2.1.4.2 Same Day vs. Regular Way Settlement
Settlement refers to the process whereby a security is paid for and transferred to a new owner. In a trade, the settlement date is the date that buyers are expected to pay for the securities they purchased and sellers are expected to deliver the securities they sold.
Treasury securities and options settle one business day after the trade (T + 1). Regular way settlement applies to other types of bonds and all stocks, and occurs two business days after the trade (T + 2). Cash or same-day settlement occurs the same day as the trade and appl