Fidelity Investments is working with
Securities Clearing Corp. to develop a central clearinghouse for
mutual-fund trades, the New York Times reported on its Web site,
citing company officials.
Such a clearinghouse could be an alternative to a Securities
and Exchange Commission proposal that illegal late trading be
prevented by not allowing brokers and other intermediaries to
submit customer orders to fund companies after 4 p.m., the
newspaper said.
Boston-based Fidelity, the largest U.S. fund company, is
working with Securities Clearing, a unit of Depositary Trust and
Clearing Corp., to transform an existing fund-order processing
service at the clearing corporation into the kind of time-stamped
system that would satisfy securities regulators that no illegal
late trading was taking place, the newspaper said.
At the same time, the clearinghouse would allow brokers to
submit customer orders that were received before 4 p.m. after
that deadline, the Times reported.
Bloomberg News
