The Channel Islands Stock Exchange (CISX) is now able to provide transaction settlement at Euroclear UK & Ireland for CISX-traded open ended investment companies (OEIC). The settlements will start from November 30. 2009.

CISX has been trading OEICs since March 2005. Under the new arrangement it will be able to offer listed issuers in UK-domiciled locations, including Guernsey and Jersey, OEIC transaction settlement at Euroclear UK & Ireland for transactions on or outside dealing days.

Euroclear UK & Ireland is the central securities depository for UK, Irish and Channel Island securities. It already provides settlement and related services for a wide range of securities traded on the CISX.

"The CISX is the first exchange to make OEIC transactions available for settlement at Euroclear UK & Ireland," said Tamara Menteshvili chief executive of CISX.

"Extending settlement of OEIC transactions to the proven capabilities of Euroclear UK & Ireland will revolutionise the open-ended funds sector by enabling investors to redeem and subscribe to shares electronically on or outside normal dealing days. The move enhances the efficiency of the settlement process for investors and brings new opportunities, both for the Exchange and the investment business sector within the Channel Islands," commented Menteshvili.

The service is particularly useful for securities with monthly or less frequent dealing days such as in the open-ended property funds market.

Euroclear UK & Ireland, a wholly-owned subsidiary of Euroclear, offers real-time securities settlement for Irish, UK, Jersey, Isle of Man, Guernsey and international securities. Euroclear is the world's largest provider of domestic and cross-border settlement and related services for bond, equity, derivatives and fund transactions.

The CISX provides a listing facility and screen-based trading. It concentrates on specialist securities, including, eurobonds, structured debt, warrants and special purpose vehicles; investment funds; primary and secondary listings of securities and shares issued by Channel Islands' companies; primary and secondary listings of securities and shares issued by overseas companies; and Channel Islands depository receipts.CISX has admitted over 3300 securities to the official list and has more than 50 members, including trading members in London as well as in the Channel Islands.