SIE Understanding Trading, Customer Accounts and Prohibited Activities Practice Question 49

Question: 49

Which of the following is NOT true regarding settlement?

A. Settlement may occur one trade day prior to the trade date (T-1).

B. If the buyer or seller prefers to settle during other than regular-way, this special settlement is agreed to before the trade takes place.

C. If the buyer and seller agree a cash trade, it may settle on the trade date (T).

D. If the seller is not able to provide ownership by the time expected, the seller may request additional time to settle.