By Julian Goldsmith, 14 September 1998 18:06
NEWS Electronic settlement company Crestco has announced today that it plans to make its system more Euro-friendly. The charges for trades in continental European shares over Crest - the electronic settlement system the company operates for the London Stock Exchange - is to be reduced in line with domestic trades. Additionally the company is seeking links with other European electronic settlement systems. It announced an agreement with Sega, the Swiss settlement system, to forge a common link by the end of 1999. More significantly, the company is also in discussions with the Deutsche Borse for a similar facility to compliment the alliance between the Frankfurt exchange and the London stock exchange. The moves are intended to cut the cost of settling foreign securities, resulting from having to negotiate a number of electronic interfaces to overseas settlement systems. They also are an acknowledgement of the continuing convergence of European stock markets. Investors have reacted positively towards the move, but noted that it would not encourage pan-European investment unless ordering and settlement was made easier. A spokesman for Charles Schwab, said: "Provided both ordering and settlement is slicker, then it is likely to open up the market to investors. The move is bound to have an influence on the success of the alliance between the London and Frankfurt stock exchanges."
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