Financial Services Industry Structure
The role of CREST, the meaning of T+2 settlement, DVP, and what CHAPS is used for.
Financial Services Industry Structure
The financial system depends on robust infrastructure to ensure payments are made safely and efficiently. This section covers the plumbing of the UK financial system.
True or false?
The financial system depends on robust infrastructure to ensure payments are made safely and efficiently
Payment Systems
Which term matches: "Operates BACS, Faster Payments and LINK ATM network"
What does "CHAPS" mean?
Type the term that means: "Operates BACS, Faster Payments and LINK ATM network"
Match each term in "Payment Systems" to its meaning
Tap a term, then tap its matching definition.
Financial Infrastructure
Which term matches: "Central bank; lender of last resort; operates CHAPS"
What does "CREST" mean?
Match each term in "Financial Infrastructure" to its meaning
Tap a term, then tap its matching definition.
Fill in the blank
______ — Primary market for equities
Settlement Systems
Which term matches: "Final transfer of funds/securities between parties"
What does "T+2" mean?
Type the term that means: "Final transfer of funds/securities between parties"
Match each term in "Settlement Systems" to its meaning
Tap a term, then tap its matching definition.
What the exam tests
The role of CREST, the meaning of T+2 settlement, DVP, and what CHAPS is used for.
True or false?
The role of CREST, the meaning of T+2 settlement, DVP, and what CHAPS is used for
Additional notes
Quick recap
Lock in the essentials before moving on.
True or false?
What does T+2 mean in the context of settlement? — Trades are settled two business days after the trade date
True or false?
What is the purpose of DVP in settlement? — To ensure securities and cash are exchanged simultaneously, eliminating the risk that one party delivers without receiving