CI Stock Exchange secures a first with Euroclear deal
The Channel Islands Stock Exchange has become the first such facility to provide open-ended investment companies settlement with Euroclear UK & Ireland.
The exchange has been trading OEICs since March 2005 and will now be able to offer listed issuers in UK-domiciled OEICs, including those in Guernsey and Jersey, with transaction settlement at Euroclear UK & Ireland on or outside dealing days.
Euroclear UK & Ireland is the central securities depository for UK, Irish and Channel Island securities and already provides settlement and related services for a wide range of securities traded on the CISX.
Its extended coverage to include open-ended investment companies is hugely significant, according to CISX chief executive Tamara Menteshvili (pictured).
She said it would add to the exchange’s appeal to fund managers and investors alike.
‘Extending settlement of OEIC transactions to the proven capabilities of Euroclear UK & Ireland will revolutionise the open-ended funds sector by enabling investors to redeem and subscribe to shares electronically on or outside normal dealing days.
‘The move enhances the efficiency of the settlement process for investors and brings new opportunities, both for the exchange and the investment business sector within the Channel Islands. It will have particular significance for securities with monthly or less-frequent dealing days, such as in the open-ended property funds market.
‘It is a further example of the exchange’s innovative approach to exchange services.’
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