Euroclear UK & Ireland, the CSD operator of the CREST settlement system in the UK, is extending its settlement day for direct participant banks with effect from summer of 2016.
The decision to extend the settlement day to 18:00 follows a review by the Bank of England in its role as settlement agent for the major pound sterling payment and settlement systems, CHAPS and CREST respectively. The objective is to better align the CHAPS and CREST settlement day with the typical business hours of many participants of these systems.
John Trundle, CEO of Euroclear UK & Ireland, commented: “There is a growing global trend for financial services to be available for longer business hours. We are pleased to help the payments industry offer longer hours, in particular by facilitating the collateral movements which support their payments activity. We therefore plan to align our operating hours with those now proposed for the CHAPS payment system.”