17/01
23 February 2001
Modernising Securities Settlement
Proposals to modernise securities settlement arrangements were set out in a consultation document published by the Treasury today. The changes will eliminate the gap between settlement and registration for securities settled in CREST. The draft legislation also supports plans by APACS, the Bank of England and CRESTCo to introduce payment for securities in central bank money.
Welcoming the proposals Economic Secretary, Melanie Johnson said :
Improving settlement efficiency and reducing risk will help keep UK financial markets at the forefront of international competition, and will keep costs for businesses to a minimum. I welcome the views of interested parties on how the proposals will affect them
NOTES TO EDITORS
- Media enquiries should be addressed to [Liane Farrer] at the Treasury press office on [020 7270 5188]
- The consultation closes on [11 May 2001].
- CRESTCo operates CREST, the City of London's electronic system for the settlement of securities.
- APACS (the Association for Payment Clearing Services) manages the main networks which allow UK banks and building societies to exchange payments on behalf of their customers. It also has responsibility for the co-operative aspects of money transmission and other payments-related developments.
Click on the link below for the text of the consultation documents.