CrestCo and the London Stock Exchange have re-confirmed that the standard settlement period for trades in UK and Irish equities and corporate debt will reduce to T+3 with effect from 5 February 2001. This will apply to trades conducted on the London Stock Exchange, the Irish Stock Exchange, Tradepoint and the exercise of Liffe equity option contracts.
Toby Davies, head of domestic settlement policy at CrestCo comments: "Shortening the settlement cycle is a major contribution to risk reduction in securities markets in London and Ireland. We believe that all areas of the market are well-prepared for the introduction of T+3 in one month’s time."
The move to T+3 settlement was first announced in May 2000. All members of the LSE, Liffe, Tradepoint and the Irish Stock Exchange were notified of operational and regulatory impacts and rule amendments in November and December 2000, says CrestCo.