Chapter 7 Flashcards
1
Q
What are the settlement stages?
A
- Trade matching - CREST is given details of the agreed trade. If input data from buyer and seller is identical crest creates a matching transaction.
- Stock settlement - CREST checks the seller has sufficient stock in their account and buyer has sufficient cash to settle.
- Cash settlement - CREST credits the selling member and debits the buyer. Irrevocable.
- Register update - operator register of securities is updated to show legal title to shares has changed. Issuer must then also amend their records.
Stages 2 to 4 happen simultaneously.
