CREST definition

CREST is the electronic settlement system for securities traded in the UK and Ireland. Its name stands for Certificateless Registry for Electronic Share Transfer, and it acts as the central securities depository that records who owns what.

CREST settles trades in shares, gilts, and other eligible securities without paper certificates. Instead of issuing a physical certificate, it holds ownership in electronic form and updates the record when a buyer and seller settle, which lifts settlement speed and cuts operational risk.

CREST is operated by Euroclear UK & International, part of the wider Euroclear group that runs settlement systems across Europe. It handles the post-trade stage, after a deal is agreed on an exchange such as the London Stock Exchange, so it works behind the scenes rather than in the trading you see on screen.

CREST Example

You buy 1,000 shares of a company listed on the London Stock Exchange.

Once the trade is executed, CREST settles it electronically.

Your account receives the 1,000 shares in electronic form, and the seller receives the cash. No paper certificate changes hands, because CREST records the transfer digitally.