Fed Approves Amendments To Regulation T

Executive Summary

The Board of Governors of the Federal Reserve System (Fed) is adopting several amendments to Regulation T (Reg. T), the regulation that covers extensions of credit by and to brokers and dealers. These amendments reflect consideration of the comments submitted in response to the proposed rule issued by the Board for public comment on June 29, 1995, and reprinted in Notice to Members 95-68. The amendments address a number of topics, including eliminating restrictions on arranging for credit, the loan value of securities, options transactions, and international transactions, and place increased reliance on the rules of the Securities and Exchange Commission (SEC) and self-regulatory organizations (SROs). Some of the approved changes relating to options have a delayed effective date of June 1, 1997; however, the majority of the changes will be effective July 1, 1996.

The Fed has also solicited comment on proposed significant additional amendments to Reg. T. Notice to Members 96-39 addresses these proposals.

Questions regarding this Notice may be directed to Anne Harpster, Compliance Department, at (202) 728-8092, or Robert Broughton, Compliance Department, at (202) 728-8472.