Oct 18, 2012
• DTCC Connection
Brokers urged to speed up US share trades
Stephen Foley, Financial Times
Summary
Investors
and
brokers are
being
urged to
cut
the
time
it
takes
to
settle
U
S
equity
trades,
a
modernising
move
that
could
have
its
biggest
impact
on
sleepy
regional
stockbrokers and on
investors
who
prefer
paper stock
certificates.
Two
industry - run
groups are
trying
to
forge
a
consensus
to
reduce
settlement times,
for
fear
that
the
current
three-day
cycle is
an
unresolved
source
of
risk
to
the
financial
system.
The
initiative
could
run into
opposition
from
broker-dealers
who wish
to
avoid
investing
in
the required technology,
particularly
given
the
other
changes already
demanded
of
them
by
the
Dodd-Frank
Wall
Street reform.
Download the Congressional Testimony: Brokers urged to speed up US share trades