From mid September 2003, dematerialised MM instruments to be known as "eligible debt securities" (EDSs) will be available in the UK markets. EDSs will be issued in electronic form, with title to them being recorded in an electronic register. Settlement will be via the CREST system.
An EDS can be issued on terms which correspond to physical Certificates of Deposit (CDs), Commercial Paper (CP) or bankers’ acceptances (bills). The aim is to increase efficiency through straight-through processing.
Apart from changing from paper to electronic media this should necessitate no other changes to bank agreements.
The ACT has representatives on both the Sterling Money Markets Liaison Group and the Foreign Exchange Joint Standing Committee at the Bank of England. Further information on dematerialised MM instruments, which includes guidance notes for issuers, can be found on the Bank of England website.