Euroclear Consults on CREST Settlement Finality in Complex Transactions

Euroclear UK Ireland, operator of the CREST system for UK and Irish uncertificated securities, is seeking guidance from market participants on the treatment of complex transactions for settlement finality purposes, following discussions with the Financial Services Authority and the Bank of England. In particular, Euroclear is encouraging industry feedback and views on the current approach to determining the point at which a transfer order for a transaction enters a CREST-designated system. This issue is especially significant as the protections of the EU Settlement Finality Directive are generally restricted to transfer orders attributable or addressed to an insolvent participant before formal insolvency proceedings are instituted.

Comments on the consultation paper should be submitted by December 14, 2012.