| WASHINGTON, March 16
WASHINGTON, March 16 U.S. securities regulators
are poised to shorten the amount of time it takes for a
securities trade to settle, from three to two business days, in
an effort to reduce credit and market risk exposure.
The Securities and Exchange Commission announced it will
hold a public meeting to vote to adopt a final rule next
Wall Street is largely in favor of shortening the amount of
time it takes from the time an investor's order is executed to
when cash and ownership of the security are exchanged.
Consumer groups are also supportive of the effort, though
some would prefer to see it shortened even more to just one day
to help further reduce risks.
The current settlement cycle required by SEC rules has not
been updated since 1993.
(Thomson Reuters Corp, the parent company of
Reuters, previously submitted a comment letter to the SEC in
support of the proposal to shorten the settlement cycle to two
(Reporting by Sarah N. Lynch; Editing by Paul Simao)