Settlement procedures in UK

Question 1

LSE Equity settlement

Answer 1

On LSE, equity transaction is T+2 (trade plus 2 working days)

It is made through CREST, a computerised system which allows shares to be held in electronic form

Question 2

Gilt settlement

Answer 2

settlement period of T+1

also on CREST

Question 3

Settlement process

Answer 3

1. Trade cleared by central counterparty (LCH.clearnet) and CSD (intermediary holder of securities)

Process Begins:
2. Pre-settlement positioning - check buyer has the monies and seller the securities

3. Completion of transaction - transfer of monies and ownership.