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Conference nyoss1::market_investing

Title:	Market Investing

Moderator:	2155::michaud

Created:	Thu Jan 23 1992
Last Modified:	Thu Jun 05 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1060
Total number of notes:	10477

868.0. "Shorter (T+3) Settlement Day is Dawning" by NETRIX::michaud (Jeff Michaud, That Group) Wed May 31 1995 01:44

	Well the new T+3 Settlement deadline is almost upon us.  This
	is going to be interesting.  Some are saying depending on how
	well/bad this shorter settlement date works out, the eventual
	result could be the SEC imposing a T+1 settlement date :-(

T.R	Title	User	Personal Name	Date	Lines
868.1	Express Mail == Oxymoron	ASDG::HORTON	Paving the Info Highway	`Wed May 31 1995 19:41`	13
	T+1...what a concept! Let me guess...the SEC has received a guarantee from the Postal Service that all mail marked "Urgent: Securities" will be expedited and delivered by 10:00 a.m. the next day...yeah, and on those rare occasions that mail is delayed the USPS will reimburse you for trading losses, extra brokerage fees, etc.
868.2		NETRIX::michaud	Jeff Michaud, That Group	`Wed May 31 1995 20:27`	14
	Re: .1 One of the main reasons for the shortened settlement is that the SEC wants to prevent a bunch of failed settlements in the case of a market crash (or something like that). With T+1 everyone will have to either buy on margin or have cash in account, or EFT transfers for purchases, and on sales, either the securities should be in brokers hands in street name (ie. you'll never see the paper) or you turn securities over to broker before you intend to trade. From my understanding options and some other securities already have a T+1 settlement.