CISX becomes first exchange to provide OEIC settlement with Euroclear UK & Ireland

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Tuesday, 29 September 2009 16:26

The Market Authority of the Channel Islands Stock Exchange (CISX) has announced the availability of transaction settlement at Euroclear UK & Ireland for CISX-traded Open Ended Investment Companies (OEICs) with effect from 30 November 2009. The CISX has been trading OEICs since March 2005, and will now be able to offer listed issuers in UK-domiciled (including Guernsey and Jersey) OEICs transaction settlement at Euroclear UK & Ireland for transactions 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 the Chief Executive of the CISX, Tamara Menteshvili.

The CISX is the first exchange to make OEIC transactions available for settlement at Euroclear UK & Ireland, which will add immeasurably to the Exchange’s appeal to fund managers and investors alike. Tamara Menteshvili commented: 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.”