Full text of Federal Reserve Bank of New York Circulars : 6908. Margin Regulations G, T, and U

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FED ER AL RESERVE BANK
O F NEW YORK
I C irc u la r

N o . 6908
F e b ru a ry 29, 1972

2J

MARGIN REGULATIONS G, T s AND U
Effective Date of Proposed Amendments on Loans to Provide
Capital to Broker-D ealer Firm s Postponed to September 1, 1972
To A ll P erso n s E xten d in g S e c u rities C redit
in the Second F ederal R e se rv e D istrict:

Following is the text
Federal R eserve System:

of a statem ent issued today by the Board of Governors of the

The Board of Governors of the Federal R eserve System today postponed until
September 1, 1972, the effective date of proposed regulatory amendments setting forth
the conditions under which credit may be obtained without regard to initial margin
requirem ents for the purpose of providing capital to broker-dealer firm s.
On July 9, 1971, the Board issu ed in revised form proposed amendments to margin
Regulations G, T, and U setting forth these provisions.
The text of the revised proposals referred to in the above statement is contained in our
C ircular No. 6764, which was sent to you on July 19, 1971.
Printed below
Federal R egister.

is

the

text of the notice of postponement filed for publication in the
Alfred Hayes,
President.
(Regs. G, T, and U)
N otice postponing e ffe c tiv e date of
proposed amendments in regard to C redit
to Contribute C apital to Brokers and Dealers

1. Pursuant to the authority contained in
the Securities Exchange Act of 1934(15 U.S.C.
78g), the Board of Governors, on July 9,1971
(36 Federal R egister 13218), published r e ­
visions to its proposals to amend Parts 207,
220, and 221 (Regulations G, T, and U), to
become effective October 1, 1971, but p ost­
poned to March 1, 1972 by Notice (36 Federal
R egister 22855).
2. Upon request made to the Board and
in anticipation of proposed rules on the sam e
subject matter by other regulatory bodies,
the Board hereby announces that it w ill
postpone the proposed effective date to Sep­
tem ber 1, 1972.
3. As a result of the postponement of



the proposed effective date, the proposed
changes to Regulations G, T, and U would
apply to credit extended by banks, brokers
or dealers, and persons subject to Regulation
G after September 1, 1972, and to renewals
after such date of credit extended by banks
after
(i) April 16, 1971 in the case of
credit extended to a custom er for the pur­
pose of making a loan or contribution of
capital to a broker or dealer subject to
Part 220 (Regulation T),
(ii)
July 9, 1971 in the case of credit
extended directly to a broker or dealer.
By order of the Board of Governors,
February 29, 1972.