Crest wins an eleventh-hour SIB reprieve
Tuesday 26 November 1996
The board's decision, after two hours of fierce cross-questioning of executives running the project, came after pressure from the City to put back the timetable to allow a catalogue of problems to be sorted out.
The critical factor in the decision to continue the present commissioning timetable appears to have been a favourable reaction from a meeting of all the main City regulators last Friday, convened by the Securities and Investments Board.
The regulators have the power to suspend or close Crest if settlement delays threaten the financial health of securities firms. Crest was set up on the initiative of the Bank of England as a replacement for the Stock Exchange's Taurus system which was abandoned after it had cost City firms pounds 400m.
CrestCo, the company which has taken over the project from the Bank, said the regulators' meeting "recognised the concerns of market-users but acknowledged both the recent improvements in Crest performance and CrestCo's commitment to the SIB that these would be maintained and developed."
On this basis there was no need "at this stage" to make further changes to the transition timetable - beyond those made by Crest itself last month. But the SIB would "continue to monitor the situation closely".
Crest's own changes gave a six-week breathing space from 2 December to mid-January in which loading of new securities on to the system will be slowed and then halted, while keeping to the April target for completion.
Scott Dobbie, chairman of CrestCo, said the board's confidence was helped by the fact that improvements to the system introduced last Friday were "planned, promised and also worked".
Iain Saville, CrestCo chief executive, said that a survey by the Securities and Futures Authority and the Stock Exchange found that three-quarters of firms supported a continuation of the timetable.
Mr Saville said Crest's share of the settlement market had risen from 25 to 40 per cent in two weeks and that the number of settlements achieved on the day intended had risen from 60 to 70 per cent in the last 10 days, compared with the 79 per cent at the Stock Exchange's old paper-based clearing system, Talisman. Crest hoped to match Talisman by mid-January.
- 1 Home Office says Nigerian asylum-seeker can’t be a lesbian as she’s got children
- 2 What happens to your body when you give up sugar?
- 3 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 4 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 5 Apple and Google users being spied on for a decade because of 'Freak' security flaw
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
Japanese island overrun with cats after population explodes
London property boom built on dirty money
Becky Watts: Stepbrother and his girlfriend named locally as two arrested on suspicion of murder
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...