Settlement
Regular way settlement on Treasury bonds is:
Treasury = T+1. Corporate/Muni = T+2. Options = T+1.
Complete Analysis & Legal Rationale
U.S. Treasury securities settle T+1 (next business day) in regular way settlement. Since May 28, 2024, corporate and municipal securities also settle T+1, so Treasuries are no longer faster than other securities. Cash (same-day) settlement is a separate, non-regular-way arrangement.
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:
Same day (cash) settlement is available by agreement but is not regular way.
Matches the verified teaching point in the explanation.
T+2 was the prior standard; regular way is now T+1 for Treasuries (and equities, corporates, and munis since May 2024).
T+5 was an older standard before settlement cycles were shortened.
Official Standard: Fair dealing obligations in municipal securities activities (verify current text).
Official Standard: Primary reference for Treasury bills/notes/bonds/STRIPS characteristics (verify current Treasury materials).
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.