1

I was reading Settlement Period and wondering what was the settlement duration for options pre 1993. For equity/etf, it seems it was five days.

So for options, was it four days ? , any verifiable link will be appreciated.

Note: I understand that for stocks now it is T+2 and for options it is T+1.

per link :

Most security transactions, including stocks, bonds, municipal securities, mutual funds traded through a broker, and limited partnerships that trade on an exchange, must settle in three days. Government securities and stock options settle on the next business day following the trade.

and another link :

7 Settlement in the futures, options, and government securities markets occurs on the day after trade date ("T+1") using same-day funds. Settlement of most trades in corporate and municipal securities, on the other hand, takes place on the fifth business day after the trade date ("T+5") with money payments among financial intermediaries made in next-day funds (i.e., payment by means of certified checks passing between the clearing corporation and its members).

So, it seems for Futures and options it has been always T+1, irrespective of what is settlement in Equity market... Any one who has been in investment for long, can please verify ?

  • SEC Rule 15c6-1 changed T+5 to T+3 in 1995 and it was later amended to T+2. My unreliable memory seems to recall that option settlement was the same as for equities but you should Google for verification. – Bob Baerker Feb 27 at 18:30
  • @bob-baerker, I understand that about stocks , what i am looking for options. Has options been always one day less that stocks ? – puzzled Feb 27 at 18:50
  • I'm suggesting that if you can find the text and verse of the SEC rule (1995 amendment), it might spell out the different settlement changes implemented at that time for each class of securities. – Bob Baerker Feb 27 at 19:06
  • From: sec.gov/reportspubs/investor-publications/… option settlement been T+1 since 2004 – Morrison Chang Feb 27 at 19:08
  • 1
    @puzzled - Did you find a source stating that it has always been T+1 ? – Bob Baerker Feb 27 at 22:32

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.