London Stock Exchange chief executive Clara Furse has outlined the LSE's plans to offer network provision to UK depository Crest.
Speaking at the annual conference of private client investment managers (Apcims), Furse drew attention to a four-point programme of change for the UK equities market.
In the infrastructural arena, Furse elaborated on the exchange's plans to offer Crest network provision in the coming year, which will effectively mean that brokers will be able to access the LSE and the settlement system through one electronic link. This could reduce message trafficking costs by as much as 40-50 per cent, says Furse. Industry wide, the exchange's research shows that it could save up to £15 million per annum.
The market for Crest network provision is being opened up to allow more competition to incumbent providers Syntegra and interbank network Swift. The LSE will be among a raft of new entrants to the market when the Syntegra/Swift duopoly is ended later this year. Other prospective providers include Energis, Radianz, and Californian messaging provider SlamDunk Networks.
Furse also referred to the exchange's RSP Gateway initiative, which aims ultimately to connect all brokers and all RSPs, delivered - significantly - on a utility basis.