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© 2011 International Monetary Fund

July 2011

IMF Country Report No. 11/236

United Kingdom: Observance by CREST of the CPSS-IOSCO Recommendations for Securities Settlement Systems Detailed Assessment of Observance

This paper was prepared based on the information available at the time it was completed on July 11, 2011. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of the United Kingdom or the Executive Board of the IMF.

The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.

Copies of this report are available to the public from

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International Monetary Fund

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Front Matter Page

Financial Sector Assessment Program Update

United Kingdom

Observance by CREST of the CPSS-IOSCO

Recommendations for Securities Settlement Systems

Detailed Assessment of Observance

July 2011

International Monetary Fund

Monetary and Capital Markets Department

Contents

  • Glossary

  • I. Summary, Key Findings, and Recommendations

    • A. introduction

    • B. Information and Methodology Used for Assessment

    • C. Institutional and Market Structure—Overview

    • D. Regulatory Framework—Overview

    • E. Main Findings

    • F. Recommended Action Plan and Authorities’ Response

  • II. Detailed Assessment

  • Tables

  • 1. Collation of Assessment Results by Assessment Category

  • 2. summary observance

  • 3. Recommended Action Plan to Improve Observance

  • 4. Additional Action Plan

  • 5. Detailed Assessment of Observance

  • Figures

  • 1. Euroclear Group Structure

  • 2. Exchanges, MTFs, and CCPs settling in CREST

Glossary

AIM

Alternative, Junior Equities Market

BCP

Business Continuity and Disaster Recovery Plans

BANK

Bank of England

CASS

Client Assets sourcebook

CDI

Dematerialized depository receipts

CMA

Cash Memorandum Accounts

CREST

Crest Securities Settlement System

CSD

Central Securities Depository

DBV

Delivery by Value

DIs

Depository interests

DTCC

Depository Trust & Clearing Corporation

DvP

Delivery versus Payment

ETT

Electronic Transfer of Title’

EUI

Euroclear U.K. & Ireland Limited

Euroclear

Euroclear SA/NV Group

FSMA

Financial Services Authority

FSA

Financial Services and Markets Act

HMT

Her Majesty’s Treasury

ICSD

International Central Securities Depository

MAC

Message Authentication Code

MiFid

Markets in Financial Instruments Directive

MMI

Money market instrument

MSCRA

Master Self-Collateralizing Repurchase Agreement

MTF

Multilateral Trading Facilities

MOU

Memorandum of Understanding

RCH

Recognized Clearing House

RSSS

Recommendations For Securities Settlement Systems

RUR

Register Update Request

RTGS

Real Time Gross Settlement

SFD

Settlement Finality Directive

SFR

Settlement Finality Regulations

SIS

SegaInterSettle

SLO

Stock loan

SSS

Securities settlement system

USRS

Uncertificated Securities Regulations 2001

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United Kingdom: Observance by CREST of the CPSS-IOSCO Recommendations for Securities Settlement Systems Detailed Assessment of Observance
Author:
International Monetary Fund