Using multiple brokers - chess registration

[cuttlefish]

If you've got stocks bought via one broker and thus chess registered via that broker, can you sell them via another broker - or do you have to transfer them first - and if so, how long does a transfer take?

e.g. hypothetical scenario - you've bought a line of stock via broker A. On the day/time you want to sell them, broker A's systems are down and thus their phone lines are also clogged. You've got an account with broker B - can you use broker B to sell the shares bought via broker A, and if so, whats the process for doing it and do you need to contact broker A in some way before broker B can sell them for you?

 

[bvbfan]

Can't be done, need to have the stock as chess registered with selling broker.

I guess you could do a short sale if broker allows it and then phyiscal deliver the shares.

Chess is a joke, you get charged to transfer from broker to broker, may as well keep it as issuer sponsored if you can keep records

 

[rozella]

When you use marginlending, the marginlender is the chess sponsor, so you can use multiple brokers. I have had this arrangement for many years for exactly the reason cuttlefish states. (not that I have the need to switch from my prime broker for a long time as I have had very few dramas)

Of course the brokers involved must have a link to the marginlender, whether it be online or by phone, but this is sorted out well in advance.

 

[johenmo]

Did search but couldn't find what I wanted.

Using CommSec and am thinking of moving to IB as I want to use conditional orders and CommSec fees add more and more to the cost. I understand from another post/thread that IB doesn't use CHESS (Aust is only place).

So I have an HIN and PID and all that jazz.

Would someone explain in simple terms how it works if you use a broker (in this case IB) to buy and sell, and does CHESS have anything to do with it?

I am looking at staying in Oz stocks atm but including US stocks when I feel comfortable.

It'd be greatly appreciated.

 

[cutz]

Would someone explain in simple terms how it works if you use a broker (in this case IB) to buy and sell, and does CHESS have anything to do with it?

G'Day, IB doesn't use chess, trades are cleared by Fortis Clearing Sydney, you buy and sell via one of their platforms.

 

[johenmo]

G'Day, IB doesn't use chess, trades are cleared by Fortis Clearing Sydney, you buy and sell via one of their platforms.

Soooo.... Fortis acts for IB. OK Tks. Will contact IB and ask.
Thanks

 

[CanOz]

Soooo.... Fortis acts for IB. OK Tks. Will contact IB and ask.
Thanks

I'm not sure if this is quite right, but there should be more info in the Interactive Brokers thread. I know that in theory you don't actually own the stock with IB, so you don't get all those annoying records to file. Unless you trade ETFs in the US.

CanOz

 

[johenmo]

Tks CanOz.

I'm wondering whether to ditch CSec. The Chess thing seems to be "another thing" to manage.

Seem a strange concept that you buy yet don't own stocks. Goes against the traditional thinking.

 

[cutz]

Soooo.... Fortis acts for IB. OK Tks. Will contact IB and ask.
Thanks

G'Day

Info is on the website, Go to individuals >>accounts menu>>forms & disclosures>>disclosures tab>>3rd link from the bottom.

BTW i don't think Fortis acts for IB, they clear IB's trades (TBA)

Hope this helps.

Catch you later

 

[johenmo]

BTW i don't think Fortis acts for IB, they clear IB's trades (TBA)
Hope this helps. Catch you later

Tks. Will have a read then contact IB. It's pity they don't have a brochure or something that explains it all in plain english. Very few organisations do.

Cheers