CHANGES TO TIME PERIODS FOR REGULAR-WAY SETTLEMENT AND REGULATION T COMING ON MAY 28, 2024
Taking the Securities Industry Essentials (SIE) Exam in the near future? If so, then you should know that the SEC has changed the rules governing Regular-Way Settlement from two business days to only one business day. Regular-Way Settlement will be T+1, not T+2. The effective date of this rule change is one week from tomorrow, or May 28, 2024. Furthermore, the rules of the Fed for payment in both cash and margin accounts now becomes three business days following trade date, or T+3. The former Fed rule was T+4. Make sure that you know these new rules for the SIE Exam. FINRA publishes a Content Outline for the SIE Exam , and you can find the provisions of Regular-Way Settlement in Section 3.1.3. You should expect questions about Regular Way Settlement on the SIE Exam. Section 3.1.3 specifically indicates that knowledge of Trade Settlement is important for SIE Candidates to study and to know. Bob Eder covers Trade Settlement in his Study for the Securi...