Mutual fund companies and other investment firms are not prepared for the SEC's forthcoming "T+1" requirement that they clear and settle trades within one day of the initial trade, fund industry executives said.

Fully aware of the obstacles, costs and the challenges of T+1, the SEC does not expect to enforce the T+1 regulation until 2004, said Dan Michaelis, assistant vice president for corporate communications at the Securities Industry Association. The association, the trade organization of financial technology service providers, and the Global Straight Through Processing Association are working with the SEC on T+1.

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