Vanguard Group has scrapped a longstanding prohibition on mutual fund orders after 2:30 p.m., moving it to the standard 4 p.m. deadline, even though the industry has begun debating rolling that deadline up, according to The Wall Street Journal.
Vanguard originally imposed the ban to block market timers and other types of trading activities considered harmful to its shareholders but has since increased its use of short-term redemption fees restrictive trading guidelines to achieve the same goals.
As an example, Vanguard typically limits its mutual fund shareholders to four trades per year and has implemented internal systems to closely watch exchanges between funds.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.