Market Profiles

RBC IS operates a omnibus account structure in this market for Lending clients.
For further information or support around accessing this market, please contact your RBC IS representative.

RBC IS operates a segregated account structure in this market for Non-Lending clients.
Whilst no documents are required in this market, it is prudent to hold on record client documents to show the legal existence of the client in case the agent or the country regulator requests it.
For further information or support around accessing this market, please contact your RBC IS representative.

Client Notice

Please note not all financial instruments and exchanges listed below are available as an RBCIS product offering. Please consult our Terms & Conditions or reach out to your RBCIS representative for further details.

London Stock Exchange (LSE)
LSE is the main platform for dealing in securities in the UK. The LSE is broken down into the Official List which is the Main Market on which the majority of shares are traded; the Alternative Investment Market (AIM); the Professional Securities Market (PSM - for specialist securities) and the Specialist Fund Market (SFM - for specialist investment funds) and Turquoise, a European multilateral trading facility, majority owned by the London Stock Exchange Group. 

London Metal Exchange (LME)
The London Metal Exchange is the world centre for the trading of industrial metals with more than three quarters of all non-ferrous metal futures business transacted on the LME’s platforms. In 2015 this equated to US$12 trillion notional and 4 billion tonnes. In addition to acting as the central counterparty for the Central Counterparty for Equities Service, (LCH EquityClear), the London Clearing House (LCH) acts as central counterparty for trades executed by its members on the, the London Metal Exchange (LME), the International Petroleum Exchange (IPE), as well as many Multilateral Trading Facilities along with certain classes of over-the-counter products, specifically interbank interest rate swaps (LCH SwapClear) and repo and cash trades in European government bonds and Pfandbriefe (LCH RepoClear).

SIX Swiss Exchange
SWX Europe Limited was acquired by SIX Swiss Exchange Ltd. In 2009. SWX Europe Limited, a cross-border equities exchange, provides crossborder trading, clearing, and settlement services for securities. It focuses on consulting with the London trading community to develop trading models and services. The company also provides admission to trading, electronic order book trading, and trade reporting services in Swiss securities, pan-European securities, and exchange traded funds. In addition, it offers central counterparty service for cross-border trading and non-displayed liquidity/block trading service for Swiss equities. SWX Europe Limited was formerly known as virt-x Exchange Limited and changed its name to SWX Europe Limited in March 2008.

PLUS Markets Group was a UK electronic stock exchange based in London for small cap companies that was acquired by ICAP in 2012 and rebranded as Icap Securities and Derivatives Exchange (ISDX).[2] It was a market operator under MiFID Markets in Financial Instruments Directive, and was both a regulated market and a multilateral trading facility.

PLUS Market Group was the holding company for PLUS Stock Exchange (PLUS-SX), PLUS Derivatives (PLUS-DX) and Plus Technology (PLUS-TX). It provided cash trading, listing, derivatives and technology services. After the group got into financial trouble in 2012 it looked for ways to sell the business. The exchange, containing all the listed companies and the exchange license, was sold to ICAP and the technology division was sold to Forum Trading Solutions.

Euronext.LIFFE
Euronext is Europe’s leading cross-border exchange, integrating trading and clearing operations on regulated and non-regulated markets for cash products and derivatives. The London International Financial Futures and Opens Exchange (LIFFE), merged with Euronext in 2002. It was created to offer its participants increased liquidity and lower transaction costs. Liffe (the acronym for the London International Financial Futures Exchange), was formed in London in 1982. Liffe was acquired by Euronext in 2002 following which Euronext consolidated all of its derivatives trading operations under the Euronext.Liffe name. Its parent, Euronext NV, was subsequently acquired by the New York Stock Exchange in 2007 whereupon Liffe became known as NYSE Liffe. NYSE Liffe together with NYSE Euronext were acquired by ICE (Intercontinental Exchange) in November 2013. All futures and options trading is transacted on the Liffe Connect electronic trading platform with clearing provided by ICE Clear Europe.

The Stock Exchange Automated Quotations (SEAQ) - SEAQ is London Stock Exchange's non-electronically executable quotation service that allows market makers to quote prices in AIM securities (not traded on SETS or SETSqx) as well as a number of fixed interest securities.

The Stock Exchange Trading System (SETS) - SETS is the London Stock Exchange’s flagship electronic order book, trading FTSE100, FTSE250, FTSE Small Cap Index constituents, Exchange Traded Funds, Exchange Trading Products as well as other liquid AIM, Irish and London Standard listed securities. The Exchange also operates a version of SETS on a modified trading cycle that supports Securitised Derivatives.

Functionally rich with multiple order types, market maker support all the way up the book, SETS is one of the most liquid electronic order books in Europe. It is this liquidity, underpinned by a rigorous rulebook and market supervision, coupled with the widest stock coverage, that attracts so many participants creating unrivalled opportunity to do business. Market participants can choose from 2 competing clearers ensuring anonymous pre and post trading, along with full counterparty protection.

The Stock Exchange Trading system for Money Market – (SETSmm)
SETSmm is the LSE's trading service for mid-cap securities. SETSmm is used for all FTSE 250 securities not already traded on SETS, FTSE Small Cap and FTSE AIM50 securities, dual listed Irish securities, commodity based debt securities and Exchange Traded Funds. SETSmm is an electronic order book supported by continuous liquidity provision from market makers. 

(SETSmm no longer features among the trading services on the LSE website so suggest removing the above section).

Stock Exchange electronic Trading Services quotes and crosses (SETsqx)
SETSqx (Stock Exchange Electronic Trading Service – quotes and crosses) is a trading service for securities less liquid than those traded on SETS.

SETSqx combines a periodic electronic auction book with standalone non-electronic quote driven market making. Electronic orders can be named or anonymous and for the indicated securities order book executions will be centrally cleared.

The auction uncrossings are scheduled to take place at 8am, 9am, 11am, 2pm and 4:35pm.  An execution in the final auction will set the security’s closing price for the day and generate a Closing Price Crossing Session, which provides a further trading opportunity to execute business at the closing auction price.

There are 2 types of order book model for SETSqx depending on whether the security has registered market makers providing non-electronic quotes.  The model in operation determines which Time in Forces are valid for the electronic orders and how these orders are publically displayed ahead of the scheduled uncrossing.   Please see the SETSqx Factsheet for full details.

International Order Book
An electronic order book for trading Global Depositary Receipts from some of the world's fastest growing markets.

The Stock Exchange Alternative Trading Service (SEATS Plus) – SEATS Plus is the electronic trading service for the less liquid Main Market and Aim securities. It offers basic order driven execution capabilities with guaranteed liquidity provided by market makers. (SEATS Plus no longer features among the trading services on the LSE website so suggest removing the above section).

Monday to Friday 08:00 - 16:30 GMT

ISIN (International Securities Identification Number) - Yes.

SEDOL - The Stock Exchange Daily Official List number, a code used by the London Stock Exchange to identify foreign stocks, especially those that aren't actively traded in the U.S. and don't have a CUSIP number (the sedol code can be used to identify UK stocks as well).

The Financial Conduct Authority (FCA) -The Financial Conduct Authority (FCA) is an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000. They are a company limited by guarantee and financed by the financial services industry. It regulates the financial services industry in the UK and has been given a wide range of rule-making, investigatory and enforcement powers in order to meet four statutory objectives:

• market confidence: maintaining confidence in the financial system;
• public awareness: promoting public understanding of the financial system;
• consumer protection: securing the appropriate degree of protection for consumers; and
• reduction of financial crime: reducing the extent to which it is possible for a business carried on by a regulated person to be used for a purpose connected with financial crime.

The Prudential Regulation Authority (PRA)

The PRA is responsible for the prudential regulation and supervision of approximately 1,700 banks, building societies, credit unions, insurers and major investment firms

The PRA has three statutory objectives:

1. - a general objective to promote the safety and soundness of the firms it regulates;
2. - an objective specific to insurance firms, to contribute to the securing of an appropriate degree of protection for those who are or may become insurance policyholders; and
3. - a secondary objective to facilitate effective competition.

The PRA advances its objectives using two key tools. Firstly, through regulation, it sets standards or policies that it expects firms to meet. Secondly, through supervision, it assesses the risks that firms pose to the PRA’s objectives and, where necessary, takes action to reduce them.

The London Stock Exchange - provides the structure and regulates the operation of the markets, supervises the conduct of member firms dealing in the markets and provides trading and information services.

Primary Market - controls admittance of securities to the Official List, with the exception of gilt-edged securities, and enforces compliance with rules governing listing obligations.

Secondary Market - responsible for supervising and monitoring secondary market activity in six separate secondary markets: Alternative Investment Market, Covered Warrants Market, Domestic Equity Market, Gilt-edged and Fixed Interest Market, International Equity Market and Traditional Options Market.

The Bank of England - The Bank of England is the central bank of the United Kingdom. The Bank is committed to promoting and maintaining monetary and financial stability as its contribution to a healthy economy. The Bank of England manages the UK's foreign exchange and gold reserves and has two core purposes - monetary stability and financial stability. Interest rates decisions are taken by the Bank's Monetary Policy Committee.

Most UK equities and debt are registered instruments which will normally be dematerialised on the books of the registrar for the purpose of book-entry settlement in the Euroclear UK and Ireland Limited system, or, to a lesser extent, physically represented by certificates held in custodians' vaults.

Money Market and Fixed income instruments are held in dematerialised, book entry registered form.

The UK and Ireland successfully moved to a T+2 settlement cycle on October 6, 2014.

GBP, EUR & USD

OTC stocks tend to be those of companies that do not meet the listing requirements of the London Stock Exchange, although some companies that do meet the listing requirements choose to remain as OTC stocks. These are generally used in the derivative market.

Book-Entry: Equities, gilts and money market instruments can all settle through Euroclear UK & International Limited. Both buyer and seller enter trade instructions into Euroclear UK & International Limited where the details are pre-matched. If pre-matched, securities and cash are transferred electronically between the seller's account and the buyer's account on settlement date. All Euroclear UK & International Limited eligible UK securities transfers are by Electronic Transfer of Title. Both Euroclear UK & International Limited & Registrar will hold an electronic record of each security holding. GBP, EUR & USD are the only currencies which can settle in Euroclear UK & International Limited.

Settlement timeframes:

Equity free of payment: SD 18:00 GMT
Equity against payment: SD 15:45 GMT
Gilt free of payment: SD 18:00 GMT
Gilt against payment: SD 15:45 GMT

SETTLEMENT DISCIPLINE
Fines are issued by Euroclear UK & International Limited to ensure that
member firms continue to monitor and improve their matching and
settlement performance.

Matching fines - at the rate of £2 per day for every day the trade remains unmatched - are incurred when an individual trade is not matched in Euroclear UK & International Limited by the close of business on T+1. The fine is always levied to the last party to input their instruction to achieve a match.

Settlement fines are levied on the settlement performance of the Euroclear UK & International Limited participant as a whole and are calculated as shown below:

The fine bands listed above correspond to days, i.e. 0 = Settlement Date, 1 = SD + 1 etc..
Therefore, on the Settlement Date, the Euroclear UK & International Limited participant must settle at least 85% of their trades and the day after, on Settlement Date +1, they must have settled at least 90% of their trades etc.

Physical: Physical trades are also known as Residuals. The shares will be in physical form rather than electronic. 
Shares are exchanged for payment directly with a broker/counterparty outside of Euroclear UK & International Limited. The share certificate and transfer form are sent to the registrar for re-registration which normally takes between 10 and 15 working days.

The FCA has announced that the disclosure requirements for significant net short positions in the stocks of UK financial sector companies will remain in place indefinitely. Disclosure must be made if a net short position exceeds 0.20% of a relevant firm's issued shared capital, with further disclosure required if there are changes of 0.1% in the position (i.e. at 0.30%, 0.40% etc.). A relevant public disclosure threshold is a percentage that equals 0.5% of the issued share capital of the company concerned and each 0.1% above that.

Effective November 1, 2012, the relevant authority must be notified by investors of the short position of shares and government debt when the position reaches or falls below the levels specified in the regulation. The relevant authorities are the local Financial Supervisory Authorities (FSAs). 

The short positions of shares must also be disclosed to the public by posting information on the local FCA's website when a position reaches or falls below the specified levels. 

For full information of the new regulation and reporting requirements please visit the European Securities and Markets Authority website at http://www.esma.europa.eu/.

Possible same day for book entry.

LCH - in December 2003, the London Clearing House (LCH) merged with Clearnet (the sole clearing house for Euronext equities and derivative markets) to create a central counterparty of choice for all categories of assets (Derivatives & Futures).  The LCH clears trades in equities, exchange traded derivatives and commodities traded on the following international exchanges and trading platforms: Endex, Euronext (including Euronext.LIFFE), the Intercontinental Exchange, the International Petroleum Exchange (IPE), the London Metal Exchange (LME), the LSE, Powernext, EDX London, and SWX Europe. The LCH can also clear interest rate swaps, bonds and repos traded on international OTC markets, including BrokerTec and MTS.

SIS x-clear - Part of SIX Group Limited, the Swiss infrastructure provider. It serves the Six Swiss Exchange and the LSE, providing an alternative to LCH.

EuroCCP - The Dutch headquartered clearing house with a London branch that was formed in late 2013 as a result of the merger of former clearing houses EuroCCP Limited and EMCF N.V. In the UK EuroCCP is a Recognised Overseas Clearing House regulated by the Bank of England. It started to serve the LSE from October 2015, providing another alternative to LCH.

Euroclear UK & International Limited has free of payment direct links with the following International Securities Depositories: DTCC (FOP link United States), SIX-SIS (Switzerland) and Euroclear Bank (FOP link). Euroclear UK & International Limited also has indirect links with the following countries: Australia, Austria, Belgium, Canada, Clearstream Banking Luxembourg, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Portugal, Spain and Sweden.

BIS is an international organisation which fosters cooperation among central banks and other agencies in pursuit of monetary and financial stability. The Committee on Payments and Market Infrastructures (CPMI) uses three common structural approaches, or models, to categorise the links between delivery and payment in a securities settlement system.

Not currently applicable to this market.

Book-Entry: Held at various UK Registrars. Will also be reflected at Euroclear UK & Ireland Limited if securities are Euroclear UK and Ireland Limited eligible. Records are adjusted immediately. Euroclear UK and Ireland Limited maintains aggregate records for each participant while the sub custodian maintains individual client records. Euroclear UK and Ireland Limited holdings represent the legal record for UK equities and gilts, money market instruments (MMIs) and Euroclear UK and Ireland Limited Depository Interests (CDIs).

Physical/Residual: Held at various UK Registrars. Nominee registration is common and can take from two to six weeks depending on correct documentation and volume levels at the Registrars, this can be longer due to volumes. If a sale is pending, application can be made to the registrar to accelerate registration for a fee, however this cannot be guaranteed. This is not a service provided by all registrars.

Various UK Registrars. Capita, Computershare and Equiniti are the three main registrars).

Book-Entry - immediate

Physical - two to six weeks

Share holdings may be required to be disclosed by the beneficial owner, particularly when holdings reach or exceed prescribed disclosure limits. Investors must ensure that they comply in full by reporting such holdings to the appropriate organizations for this market, within the timeframe required. If you have any questions regarding this issue we encourage you to consult your legal counsel. 

Failure to comply with reporting requirements may lead to penalties and/or other sanctions.

Acquisitions that meet or exceed 3% of a company's issued share capital must be reported to the company and the regulator by the shareholder within two business days. 

Investors must also notify any subsequent percentage point increase or decrease in ownership. Investors failing to provide the above notifications are guilty of an offence.

An investor or investment manager, who controls in excess of 10% of the voting rights in a public company, must make a declaration to the company within two business days of acquisition.

Acquisitions of 29.9% or more must also be disclosed and accompanied by a formal tender offer.

In addition, Section 793 of the Companies Act 2006 empowers a company to require an investor, whom it knows or has reasonable cause to believe, as having an interest in the company's ordinary shares, to confirm that fact and to give further information as requested by the company. Investors failing to comply with these requirements may lose dividend and voting rights. 

Further information about disclosure requirements may be found in Chapter 5 of the FCA's Disclosure Rules and Transparency Rules.

The clearing houses for the UK stock exchanges, including the London Stock Exchange (LSE), have announced new buy-in rules with effect from November 1, 2012.

The rules will automatically shorten the period between the Intended Settlement Date (ISD) and the buy-in. The buy-in deadline is ISD+4, with the buy-in initiated on ISD+5. The clearing house may adopt slight variations.

The clearing houses which act as central counterparties (CPP's) for the UK market are LCH, SIX x-clear and EuroCCP N.V..

It is RBC Investor Services understanding that brokers will reserve the right to pass the buy-in costs onto their clients if the buy-in is caused by the client's inability to deliver.

The rules also stipulate the imposition of failed settlement charges for each day from ISD to buy-in date. For example LCH will charge: Fixed payment of £25 per fail per day, plus variable ad valorem charge (calculated as trade value x reference interest rate + 1%) applied to the number of business days.

Securities lending is permitted for both domestic and international investors, subject to HMRC approval.

Lenders can be any UK or foreign Institution whose portfolio is not actively traded, eg. pension funds, life companies, insurance companies and, more recently, authorised unit trusts. Lenders retain all beneficial rights of ownership with the exception of voting rights.

Lending of domestic equities and bonds must be conducted through an authorised stock borrowing and lending intermediary. International equities and bonds can be lent to either an authorised stock borrowing and lending intermediary, a broker dealer or an overseas institution.

Instruments generally accepted as collateral within the UK market are:

• Against UK Gilt and Equity Lending

Other Gilts (Delivery by Value) through Euroclear UK and Ireland Limited; Certificates of Deposit through Euroclear UK and Ireland Limited. Eligible and Treasury bills are also acceptable.

(CGO and CMO no longer exist)

• Against International Lending

Mainly Letters of Credit, usually denominated in a variety of the major currencies and Overseas Corporate and Government Bonds. Sterling instruments such as those mentioned above are also used.

The Financial Services Compensation Scheme (FSCS) is the UK's statutory fund of last resort for customers of regulated financial services firms. This means that the FSCS can pay compensation to consumers if a firm is unable, or likely to be unable, to pay claims against it. The FSCS is an independent body set up under the Financial Services and Markets Act 2000 (FSMA).

Under the FSCS rules, there are limits to the protection the FSCS can provide:
The scheme was set up mainly to assist private individuals, although some smaller businesses are also covered. Larger businesses are generally excluded, although there are some exceptions to this (in particular, for compulsory insurance) 
The FSCS can pay compensation only if an authorised firm is unable, or likely to be unable, to  meet the claims against it 
There are limits to the amounts of compensation the FSCS will pay, and such compensation only covers financial loss; hence, for investment claims, the compensation paid will try to return the investor to the financial position he would have been in had he not invested

Maximum compensation limits for each person per authorised firm
Deposits - GBP85,000 per person per firm (for claims against firms declared in default from 2018/2019)
Investments - GBP50,000 per person per firm (for claims against firms declared in default from 1 January 2010-31 March 2019)

Money Laundering rules & regulations come from 4 sources;

1. The Proceeds of Crime Act 2002 – this relates to criminal property that has arisen from criminal conduct. Criminal conduct is anything which is an offence in the UK.
2. The Money Laundering Regulations 2003 – more detailed regulations that have been implemented as the result of EU Directives, predominantly dealing with the requirements for systems & training to prevent money laundering and to check the identity of new customers.
3. The FCA has rules & guidance on the way anti-money laundering provisions are implemented in the UK financial services industry.

The Joint Money Laundering Steering Group (JMSLG) Guidance Notes - these are provided by a combination of UK trade associations including the British Bankers Association (BBA), the Council of Mortgage Lenders (CML) & the Association of British Insurers (ABI). The notes provide detailed guidance on how their member firms should implement anti money laundering provisions. Although they are not mandatory, they do highlight industry good practice.

None

Foreign ownership is generally restricted in national defence, shipping, communications, telecommunications, air transportation, automobile manufacturing and public utilities. Each company's board of directors has discretion to determine foreign ownership limits.

The registrar monitors investment limits when shares are presented for registration. If the maximum ownership limit has been reached, certificates will not be registered.

Companies may impose restrictions on corporate actions for foreign investors requiring that the custodian forward a Sophisticated Investors Letter (SIL) to the registrar. The registrar then submits the SIL to the company to overcome the restrictions

A small number of UK securities allow a particular percentage of foreign ownership. This will be specified on execution of trade and will be reflected in Euroclear UK and Ireland Limited upon settlement. The holding is then reflected at the Registrar.

There are no restrictions on the remittance or repatriation of funds.

N/A

Through Euroclear UK & International Limited for Equities, Gilts, Stock Loans, DBV's & MMI's

CHAPS; BACS; Faster Payments; Cheque and Credit Clearing Company

CREST members need to appoint a CREST Settlement bank, which will be responsible for the cash movements, associated with purchases and sales. These banks control the amount of credit they extend to investors s in CREST by the use of debit caps. There may be separate caps for unsecured credit and where the participant holds stock as principal credit secured by a floating charge over stock held in specified accounts. As part of the settlement process, CREST measures the effect of transactions to ensure that they would not result in a debit cap being breached. Since 2001, payment can be in one of two forms.

For payments in relation to settlements in CREST versus euro or sterling considerations, each settlement is accompanied by a simultaneous, final and irrevocable transfer of central bank money between the payment bank acting for the buyer and the payment bank acting for the seller. This removes the theoretical risk to an investor arising from the failure of his counterparty’s settlement bank. This cash transfer takes place across the account of the payment bank at the Central Bank and is therefore deemed to be irrevocable.

For payments in relation to settlements in CREST versus euro or sterling considerations, each settlement is accompanied by a simultaneous, final and irrevocable transfer of central bank money between the payment bank acting for the buyer and the payment bank acting for the seller. This removes the theoretical risk to an investor arising from the failure of his counterparty’s settlement bank. This cash transfer takes place across the account of the payment bank at the Central Bank and is therefore deemed to be irrevocable.

Yes

Once a dividend is announced, the Stock Exchange sets an Ex-date, usually on a Thursday, and the registrar sets a record date, usually one business day after Ex-date on a Friday.

It is not necessary for holders to collect income on registered securities, since the registrar automatically remits interest and dividend payments to the registered owner or, if the owner so directs the registrar by the issue of mandating instruction, to a third party. The registered owner may be an individual, institution or nominee.

Entitlement to income is determined by the name of the holder, on the register at the close of business on the record date. Entitlements are calculated on traded positions at ex date.

Shares are traded with their dividend (cum dividend) up to the ex date, which is usually one day before the record date. After the ex date, they are traded without their dividend (ex dividend) until the record date. However, the two parties to the trade may choose to override the convention and trade "special", that is, without the dividend when the market convention is to trade cum dividend or vice versa. 

Income is paid on the payment date. There is no fixed period between the record and payment dates.

Quarterly or Semi-annual

Semi-annual

Actual/365-day basis

Corporate action dates are defined as follows:

• Ex-date: Date set by stock exchange, which determines who is entitled to participate in the issue.
• Record: Date the company takes details of registered holders from the company register in order to send out documentation.
• Pay date: Date issue closes, shares are allocated, payment is made (if applicable).

Entitlement is based on the settled position as of Record Date. Protection will be afforded if available, as long as the T/D is on or prior to the actual expiration date of the event and provided the trade is booked in the system and instructions are received.

This facility can be processed through Euroclear UK & International Limited. Unrestricted voting rights

No

Provided in English. Annual general meetings and extraordinary general meetings are announced three weeks to three months in advance.

On request, subject to availability

On request, subject to availability

Not required

N/A

with effect from April 6, 2016, UK sourced dividends will no longer carry a notional 10% tax credit. 

Non-residents are subject to 20% withholding tax on the property investment distribution (PID) portion of dividends paid by UK REITS, although non-resident investors domiciled in countries having a double taxation agreement with the UK may be eligible for treaty rates via a reclaim.

20% 

0% for short term interest, bank interest, interest from UK government obligations and discounted securities.

Non-resident exempt

Capital gains realised by non-UK residents are not subject to UK capital gains tax provided that the gains do not relate to the assets of a UK branch or agency of a non-UK resident carrying on a trade or profession in the UK.

For all UK securities, 0.5% on the trade value, rounded up to the nearest GBP 5, is payable by the buyer when beneficial ownership changes. For all Irish securities, this is 1% and all ADR's attract 1.5%. Transactions on the Exchange attract a GBP 5 stamp tax when there is no change in beneficial ownership. Gilts are exempt as are non-convertible loan stocks and foreign stocks (unless registered on a register in the UK). For trades executed on the Exchange, the stamp duty is included in the settlement amount.

Stamp Duty Reserve Tax (SDRT) is also levied at 0.5% of the consideration but, unlike Stamp Duty, it is not rounded up to the nearest GBP 5 but rather it is rounded up or down to the nearest penny. Investors are most likely to encounter SDRT liability when transferring securities within Euroclear UK & International Limited.

Please note that the charge of 1.5% Stamp Duty Reserve Tax (SDRT), which is attached to new issues of chargeable securities into a clearance service within the European Union (EU), will no longer apply. However, HM Revenue & Customs (HMRC) have indicated that legislation will be brought forward to ensure that securities movements between different systems “still bear their fair share of tax”. Full details of HMRC’s announcement can be found at the HMRC's website. Clients are encouraged to liaise with their own tax advisors to ascertain the impact of this announcement upon their own business.

“The transfer of securities in Euroclear UK & International Limited is subject to Stamp Duty or Stamp Duty Reserve Tax (SDRT). The electronic stamp duty system, Euroclear UK & International Limited, covers both the UK and Irish markets, The standard tax rate applied to trades through Euroclear UK & International Limited is 0.5%, whereas for cross-border trades the rate is 1.5%. Transactions in the Irish market are charged at a flat rate of 1%”.

None

United Kingdom Holiday Calendar

• London Stock Exchange londonstockexchange.com
• Bank of England bankofengland.co.uk
• Financial Conduct Authority http://www.fca.org.uk/
• Euroclear UK & International Limited euroclear.com/
• London Clearing House lch.co.uk
• London Metal Exchange lme.com
• SWX Europe sixeurope.com
• LIFFE www.euronext.com