Article Abstract:
The London stock market is seen as fragmenting and the launch of Tradepoint is seen as an indication of this. Tradepoint is a share market based on computers which permits bokers to deal with each other directly. This cuts costs and means that market makers are not needed. Market makers are not permitted to display better prices on Tradepoint than on the SEAQ screen of the Stock Exchange, though this restriction could be lifted. There are fears that the market share of the Stock Exchange could be affected.
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Article Abstract:
A new share settlement system called Crest has been launched in the UK in Jul 1996 and users have complained about the software system. The software will be tested by nine companies in July, with further trials planned for Aug. Participants will continue to use the system while it is being tested. There has been a less than wholly enthusiastic response to the system which attracted 14 stockbrokers on its first day. The system has already been tested for three months in 1996.
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Article Abstract:
A stock settlement system called Crest has been introduced in the UK and has involved major investments in software by stockbrokers. Private investors can choose to retain stock certificates, use nominee accounts, or join Crest as a sponsored member. There are concerns about nominee accounts because investors lose direct links with the companies they invest in. Only some 600 sponsored Crest members have emerged, though this option could become more popular.
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