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This issue:

  • Same Day Stock Loan Returns
  • Dividend Payment Functionality
  • SFL Simulator Functionality

Euroclear are changing : “Same Day Stock Loan Returns” – November 2024

Currently Stock Loan Returns (SLRs) are able to settle the business day after the Stock Loan (SLO) has settled. Euroclear have just announced as from Monday, 18 November 2024 , SLRs (Stock Loan Returns) will be able to settle on the same day the SLO (Stock Loan) settles. Clients will still need to raise the priority from zero for settlement to occur. this change is being introduced to ensure the CREST system is ready to support the need for intraday borrowing that may increase with the move towards T1 settlement.

This change is driven by the desire to align transactions more closely with market practices, thereby enhancing liquidity and risk management for clients and aims to enable Euroclear UK & International clients to book and return stock lending activities within the same day. This will eliminate the current waiting period until the following business day for returning borrowed stock.

The CREST Simulator will have any new changes in place well ahead of it going LIVE, enabling you to test your back office system thoroughly.

Dividend Payments and The Simulator

Since 2004, Euroclear has offered functionality that enables payments of funds, i.e. dividends on equities, interest and redemptions on gilts and corporate debt securities (together referred to as ‘Payments’), via the CREST system.

Issuers and their agents (hereafter referred to as registrars) can transmit electronically both the payment and the tax voucher/dividend confirmation in a single message, providing a streamlined distribution mechanism. Electronic transmission improves efficiency and substantially reduces the risk inherent in sending paper-based payments.

This is currently an optional service, and whilst a growing number of issuers and CREST participants do make use of this functionality and benefit from the efficiencies it brings; there are some that have yet to do so.

The CREST Simulator supports the generation of both PAY and USE transactions in our corporate action benefit processing options. This will allow you to receive the benefits via either transaction type and test that your back office system is compatible with both.

SFL Simulator Functionality

Did you know you can use the SFL simulator to :

  • Settle trades intraday ahead of any settlement date
  • Run corporate actions intraday
  • AutoMatch trades  – using SFL special counterparties to aid your testing
  • Perform vigorous volume testing with the ability to match all your allegations
  • Use our SimGUI to match/settle/delete transactions as well as buy/sell stock from/to our counterparties
  • Ask for support in your testing via prompt responses from our experienced email support desk

Any Suggestions?

If there is anything that you would like to see added to the CREST Simulator or its functionality then please let us know. We are always open to adding any enhancement that you feel would benefit your testing. Likewise if you have specific testing projects on going, then we can develop bespoke scripts and upload functionality in conjunction with yourselves to speed up and enhance your testing experience.

For any assistance with your testing requirements or to discuss how the simulator could be used to enhance your back office system development then please contact support@sfl.co.uk