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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Financial Institution Letters

FIL-30-2018
June 1, 2018

Joint Final Rule:

Securities Transaction Settlement Cycle

Printable Format:

FIL-30-2018 - PDF (PDF Help)

Summary:

On May 31, 2018, the FDIC Board of Directors approved the attached final rule, issued jointly with the Office of the Comptroller of the Currency (OCC), to shorten the standard settlement cycle for securities purchased or sold by FDIC-supervised institutions, national banks, and federal savings associations from three days to the number of business days in the standard settlement cycle followed by registered broker dealers in the United States. This is two days (T+2) unless otherwise agreed to by the parties at the time of the transaction. The final rule aligns with the new industry standard settlement cycle as implemented by the U.S. Securities and Exchange Commission (SEC).

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter applies to all FDIC-supervised financial institutions. Many FDIC-supervised institutions trade through third parties subject to the SEC's rules.

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Note:

FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at https://www.fdic.gov/news/news/financial/2018/.

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.

Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E 1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).

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