Holding and Transfer of Dematerialized Securities

Abstract This chapter examines the holding and transfer of dematerialized securities under the Uncertificated Securities Regulations 2001. It begins by defining key terms such as 'securities' and 'relevant system', highlighting the role of the Operator (Euroclear UK & Ireland Ltd) and system participants. The chapter then details the process by which securities are introduced into the CREST system, covering both shares and other securities becoming participating securities. It explores the implications of dematerialization, particularly the rise of nominee holdings and the increasing separation of legal and beneficial ownership. Finally, the chapter addresses the transfer of dematerialized securities, the legal mechanisms involved, and the application of the nemo dat quod non habet principle, emphasizing the need for register rectifications.