Settlement and Clearance: Rapid Fire

What this video covers

• What the Uniform Practice Code (UPC) governs: inter-member over-the-counter (OTC) trades, and the exact carve-outs where it does not apply (municipal securities, mutual funds, Direct Participation Programs (DPPs), continuous net settlement (CNS))
• Why DK notices are strictly broker-to-broker, the one-business-day response window, and what happens when a contra-member fails to confirm or DK
• The T+1 regular-way settlement cycle for equities and corporate bonds, same-day cash settlement, and the T+2 default for firm-commitment offerings priced after 4:30 p.m. Eastern time
• The four pillars of good delivery (correct unit, proper assignment, guaranteed signature if mutilated, not from a prohibited owner) and why one defect kills the entire delivery
• The buy-in versus sell-out distinction: advance notice requirements, who initiates each remedy, and the notification deadlines by 12:00 p.m. ET and 6:00 p.m. ET
• Why the mark-to-market rule applies only to inter-member uncompleted contracts, not retail customer margin, and how the deposit is calculated
• How to select the correct accrued-interest day count convention (30/360 for corporate and municipal bonds, actual/actual for government securities) and apply the up-to-but-not-including settlement date rule