Settlement Cycle and Dates of Delivery
Chapters in this video
- 0:00 Enforcing the T+1 standard for regular way trades
- 2:20 Exempted securities and the 4:30 p.m. firm-commitment carve-out
- 3:57 Same-day affirmation: allocation, confirmation, and affirmation
- 5:25 Cash, regular way, and seller's option delivery under the Uniform Practice Code
- 6:47 Delivery with draft attached and rare testable mechanics
- 6:52 Rapid-fire exam recap
What this video covers
- The T+1 standard settlement cycle, when it became effective, and why regulators shortened it from T+2
- Exempted securities that escape the standard cycle, including government securities, municipal securities, commercial paper, bankers' acceptances, and commercial bills
- The firm-commitment offering carve-out that defaults to T+2 when priced after 4:30 p.m. ET, and why operational reality drives this bright-line rule
- The three-step same-day affirmation workflow, allocation then confirmation then affirmation, and why T+1 collapses without it
- Written agreements versus written supervisory procedures (WSPs) as the two compliant paths for institutional post-trade allocation
- Cash, regular way, and seller's option delivery types under the Uniform Practice Code, including prior written notice for early seller's option delivery
- Delivery versus payment (DVP), receive versus payment (RVP), and delivery with draft attached / sight draft as rare but testable settlement mechanics
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 24 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.