Days to settlement for US corporate bonds

External question — Quantitative Finance Stack Exchange Author: L. Francis Cong Original post: https://quant.stackexchange.com/questions/75441 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. This question may be not be very relevant to quantitative finance, but I guess fixed-income modellers may encounter this some time as well. The question is about the days to settlement for US corporate bond transactions. My current understanding is that they used to be settled as T+3 before Sep 4, 2017. In 2017, SEC has a rule requiring brokers to switch from T+3 to T+2, effective starting from Sep 5, 2017. In other words, after Sep 5, 2017, corporate bond transactions are settled as T+2. In addition, I also checked the data field stlmnt_dt in the TRACE Enhanced Database (post-2/6/12) and find that the majority of daily transactions (~90%) are settled T+3 before Sep 5, 2017 and that the majority are settled T+2 starting from Sep 5, 2017. However, I would still like to ask corporate bond traders to confirm my findings.

External answer — Quantitative Finance Stack Exchange Author: Sharad Original post: https://quant.stackexchange.com/a/75442 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Not technically a corporate bond trading source but the following SIFMA (Securities Industry and Financial Market Association; the leading trade association for institutional participants in the U.S. and global capital markets) publications are consistent with your findings. SIFMA:Shortening the Settlement Cycle SIFMA:T+2 Settlement Update