CREST announced that it settled 73.4 million transactions in 2001, a rise of 26% on volumes in 2000, Turnover increased by 29% to 63.2 trillion. CREST also settled a record daily volume of over 480,000 transactions during the year.
Membership of the CREST system increased to over 40,000, with the addition of more than 15,000 Personal Members.
During 2001, CRESTCo significantly improved the standards of risk reduction in the UK market to world-leading levels. In particular:
On 5 February 2001, T+3 was successfully introduced in the London and Irish stock markets – settlement rates now exceed 97% on due date.
On 26 February, CRESTCo together with the London Clearing House and The London Stock Exchange, launched a central counterparty service offering London securities markets the full advantages of post-trade anonymity, further deepening the liquidity of London equity markets for the benefits of all investors.
On 26 November, CREST introduced two new services which delivered full Delivery versus Payment (DVP) for London securities markets. The introduction of Electronic Transfer of Title (ETT) now provides buyers with immediate and irrevocable legal title to dematerialised securities, at the point of transfer in CREST. And payment in central bank money ensures the final and irrevocable transfer of central bank money, in sterling or euros, between payment banks for all transactions.
Iain Saville, the Chief Executive of CREST, said “2001 saw CREST process record volumes, record values and also deliver a world leading programme of risk reduction and efficiency measures for the benefit of our customers. 2002 will see us continue this work, delivering services, such as settlement netting, which are designed to make our customers lives simpler and cheaper.”