FDIC, OCC issue final rulemaking to shorten securities transaction settlement cycle
On June 1, the FDIC and OCC issued a final rule shortening to two business days (T+2) the standard settlement cycle for securities purchased or sold by OCC- and FDIC-supervised institutions, national banks, and federal savings associations. The agencies stated that the final rule will shorten the settlement cycle from three business days after the date of the contract to T+2—the number of business days in the standard settlement cycle as implemented by the SEC—“unless otherwise agreed to by the parties at the time of the transaction.” (See OCC press release and FDIC FIL-30-2018.) The final rule will align the settlement cycle requirements of the OCC, FDIC, and Federal Reserve Board, and will become effective 30 days following publication in the Federal Register.