Mr. CousinTo ask the Chancellor of the Exchequer what plans he has to introduce legislation to control share settlements systems, with particular reference to control of the exposure of holdings by market makers.
§ Mr. NelsonSecurities settlements systems are already governed by legislation, notably the Financial Services Act 1986 and the Companies Acts. New, computerised securities settlements systems such as CREST will require changes to the existing law. The Treasury is preparing regulations under section 207 of the Companies Act 1989 to allow such systems to operate. These regulations will not affect existing arrangements regarding control of the exposure of holdings by market makers.