26 August 2003

This information is provided courtesy of Law-Now, CMS Cameron McKenna's free on-line information service.

www.law-now.com

Dematerialisation of money market instruments

Currently, the issue, transfer and settlement of certain
money market instruments (MMIs) is carried out through the
Central Moneymarkets Office (CMO). It is proposed to
dematerialise (i.e. hold in uncertificated form) certain MMIs
including commercial paper (CP), certificates of deposit
(CDs) and bankers acceptances (BAs) and migrate these
MMIs from the CMO to the CREST system (one of the UK
recognised dealing houses approved by the Financial Services
Authority) by around the end of September this year.

The proposed dematerialisation of these MMIs will make a
fundamental difference to the way in which MMIs are created
and traded. The new system contemplates the creation of
eligible debt securities (EDS) which will be the
dematerialised equivalents of these MMIs.

Some key features of the new arrangements are:

* MMIs that are currently settled through the CMO will be
settled through the CREST system;

* the current CMO lodging agent will be replaced by a CREST
issuing and paying agent;

* an EDS will continue to have the same economic
characteristics as that of the material form;

* an EDS will be constituted and issued by an issuer as a
registered security and the register will be the electronic
records within the CREST system; and

* the CREST records will be definitive as to title and
ownership of an EDS.

For more information about dematerialisation of MMIs please
click on the link below:

http://www.law-now.com/CS2000/internet/EN/co50law-now/co55archive/2003/dematerialisationofmoneymarketinstruments

If you would like to discuss any issues in respect of the
dematerialisation of MMIs, please contact Jason Harding
in our Capital markets & derivatives team on 020 7367 3138
or by e-mail on jason.harding@cmck.com

=====================================
Disclaimer

CMS Cameron McKenna's principal office is Mitre House,
160 Aldersgate Street London EC1A 4DD. A list of the
partners' names and their qualifications is open for
inspection at that address. The partners are either
solicitors or registered foreign lawyers. We are regulated
by the Law Society.

This information has been prepared for subscribers to
Law-Now - CMS Cameron McKenna's free on-line information
service. The information and opinions expressed in all
Law-Now emails and our website www.law-now.com are not
necessarily comprehensive and do not purport to give
professional advice.

Further information about CMS Cameron McKenna can be found
on our website www.law-now.com
==============================