Robinhood Says Stock Settlement Times Are a Wall Street Risk (1)

Robinhood Markets is calling for change in the under-the-radar business that underpins vast parts of Wall Street, after the crisis that engulfed the brokerage in the past week.

The industry should cut the two-day stock settlement period to a real-time process, Robinhood said in a blog post Tuesday, arguing that the lag time was part of the problem in last week’s wild trading environment.

The statement coincides with a renewed, though less ambitious, push by the Depository Trust & Clearing Corp., which wants to move toward settling trades in one day instead of two, according to a person familiar ...