Four 1990–1999
C H A P T E R
One of the SEC commissioners gave a speech and one of his catchy points was, “Nothing good can happen between trade day and settlement day.” The more you think about it, the more that is a profound statement about risk management in the securities business. If you have a trade, and then something happens to that security, the price drops in the second or third day, the person who bought it says, “I didn’t buy that from you. Don’t deliver it to me.” The more time between trade and settlement, the more opportunity for that kind of thing to happen.
Bill Jaenike DTC CHAIRMAN AND CEO 1994–1999
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