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C ir c u la r N o . 6810
O c to b e r 1, 1971

Effective Date of Proposed Amendments on Loans to Provide
Capital to Broker-D ealer Firm s Postponed to December 1

To A ll P erson s Extending Securities Credit
in the Second Federal R eserv e D istrict:

Following is the text of a statement issued September 29 by the Board of Governors of
the Federal Reserve System:
To allow additional time for considering comments, the Board of Governors of the
Federal Reserve System has postponed until December 1 the effective date of proposed
regulatory amendments setting forth the conditions under which credit may be obtained
without regard to initial margin requirements for the purpose of providing capital to
broker-dealer firm s.
On July 9, the Board issued in revised form proposed amendments to margin Regula­
tions G, T, and U setting forth these provisions. Under that proposal, the amendments
would have become effective on October 1.
The text of the revised proposals referred to in the above statement is contained in our
Circular No. 6764, which was sent to you on July 19, 1971.
In its notice of postponement filed for publication in the Federal Register, the Board of
Governors issued the following additional statement:
In view of the postponement of the effective date to December 1, 1971, the proposed
changes to Regulations G, T, and U will apply to credit extended by banks, brok er/
dealers, and persons subject to Regulation G after December 1, 1971, and to renewals
after such date of credit extended by banks after April 16, 1971, except in the case of
credit extended by banks directly to broker/dealers where the restrictions would apply
to such credit extended after December 1, 1971, and to renewals after that date of such
credit extended after July 9, 1971.

A lfr e d H ayes,
P re sid e n t.

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102