Which statement accurately distinguishes between Settlement date and Regulation T payment date?

The correct statement clarifies that the settlement date is when broker-dealers exchange security and money. This date is crucial in the trade process because it is when a completed transaction is officially recorded, and the actual transfer of securities for payment occurs. The settlement date typically occurs a few business days after the trade date, depending on the type of security involved. This distinction is essential for understanding how and when securities and funds are exchanged in transactions, which is a foundational aspect of trading in the financial markets.

In contrast, the Regulation T payment date refers to the deadline by which a customer must settle their payment for securities purchased in a margin account. Understanding that the settlement date specifically pertains to the exchange of securities occurs between broker-dealers highlights its significance in the trading process, while the Regulation T payment date focuses more on the obligations of the customer in margin buying scenarios.