Settlement and Delivery: Rapid Fire

What this video covers

• Why regular way settles at T+1 (one business day after trade date), cash settles at T+0 (same day), and the single exception that pushesissuer-to-underwriter sales to T+2
• How the T+1 settlement cycle collapses the ex-dividend date and record date onto the same calendar day, and what that means for dividend entitlement
• What Delivery Versus Payment (DVP) and Receive Versus Payment (RVP) actually describe: simultaneous exchange of securities and cash for institutional accounts with custodian banks, never retail
• The exact divisor rules for good delivery of stock certificates, and why a deceased registered owner voids delivery without executor paperwork and a stock power with Medallion signature guarantee
• The buy-in timeline: written notice by 12:00 PM ET at least two business days before execution, with earliest execution three business days after delivery was due, plus why a fail never cancels the binding contract
• The 90-day freeze penalty on cash accounts for payment failure, and the exam trap that frozen accounts can still trade with 100% cash upfront
• Which reporting system tracks which security: Trade Reporting and Compliance Engine (TRACE) for corporate bonds and U.S. Treasuries, Municipal Securities Rulemaking Board (MSRB) for municipals through the Electronic Municipal Market Access (EMMA) site, and Trade Reporting Facility (TRF) for over-the-counter equities