Regulatory Notice 12-58

SEC No-Action Guidance Expanding the Definition of “Ready Market” for Certain Foreign Equity Securities

Executive Summary

The staff of the Division of Trading and Markets of the Securities and Exchange Commission (SEC staff) has issued a no-action letter setting forth conditions under which broker-dealers may treat certain foreign equity securities as having a “ready market” under SEA Rule 15c3-1(c)(11)(i) and subject to the haircuts under SEA Rule 15c3-1(c)(2)(vi)(J) (the no-action letter). This expands the number of foreign securities eligible as foreign margin stock under Regulation T of the Board of Governors of the Federal Reserve System.

 

The text of the SEC staff’s no-action letter is located on the SEC’s website.

 

Questions concerning this Notice should be directed to:

  • Rudolph R. Verra, Managing Director, Risk Oversight and Operational Regulation (ROOR), at (646) 315-8811;
  • Glen Garofalo, Director, Credit Regulation, at (646) 315-8464;
  • Steve Yannolo, Project Manager, Credit Regulation, at (646) 315-8621; or
  • Yui Chan, Managing Director, ROOR, at (646) 315-8426.