Elgar Financial Law and Practice series
Chapter 16: USE OF SECURITIES HELD IN THE CREST SYSTEM AS COLLATERAL
Euroclear UK & Ireland Ltd (‘EUI’) is the operator of the CREST securities settlement systems for the UK, Republic of Ireland, Jersey, Guernsey and the Isle of Man. CREST permits the holding and settlement in uncertificated form of corporate and government securities traded on UK and Irish regulated markets and the Channel Islands Securities Exchange, as well as UK money market instruments and UK and other domestic securities traded over-thecounter. CREST also facilitates the indirect holding and settlement of eligible international securities held in or through an international central securities depository (an ‘ICSD’) or a central securities depository (‘CSD’) with which EUI (directly or indirectly) operates its ‘International Settlement Links Service’. As part of that service, CREST Depository Interests (‘CDIs’) may be issued into CREST by a wholly owned subsidiary of EUI (CREST Depository Ltd or ‘CDL’) and subsequently transferred through the system. CREST is a vital part of the infrastructure of the UK and other domestic financial markets. The daily average value of securities held in the CREST system in July 2015 was in the order of £4.6 trillion. Daily average securities movements were £787 billion (of which £388 billion related to autocollateralisation). Daily average cash CREST movements were £588 billion (of which £243 billion related to auto-collateralisation). CREST supports settlement in euro and US dollars as well as in sterling.
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