SEC Rule 15c6-1: Regular-Way T+1 Settlement Standard
Under the amended SEC Rule 15c6-1 (effective May 2024), what is the regular-way settlement timeframe for standard secondary market transactions in corporate equities, corporate bonds, and municipal securities?
Under SEC Rule 15c6-1, regular-way settlement for equities, corporate bonds, and municipal bonds transitioned from T+2 to T+1 (one business day after trade date). A trade executed on Monday settles on Tuesday.
Complete Analysis & Legal Rationale
U.S. Government Treasuries and standard options trades also settle on T+1.
Distractor Autopsy (Why Other Options Are Traps)
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T+1 is the mandatory regular-way settlement cycle under current SEC rules.
T+2 was the previous rule superseded in May 2024.
T+3 is the Reg T payment due date (S+2), not securities settlement.
Same-day settlement is 'cash settlement', not regular-way.
Official Standard: Shortened the standard settlement cycle from T+2 to T+1 business day.