SEC Rule 15c6-1: Regular-Way T+1 Settlement for Equities, Munis, and Corporates
Under the amended SEC Rule 15c6-1, what is the standard regular-way settlement timeframe for secondary market transactions in corporate equities, corporate bonds, and municipal securities?
Under SEC Rule 15c6-1, regular-way settlement for corporate stocks, corporate bonds, and municipal bonds is Trade Date plus ONE business day (T+1).
Complete Analysis & Legal Rationale
Effective May 2024, the SEC amended Rule 15c6-1 to shorten the standard settlement cycle from T+2 to T+1. Regular-way settlement for U.S. equities, corporate bonds, and municipal securities occurs on the business day following trade execution (T+1). U.S. government Treasuries and options transactions also settle on T+1. Cash settlement transactions, by contrast, settle on the trade date itself (same day).
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Under SEC Rule 15c6-1, regular-way settlement for corporate stocks, corporate bonds, and municipal bonds is Trade Date plus ONE business day (T+1).
Fails to adhere to trade execution and settlement rules regarding B.
Fails to adhere to trade execution and settlement rules regarding C.
Fails to adhere to trade execution and settlement rules regarding D.
Official Standard: Effective May 2024, the SEC amended Rule 15c6-1 to shorten the standard settlement cycle from T+2 to T+1. Regular-way settlement for U.S. equities, co