Last week the Irish Stock Exchange (ISE) introduced CREST Personal Membership, a new electronic way for private investors to hold shares. The stock exchange is working with CrestCo, the UK settlement system operator, on the service. Investors will now be able to hold their securities in an electronic account in the Crest system rather than in physical form with certificates. At the same time, the ISE has reduced the standard settlement period for equities traded on the exchange from five business days after the trade date to three.
The new CREST Personal Membership is an enhancement to the ISE's services aimed particularly at the private investor. The benefits of electronic shareholding compared with paper certificates are similar to the benefits of e-mail over the conventional postal system. Transactions can be processed faster and more easily. Clients will have less paper to worry about and will not have the inconvenience and expense of replacing lost transfer forms or certificates. The CREST system will also greatly facilitate investors wishing to deal online in Irish shares.
Private investors can establish CREST Personal Membership accounts through the Exchange’s stockbroking members. A full list and contact details for stockbroking firms is available on the Exchange’s website at http://www.ise.ie/stockbroking/frmembers.htm
The new settlement period will apply to all transactions conducted on the Irish Stock Exchange’s orderbook, ISE Xetra, and will also be the normal settlement period for non-orderbook transactions. A similar settlement period will operate for UK securities from the same date.
Brian Healy, the ISE's Director of Trading and Regulation, commented: 'The new move ensures that investors have full legal title to their purchases – or full title to the proceeds of any sales – 2 days earlier than is currently the case. This will improve the overall liquidity of the Irish equities market and, after the launch of the Exchange’s electronic dealing system last year, it represents a further step in enhancing the efficiency of trading in the equities market.'
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