Settlement Cycle and Dates of Delivery

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