Dictionary
Financial Glossary
|
 |
| Glossary
> C
> "CREST" Definition |
 CREST
The paperless share settlement system through which trades executed on our markets can be settled. CREST is operated by CRESTCo, and was introduced in 1996. See Settlement.
CREST is CrestCos real-time settlement system for UK and Irish shares and other corporate securities. From 1999, CrestCo will also take ownership of government bond and money markets settlement in the UK.
Crest is an electronic system of settlement for the equities market in the UK and Ireland which was set up in 1996 to replace the Stock Exchange"s Talisman system.For the 1,000 largest companies on the London and Irish markets, Crest matches trades against payments and tells the company"s registrars what names to add to the share register and which ones to delete. It does away with the need for endless shuttling of paper certificates.If you don"t want the hassle of share certificates, you can opt into Crest by having your shares registered in the name of a nominee service offered by your broker. Many online brokers will only deal with clients who are willing to adopt the nominee system.Your broker sets up a special company called "XYZ Nominees Ltd".Ownership of all client shares is registered to the company, and the company holds the share certificate, but beneficial ownership is recorded in your name.The broker sets up internal systems to ensure that you get the dividends, and that your account statement correctly shows your portfolio holdings.You do not normally get the other shareholder benefits - e.g. shareholder perks, reports and accounts - but some brokers can make special arrangements so that you do.You can also become a member of Crest personally which enables you to deal directly with Crest without having to use a nominee account. You still don"t get share certificates but you do get the shareholder benefits that are otherwise denied to you.To become a member of Crest you have to be sponsored by a broker, who will be charged Ј20 p.a. by Crest, and who may pass the charge on to you. In April 2002, the London Stock Exchange became the first independent CREST sponsor, allowing investors to have an electronic account with the LSE whilst being able to deal through their own broker.The key thing about using a nominee account is:It shortens settlement times, which is a good thingIt should lead to lower dealing costsThere is a potential for fraud, which makes it important that you use a broker who has appropriate insurance cover. (ask!)
|
|
Glossary 
|
|
|
|
CREST - The paperless share settlement system through which trades executed on our markets can be settled. CREST is operated by CRESTCo, and was introduced in 1996. See Settlement.
CREST is CrestCos real-time settlement system for UK and Irish shares and other corporate securities. From 1999, CrestCo will also take ownership of government bond and money markets settlement in the UK.
Crest is an electronic system of settlement for the equities market in the UK and Ireland which was set up in 1996 to replace the Stock Exchange"s Talisman system.For the 1,000 largest companies on the London and Irish markets, Crest matches trades against payments and tells the company"s registrars what names to add to the share register and which ones to delete. It does away with the need for endless shuttling of paper certificates.If you don"t want the hassle of share certificates, you can opt into Crest by having your shares registered in the name of a nominee service offered by your broker. Many online brokers will only deal with clients who are willing to adopt the nominee system.Your broker sets up a special company called "XYZ Nominees Ltd".Ownership of all client shares is registered to the company, and the company holds the share certificate, but beneficial ownership is recorded in your name.The broker sets up internal systems to ensure that you get the dividends, and that your account statement correctly shows your portfolio holdings.You do not normally get the other shareholder benefits - e.g. shareholder perks, reports and accounts - but some brokers can make special arrangements so that you do.You can also become a member of Crest personally which enables you to deal directly with Crest without having to use a nominee account. You still don"t get share certificates but you do get the shareholder benefits that are otherwise denied to you.To become a member of Crest you have to be sponsored by a broker, who will be charged Ј20 p.a. by Crest, and who may pass the charge on to you. In April 2002, the London Stock Exchange became the first independent CREST sponsor, allowing investors to have an electronic account with the LSE whilst being able to deal through their own broker.The key thing about using a nominee account is:It shortens settlement times, which is a good thingIt should lead to lower dealing costsThere is a potential for fraud, which makes it important that you use a broker who has appropriate insurance cover. (ask!)
CREST : the paperless share settlement system through which trades executed on our markets can be settled. crest is operated by crestco, and was introduced in 1996. see settlement.
crest is crestcos real-time settlement system for uk and irish shares and other corporate securities. from 1999, crestco will also take ownership of government bond and money markets settlement in the uk.
crest is an electronic system of settlement for the equities market in the uk and ireland which was set up in 1996 to replace the stock exchange"s talisman system.for the 1,000 largest companies on the london and irish markets, crest matches trades against payments and tells the company"s registrars what names to add to the share register and which ones to delete. it does away with the need for endless shuttling of paper certificates.if you don"t want the hassle of share certificates, you can opt into crest by having your shares registered in the name of a nominee service offered by your broker. many online brokers will only deal with clients who are willing to adopt the nominee system.your broker sets up a special company called "xyz nominees ltd".ownership of all client shares is registered to the company, and the company holds the share certificate, but beneficial ownership is recorded in your name.the broker sets up internal systems to ensure that you get the dividends, and that your account statement correctly shows your portfolio holdings.you do not normally get the other shareholder benefits - e.g. shareholder perks, reports and accounts - but some brokers can make special arrangements so that you do.you can also become a member of crest personally which enables you to deal directly with crest without having to use a nominee account. you still don"t get share certificates but you do get the shareholder benefits that are otherwise denied to you.to become a member of crest you have to be sponsored by a broker, who will be charged Ј20 p.a. by crest, and who may pass the charge on to you. in april 2002, the london stock exchange became the first independent crest sponsor, allowing investors to have an electronic account with the lse whilst being able to deal through their own broker.the key thing about using a nominee account is:it shortens settlement times, which is a good thingit should lead to lower dealing coststhere is a potential for fraud, which makes it important that you use a broker who has appropriate insurance cover. (ask!)
