What is the general timeframe of regular way settlement for securities, excluding Treasury securities?

The correct timeframe for regular way settlement of securities, excluding Treasury securities, is T + 2. This means that the transaction is settled two business days after the trade date (T). The T + 2 settlement cycle was implemented to increase efficiency and reduce credit and counterparty risk in the securities market.

This timeframe aligns with the standard practices of many major financial markets, allowing buyers and sellers to complete transactions promptly while still providing enough time for necessary administrative tasks. Treasury securities have a different settlement period of T + 1, reflecting their high liquidity and the need for quick transactions.

When considering T + 3 or T + 5, it's important to note that these settlement periods have become less common, as they can lead to increased risk and inefficiencies in trading. The industry trend has shifted toward T + 2 to better meet the demands of modern trading practices.