Commentary

Traders Magazine Online News

Spoofing, Surveillance and Supervision

Jay Biondo, Product Manager - Surveillance at Trading Technologies, co-authored an article along with James Lundy and Nicholas Wendland, both of Drinker Biddle & Reath LLP, reviewing the CFTC's regulations and expanding efforts, 21st century surveillance and supervision, as well as strategic recommendations.

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June 30, 2001

Rules Eyes As T+1 Settlement Moves Closer

By Gregory Bresiger

Officials of the National Association of Securities Dealers, the Securities Industry Association and the New York Stock Exchange were scheduled to meet this month to discuss what rules should be changed so they will be able to implement a T+1 settlement standard, which may be just a few years from reality.

Each organization has its own priorities in how regulators should mandate a one-day settlement standard.

Among the rules, says NYSE officials, that are likely candidates: Institutional transaction processing, which would include Rule 387 that covers cash-on-delivery orders; physical securities covered in Rule 226, settlement date rules, which are part of Rule 85. That's a rule that covers cabinet securities and Street side processing, which is part of Rule 412 and covers account transfers.

Some of the NASD's priorities for improving settlement procedures are said to include Rule 11320, which covers delivery dates. It is also interested in Rule 11620, which deals with interest computation, and Rules 11140 and 11150, which include ex-dividend processing.

The subjects that SIA wants the SEC to consider are: SRO date amendments, interoperability, in which a system can use parts of another system, and matching mandate, ensuring buyside and sellside trade terms are the same.