WASHINGTON -- The Federal Reserve Board on Monday proposed shortening the time customers are allowed to pay for securities or meet initial margin calls under Regulation T.

While not finished weighing possible changes in the rule, the Fed decided to go ahead with this proposal to bring bank rules in line with market practices. Keyed to Settlement Period Currently, Fed rules require payment within seven business days of the trade date, or two days beyond the standard settlement period of five business days. The Fed is proposing to amend Regulation T to change "seven business days" to "two business days after the standard settlement period."

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