Standard settlement period for most currencies is 2 business days (Trade Date plus two business days: T+2), with some pairs such as USD.CAD settling the next business day (Trade Date plus one business days: T+1). In order for a date to be a valid settlement date for a Forex transaction, the central banks for both currencies must be open for settlements. If either currency htlement date, sas a ‘holiday' on the target setettlement is deferred until the next valid business day for both currencies. Additionally, intervening holidays, that is a holiday between trade date and the standard 2 days later may or may not defer settlement, depending on which currencies are involved. Most currency transactions will not settle on a USD settlement holiday. This treatment is regardless of whether USD is part of the transaction directly, i.e. a EUR.JPY currency transaction will not settle on a USD settlement holiday but will be deferred to the next valid business day for all three currencies. Currency holidays are days in which the there is no settlement of prior transactions.
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