Euroclear UK & Ireland has extended its settlement day for direct participant banks to 6pm.
The securities depository operates the CREST settlement system in the UK and Ireland, including the Channel Islands and Isle of Man.
The extension of the settlement day comes after a review by the Bank of England, and intends to align the CHAPS and CREST settlement day with the business hours of participants.
It will allow for greater flexibility, as banks will be able to set later transaction deadlines. It could include high-value payments and balance sheet investment and funding decisions.
John Trundle, CEO of Euroclear UK & Ireland, said: “There is a growing global trend for financial services to be available for longer business hours. We are pleased to help the payments industry offer longer hours, in particular by facilitating the collateral movements which support their payments activity.”
The change is expected to come in to effect in summer next year.
