FDIC and OCC Finalize Rule to Shorten Settlement Cycle for Securities
US Agencies (FDIC and OCC) issued a final rule to shorten the standard settlement cycle for securities purchased or sold by the institutions they supervise. The final rule is consistent with an industry-wide transition to a two business-day settlement cycle, which is designed to reduce settlement exposure and align settlement practices across all market participants. The final rule will be effective from the first calendar quarter date following 30 days from date of its publication in the Federal Register.
The rule requires banks to settle most securities transactions within the number of business days in the standard settlement cycle followed by registered broker dealers in the U.S., unless otherwise agreed to by the parties at the time of the transaction. Banks will be able to determine the number of business days in the standard settlement cycle followed by registered broker dealers by referencing SEC Rule 15c6-1, 17 CFR 240.15c6-1(a).
On September 05, 2017, the securities industry in the U.S. transitioned from a standard securities settlement cycle of three business days after the date of the contract, commonly known as T+3, to a two-business-day standard, or T+2. On September 11, 2017, the agencies proposed amending regulations applicable to OCC-supervised institutions and FDIC-supervised institutions by aligning those regulations with a T+2.
Related Links
Effective Date: First calendar quarter date following 30 days from FR publication
Keywords: Americas, US, Securities, Banking, Settlement Cycle, T+2, US Agencies
Previous Article
OSFI Consults on the 2019 LICAT Guideline for InsurersRelated Insights
|
News
EBA Finalizes Guidelines on the STS Criteria in SecuritizationEBA published the final guidelines that provide a harmonized interpretation of the criteria for a securitization to be eligible as simple, transparent, and standardized (STS) on a cross-sectoral basis throughout EU.
December 12, 2018
WebPage
Regulatory News
|
|
News
OSFI Sets Domestic Stability Buffer for D-SIBs at 1.75%OSFI set the level for the Domestic Stability Buffer at 1.75% of total risk-weighted assets, as calculated under the Capital Adequacy Requirements (CAR) Guideline.
December 12, 2018
WebPage
Regulatory News
|
|
News
FSI Publishes Paper on Proportionality in Insurance Solvency RulesFSI published a paper on proportionality in the application of insurance solvency requirements.
December 11, 2018
WebPage
Regulatory News
|
|
News
BCBS Updates Framework for Pillar 3 Disclosure RequirementsBCBS published the updated framework for Pillar 3 disclosure requirements.
December 11, 2018
WebPage
Regulatory News
|
|
News
EBA Issues Revised List of Validation Rules for ReportingEBA revised the list of validation rules in its implementing technical standards on supervisory reporting.
December 11, 2018
WebPage
Regulatory News
|
|
News
IMF Reports Assess the Stability of Financial System in BrazilIMF published a report on the results of the Financial System Stability Assessment (FSSA) on Brazil.
December 11, 2018
WebPage
Regulatory News
|
|
News
FED Governor Examines Pros of Imposing Capital Buffers on Large BanksAt the Peterson Institute for International Economics in Washington D.C., the FED Governor Lael Brainard summarized the financial stability outlook, highlighted areas where financial imbalances seem to be building, and touched on the related policy implications.
December 07, 2018
WebPage
Regulatory News
|
|
News
US Agencies Propose Rule on Appraisals for Real Estate TransactionsUS Agencies (FDIC, FED, and OCC) proposed a rule to increase the threshold level at or below which appraisals would not be required for the residential real estate transactions from USD 250,000 to USD 400,000. Comments will be accepted for 60 days from publication in the Federal Register.
December 07, 2018
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: First Update for December 2018This week one answer was published as part of the Single Rulebook Questions and Answers (Q&A).
December 07, 2018
WebPage
Regulatory News
|
|
News
FED Updates Reporting Form and Instructions for FR Y-14QFED published the updated reporting form FR Y-14Q for Capital Assessment and Stress Testing, along with the associated instructions.
December 06, 2018
WebPage
Regulatory News
|
