Settlement
Settlement - The conclusion of the transaction.
All cash transactions settle on the same day.
A regular way transaction settles 5 business days from the trade date.
Regular way for government bonds and options
settle the next business day.
Government notes or bonds can settle 4 ways:
- cash (same day)
- Regular way (next business day)
- Skip day (2nd business day)
- or like corporate bonds (5 business days)
