Commentary

Anne Plested
Traders Magazine Online News

Bottlenecks Ahead

Anne Plested, head of Fidessa's EU Regulation Change programme, has written a short blog arguing that although we should be thankful that ESMA have taken a pragmatic approach to moving things along, more bottlenecks could appear in the future.

Traders Poll

Would you feel better if the Chicago Stock Exchange were purchased by U.S. firm or consortium rather than a foreign one?




Free Site Registration

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.