 You are right they do say so: (my italics)....... Settlement is conducted through the Clearing House Electronic Sub-register System (CHESS), which operates a Model 3 Delivery versus Payment (DvP) multilateral net batch settlement mechanism, exchanging cash for securities irrevocably.CHESS also registers the title (ownership) of shares on its sub-register. Both this sub-registry service and the fact that it is included within standard settlement fees are unique to Australia.The sub-registry service provides key benefits to brokers, investors and issuers: For brokers, it reduces risk in facilitating settlement through expediting both the movement of securities in preparation for settlement and the timely allocation of shares to client accounts post settlement.
What is irrevocable is that once the transaction reaches CHESS finality is ensured. I am presuming brokers are on the hook to provide the promised cash.
ISX Price at posting:
$1.07 Sentiment: Hold Disclosure: Held
