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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 12 - Banks and Banking |
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Chapter I - Comptroller of the Currency, Department of the Treasury |
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Part 151 - Recordkeeping and Confirmation Requirements for Securities Transactions |
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Subpart C - Settlement of Securities Transactions |
§ 151.130 - When must I settle a securities transaction?
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§ 151.130 When must I settle a securities transaction?
(a) You may not effect or enter into a contract for the purchase or sale of a security that provides for payment of funds and delivery of securities later than the latest of:
(1) The third business day number of business days in the standard settlement cycle followed by registered broker dealers in the United States after the date of the contract. This deadline is no later than the The number of business days in the standard settlement cycle shall be determined by reference to paragraph (a) of SEC Rule 15c6-1, 17 CFR 240.15c6-1(a);
for contracts involving the(2) The fourth business day after the contract
, if the contract involves the sale for cash of securities that are priced after 4:30 p.m. Eastern Standard Time on the date the securities are priced and are sold by an issuer to an underwriter under a firm commitment underwritten offering registered under the Securities Act of 1933, 15 U.S.C. 77a, et seq., or are sold by you to an initial purchaser participating in the offering;
2(
other3) Such
specifies by rule (seetime as the SEC
, 17 CFR 240.15c6-1)may specify pursuant to an order of exemption in accordance with paragraph (b)(2) of SEC Rule 15c6-1
; or
3(
4) Such time as the parties expressly agree at the time of the transaction. The parties to a contract are deemed to have expressly agreed to an alternate date for payment of funds and delivery of securities at the time of the transaction for a contract for the sale for cash of securities under a firm commitment offering, if the managing underwriter and the issuer have agreed to the date for all securities sold under the offering and the parties to the contract have not expressly agreed to another date for payment of funds and delivery of securities at the time of the transaction.
(b) The deadlines in paragraph (a) of this section do not apply to the purchase or sale of limited partnership interests that are not listed on an exchange or for which quotations are not disseminated through an automated quotation system of a registered securities association.
[76 FR 49008, Aug. 9, 2011, as amended at 83 FR 26349, June 7, 2018]