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NPR Aims to Shorten Settlement Cycle
On Friday, September 1, 2017, the OCC and the FDIC issued a notice of proposed rulemaking to shorten the standard settlement cycle for securities purchased or sold by national banks, federal savings associations, and FDIC-supervised institutions.
The agencies note that the industry-wide standards established by the applicable securities and self-regulatory organizations’ rules for T+2 securities clearance and settlement go into effect on September 5, 2017, and that the agencies previously issued guidance to assist their supervised institutions in preparing for the change. On June 9, 2017, the OCC issued Bulletin 2017-22, which notified OCC-supervised institutions of the upcoming change and the OCC’s expectations. The FDIC issued guidance applicable to FDIC-supervised institutions through Financial Institution Letter 32-2017 on July 26, 2017.
Comments will be accepted for 30 days from publication in the Federal Register.