Clearing & Settlement
The post-trade process of matching, guaranteeing, and completing transactions; regular-way settlement for stocks, corporate bonds, and municipal bonds is T+1 — one business day after the trade.
The DTCC and its subsidiaries (NSCC for clearing, DTC as the depository) net trades between firms and hold securities in book-entry form. Clearing agencies guarantee both sides of a matched trade, removing counterparty risk from the market.