Explanatory note

The Bank of England and the Stock Exchange have established a computer-based system, known as the CGO Service, to facilitate the transfer of gilt-edged securities. Membership of the new system derives from a contract with the Bank. These Rules, which amend the Exchange of Securities (General) Rules 1979, provide that an acceptance of an offer of exchange of securities need not, in the case of a holding of a CGO Service member, be accompanied by the Bond Book or certificate of title, if at the time of acceptance the holding could be transferred by the member through the CGO Service.

As a result of other Regulations coming into force on 2nd January 1986 simultaneously with these Rules, members of the CGO Service will be able to transfer almost all gilt-edged securities managed by the Bank of England through the new system. Those Regulations are: the Stock Transfer (Gilt-edged Securities) (CGO Service) Regulations 1985 (S.I. 1985/1144), the Stock Transfer (Gilt-edged Securities) (Exempt Transfer) Regulations 1985 (S.I. 1985/1145), the Government Stock (Amendment) Regulations 1985 (S.I. 1985/1146), the Gas (Stock) (Amendment) Regulations 1985 (S.I. 1985/1149), and the Local Authority (Stocks and Bonds) (Amendment) Regulations 1985 (S.I. 1985/1148).