Wall Street gets ready to trade defaulted US debt

WASHINGTON: While most on Wall Street continue to believe it very unlikely the United Stateswill default on its debt later this month, banks and securities firms are already gearing up for how to handle any U.S. Treasuries tainted by missed payments.

The Securities Industry and Financial Markets Association, a trade group that represents hundreds of securities firms, banks and asset managers, has drawn up plans so that trading platforms can still process deals involving defaulted U.S. Treasuries, SIFMA Managing Director Rob Toomey said on Friday.