Exchange nominee pool to ease paper chaos

Press, Volume CX, Issue 32425, 12 October 1970, Page 20

Exchange nominee pool to ease paper chaos

The Melbourne Stock Exchange last week broke new ground with the introduction of a system of bearer securities to replace normal transfer procedures—an attempt to end the paper chaos which accumulated with the mining boom.

The exchange has virtually set up a nominee pool of scrip in heavily traded companies, which will issue bearer scrip to brokers for trading purposes. It is believed to be the first time such a system has been set up by an Australian exchange. The chairman of the Melbourne exchange (Sir Cecil Looker) said the department had been established to help companies speed up the processing of transfers and the issue of scrip, and to facilitate quicker settlement of transactions in heavily traded stocks. The service would begin lin a limited number of companies next Monday through the exchange’s nominee company, Sen Pty, Ltd. When securities were registered into Sen, brokers would receive “broker bearer documents” (BBDs), from the exchange and these would be valid delivery between member firms without accompanying transfers. When member firms holding BBDs requifed securities to be registered in the names of their clients, the BBDs would be returned to the exchange for cancellation and the issue of certified transfers.

Sir Cecil said details of the new service would be forwarded to listed mining companies.

After the initial period it was expected the service would be extended from a limited number to all milling companies. Sir Cecil said he believed

this would result in a considerable reduction in the number of transfers lodged with companies for registration, and would ultimately enable selling clients to obtain speedier settlements. Mr N. K. Matthews, formerly with Nylex Corporation, Ltd, has been appointed manager of the nominee services. Another appointment announced by the Melbourne exchange was Mr J. H. Molony, as manager of data processing. The chairman of the Sydney Stock Exchange (Mr J. H. Cooper) said last night that the question of the speeding up of transfers and

documentation was a matter which had caused great concern to all exchanges, both in Australia and overseas, in the last two years. “The Sydney Stock Exchange recently sent its senior executive abroad to study the problem, and the matter is still receiving our attention,” Mr Cooper said. “Although the steps taken by the Melbourne Stock Exchange may be of some benefit, it does not appear to me that this goes very far towards providing a solution to this problem,” he added. DIVIDENDS DUE THIS WEEK Auiilm.—lnt 6 p.c. (Sept. 23) .. Oct. 12 Dental Med.—Final 74 p.c. (Sept. 28: .. Oct. 12 Woolworths (N.Z.). Final 44 p.c. (Sept. ■ 14) Oct. 15 Cons. Gold.—Final 8 p.c. Oct. 16 C.R.A—lnt. 7 p.c. (Sept. 16) .. Oct. 16