Building Freetrade

Pre-launch testing with CREST

Freetrade Team

February 14, 2018

Freetrade Team

We will be using CREST to settle all trades in UK equities, as well as the “source of truth” against which we reconcile stocks held by our customers.

You’ve probably caught on our social media we are conducting tests. We thought we’d unpack what exactly we are doing, and why it’s important for the launch!

We will be using CREST to settle all trades in UK equities, as well as the “source of truth” against which we reconcile stocks held by our customers.

So, what is CREST?

It’s the central securities depository for markets in UK and Irish stocks.

Essentially, it records the ownership of shares traded on the UK&I markets in an electronic (dematerialised) form, which means there is no physical share certificate.

The CREST is also an electronic trade confirmation and settlement system, that allows market participants to confirm the details of a trade and to settle the trade on a delivery vs. payment (DvP) basis. That is to say that the cash is transferred simultaneously to the delivery of the securities.

What is the Freetrade team exactly testing?

Over a three day period, we are running some pre-launch testing with CREST.

It’s basically testing the connection between our systems and CREST, and running through the full trade lifecycle with c. 30 dummy trades.

Why is this testing important?

Our connection to, and ability to communicate with CREST, is vital to our UK equities trades.

This three day testing period will allow us to check that everything is working the way we expect it to, and to iron out any hiccups we encounter.

When the app launches everything should run perfectly, with minimal human intervention, providing our users with the experience we’ve promised.

The roll-out is around the corner

The above means the day is getting close! We’ll be adding users in small groups, starting with around 100 when we start.

You can see your position on the waiting list by entering the email you’ve registered with on our site.

~Rob, Head of Finance

Important Information

This should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice.

When you invest, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future results.

Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

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