Press releases 2001

02 February 2001

INTRODUCTION OF T+3 STANDARD SETTLEMENT PERIOD

The London Stock Exchange and CRESTCo today confirm the introduction of T+3 standard settlement period, with effect from Monday, 5 February 2001. The adoption of T+3 will apply to domestic equities and fixed interest securities traded on the London Stock Exchange. The change follows the London Stock Exchange's earlier consultation with market participants when nearly 80 per cent of respondents favoured a move to a shorter settlement period.

Chris Broad, Head of Broker Services at the London Stock Exchange, said: "The move to T+3 settlement will mark a significant step in enhancing the efficiency of trading on our markets. The shorter settlement cycle will assist in risk reduction, bring London into line with other international securities markets, and bring into clearer focus the benefits to private investors of holding their shares in paperless form."

Toby Davies, Head of Domestic Settlement Policy at CRESTCo Ltd, said: "The increased efficiency and risk reduction of shorter settlement cycles means that investors who trade frequently should now think about the advantages of electronic holdings."

Notes to editors:
T+3 will be the period in days that elapses before share settlement is due or paid. It stands for transaction day plus three business days. This will be the standard period for settlement in the UK market, which takes place on a rolling basis.