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.

Traders Poll

Is the adoption of electronic trading in fixed income on par of that in the FX sector?




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November 1, 2001

Next Day Unsettled

By Gregory Bresiger

The three-day securities processing standard could be safe for another year.

Next day transaction processing - the so-called T+1 - could be delayed by one year. It should now become effective in June 2005, the Board of Directors of the Securities Industry Association has recommended to the Securities and Exchange Commission.

"The industry remains committed to straight-through processing leading to T+1," according to Donald Kittell, executive vice president of the SIA. However, he conceded that this "less aggressive pace" is needed so firms can "complete critical technology projects." He added that the events of Sept. 11 emphasize the need for more extensive straight-through-processing as well as the reduction of manual processing of trading information and the physical movement of check payments and securities.

Industry Testing

The new schedule would mean that those securities firms that expect to be ready for T+1 must be ready by the middle of 2004. They would be required to participate in a full year of testing so they could certify that they would have the technological infrastructure to meet the new standard in 2005.

Securities transactions now clear and settle in three business days after the transaction. The new T+1 standard - when it becomes effective - would mean trades would clear and settle on the next business day.