Securities and Exchange Commission Chairman William Donaldson said regulators are moving swiftly to curtail trading abuses in the mutual fund industry.

Speaking before the Securities Industry Association on Friday, Donaldson told members of the trade association that the SEC will convene in the coming weeks to discuss setting a firm 4 p.m. deadline for mutual fund trade orders. The cutoff would effectively put a stranglehold on illegal late trading, an abuse that infects more than 10% of all mutual funds, he said (see this week’s edition of Money Management Executive).

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