Sub-custody guide: UK
The UK market has undergone significant market and
regulatory change during 2014. The most prominent change was the shortening of
the trade settlement cycle for Crest instruments from T+3 to T+2 in October
2014, as required by CSDR.
From a product perspective, an increasing number of fund
managers enabled settlement of their collective investment schemes in Crest.
Regulatory developments included the AIFM directive, CRD IV (Capital
Requirement Directive), Dodd-Frank and Fatca.
“Looking ahead, the UK will continue to face further market
and regulatory challenges including proposed changes to the Bank of England’s
real time gross settlement (RTGS) infrastructure aiming to extend the Chaps and
Crest settlement day, full dematerialisation of the market and UK banking
reform regulation,” says Alistair Jones, head of custody Europe at HSBC
Securities Services.
The UK was one of 22 markets in Europe to adopt a T+2
settlement cycle, which Julien Kasparian, head of sales and relationship
management at BNP Paribas Securities Services describes as one of the most
important initiatives in European securities markets since the euro conversion.
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