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T+2 Securities Transaction Settlement Cycle: Final Rule

June 8, 2018 / Source: OCC

Subject: T+2 Securities Transaction Settlement Cycle
Date: June 7, 2018
To: Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies of Foreign Banks; Department and Division Heads; All Examining Personnel; and Other Interested Parties

Description: Final Rule


The Office of the Comptroller of the Currency (OCC) published a final rule in the Federal Register to shorten the standard settlement cycle for securities purchased or sold by national banks, federal savings associations, and federal branches and agencies (together, banks). The final rule is being issued jointly with the Federal Deposit Insurance Corporation (FDIC).

The effective date of the final rule is October 1, 2018.

Note for Community Banks The final rule will apply to all banks that effect securities trades for the bank’s own account or for customers.


The final rule will require banks to settle most securities transactions within the number of business days in the “standard settlement cycle followed by registered broker dealers in the United States” unless otherwise agreed to by the parties at the time of the transaction. In doing so, the rule aligns the settlement cycle requirements of the OCC, FDIC, and Board of Governors of the Federal Reserve. At present, the standard settlement cycle followed by registered broker dealers in the United States is two business days after the date of the contract.


On September 5, 2017, the securities industry in the United States 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.” The transition was the culmination of a multi-year securities industry initiative and rule changes implemented by the U.S. Securities and Exchange Commission and securities self-regulatory organizations. In connection with the transition to T+2, on June 9, 2017, the OCC issued Bulletin 2017-22, “Securities Operations: Shortening the Settlement Cycle,” which notified OCC-supervised institutions that they should be in compliance with T+2 as of the September 5 transition date. The notice of proposed rulemaking for this rule was published in the Federal Register on September 11, 2017. The OCC understands that, consistent with the industry’s transition to T+2 and the OCC’s bulletin, banks are already complying with a two-business-day settlement standard.

Further Information

Please contact David Stankiewicz, Special Counsel, Securities and Corporate Practices Division, (202) 649-5510; Daniel Perez, Attorney, Legislative and Regulatory Activities Division, (202) 649-5490; or Patricia Dalton, Technical Expert, Asset Management Group, Market Risk, at (202) 649-6360.

Karen Solomon
Acting Senior Deputy Comptroller and Chief Counsel

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