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Federal R eserve Bank
OF DALLAS
W IL L IA M

H. W ALLACE

FIRST V IC E PR ES ID EN T
AND C H IE F O PER ATING O FFIC ER

November 10, 1988

DALLAS, TEXAS 7 5 2 2 2

Circular 88-79

TO:

The Chief Executive Officer of all
member banks and others concerned in
the Eleventh Federal Reserve District
SUBJECT
Over-the-Counter (OTC) Margin Stocks
DETAILS

The Board of Governors of the Federal Reserve System has revised the
list of over-the-counter (OTC) stocks, effective November 14, 1988, that are
subject to its margin regulations. Federal Reserve Banks publish a complete
list once a year and supplements of additions to and deletions from the list
three times a year. The complete list of OTC stocks effective February 8,
1988, and the supplements of additions and deletions effective May 10, 1988
and August 8, 1988 are available from the Public Affairs Department.
ATTACHMENTS
The Board's press release and the material as published in the
Federal Register announcing revisions to the list of OTC stocks effective
November 14, 1988 are attached.
MORE INFORMATION
For further information regarding marginable OTC stock requirements,
please contact Dean A. Pankonien at (214) 651-6228.
Sincerely yours,

For additional copies of any circular please contact the Public A ffairs D epartm ent at (214) 6 51 -6 2 8 9 . Banks and others are
encouraged to use the follow ing incoming W A TS numbers in contacting this Bank (800) 4 4 2 -7 1 4 0 (intrastate) and (800)
5 2 7 -9 2 0 0 (interstate).

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

FE D E R A ^E S E R V ^pr^s^^lease
For use in morning papers
October 31, 1988

October 28, 1988

The Federal Reserve Board today published a revised
list of over-the-counter

(OTC) stocks that are subject to its

margin regulations, effective November 14, 1988.
This revised List of Marginable OTC Stocks supersedes
the List of Marginable OTC Stocks that was effective on August 8,
1988.

The changes that have been made to the List, which now

includes 3,113 OTC stocks, are as follows:
—

96 stocks have been included for the first
time, 85 under National Market System (NMS)
designation;

—

62 stocks previously on the List have been
removed for substantially failing to meet the
requirements for continued listing;

—

68 stocks have been removed for reasons such as
listing on a national securities exchange or
involvement in an acquisition.

The list includes all over-the-counter securities
designated by the Board pursuant to its established criteria as
well as all stocks designated as NMS securities for which
transaction reports are required to be made pursuant to an
effective transaction reporting plan.

Additional OTC securities

may be designated as NMS securities in the interim between the
Board's quarterly publications and will be immediately
marginable.

The next publication of the Board's list is

scheduled for February 1989.

-

2 -

In addition to NMS-designated securities,

the Board

will continue to monitor the market activity of other OTC stocks
to determine which stocks meet the requirements for inclusion and
continued inclusion on the List.
Margin regulations generally limit the amount of credit
a person or firm may obtain to buy or carry stock.

Stocks on the

List of Marginable OTC Stocks are subject to the same margin
requirements

(currently 50 percent)

securities exchanges.

as stocks listed on national

This means a person or firm buying a stock

on credit must make a down payment equal to at least 50 percent
of the purchase price of the stock and may obtain credit for the
remaining 50 percent.

These margin requirements are only

applicable to credit extended on OTC stocks after they are placed
on the List and the List has become effective or are designated
as NMS securities.

No credit may be extended by broker-dealers

on OTC stocks not on the List or in the NMS group.

Credit

extended by banks and other lenders on OTC stocks not on the List
or in the NMS group need only conform to the good faith lending
limitation contained in Regulations G and U.
It is unlawful for any person to cause any
representation to be made that inclusion of a stock on this List
indicates that the Board or the Securities and Exchange
Commission has in any way passed upon the merits of any such
stock or transaction therein.

Any references to the Board in

connection with the List or any stocks thereon in any
advertisement or similar communications is unlawful.

43678

Federal Register / Vol. 53, No. 209 / Friday, October 28, 1988 / Rules and Regulations
Final rule; determination of
applicability of regulations.

ACTION:

The List of Marginable OTC
Stocks is comprised of stocks traded
over-the-counter (OTC) that have been
determined by the Board of Governors
of the Federal Reserve System to be
subject to the margin requirements
under certain Federal Reserve
regulations. The List is published four
times a year by the Board as a guide for
lenders subject to the regulations and
the general public. This document sets
forth additions to or deletions from the
previously published List effective
August 8,1988 and will serve to give
notice to the public about the changed
status of certain stocks.
EFFECTIVE DATE: November 14.1988.
SUMMARY:

FOR FURTHER INFORMATION CONTACT:

FEDERAL RESERVE SYSTEM
12 CFR Parts 207, 220, 221 and 224
Regulations G, T, U and X; Securities
Credit Transactions; List of Marginable
OTC Stocks
Board of Governors of the
Federal Reserve System.

AGENCY:

Peggy Wolffrum, Securities Regulation
Analyst, Division of Banking
Supervision and Regulation, (202) 4522781. For the hearing impaired only,
Eamestine Hill or Dorothea Thompson,
Telecommunications Device for the Deaf
(TTD) (202) 452-3544, Board of
Governors of the Federal Reserve
System, Washington, DC 20551.
SUPPLEMENTARY INFORMATION: Set forth
below are stocks representing additions
to or deletions from the Board’s List of
Marginable OTC Stocks. This
supersedes the last List which was
effective August 8,1988. Additions and
deletions for that List were published at
53 FR 28188, July 27,1988. A copy of the
complete List incorporating these
additions and deletions is available
from the Federal Reserve Banks.
The List of Marginable OTC Stocks
includes those stocks that meet the
criteria specified by the Board of
Governors in Regulations G, T, U and X
(12 CFR Parts 207, 220, 221 and 224,
respectively). These stocks have the
degree of national investor interest, the
depth and breadth of market, and the
availability of information respecting
the stock and its issuer to warrant
regulation in the same fashion as
exchange-traded securities. The List
also includes any stock designated
under an SEC rule as qualified for
trading in the national market system
(NMS Security). Additional OTC stocks
may be designated as NMS securities in
the interim between the Board’s
quarterly publications. They will
become automatically marginable at
broker-dealers upon the effective date of
their NMS designation. The names of
these stocks are available at the Board
and the Securities and Exchange
Commission and will be incorporated
into the Board’s next quarterly List.

Federal Register / Vol. 53, No. 209 / Friday, October 28, 1988 / Rules and Regulations
The requirements of 5 U.S.C. 553 with
respect to notice and public
participation were not followed in
connection with the issuance of this
amendment due to the objective
character of the criteria for inclusion
and continued inclusion on the List
specified in 12 CFR 207.6 (a) and (b),
220.17 (a) and (b), and 221.7 (a) and (b).
No additional useful information would
be gained by public participation. Teh
full requirements of 5 U.S.C. 553 with
respect to deferred effective date have
not been followed in connection with
the issuance of this amendment because
the Board finds that it is in the public
interest to facilitate investment and
credit decisions based in whole or in
part upon the composition of this List as
soon as possible. The Board has
responded to a request by the public and
allowed a two-week delay before the
List is effective.
List of Subjects
12 CFR Part 207
Banks, Banking, Credit, Federal
Reserve System, Margin, Margin
requirements, National Market System
(NMS Security), Reporting and
recordkeeping requirements. Securities.
12 CFR Part 220
Banks, Banking, Brokers, Credit,
Federal Reserve System, Margin, Margin
requirements, Investments, National
Market System (NMS Security),
Reporting and recordkeeping
requirements, Securities.
12 CFR Part 221
Banks, Banking, Credit, Federal
Reserve System, Margin, Margin
requirements, National Market System
(NMS Security), Reporting and
recordkeeping requirements, Securities.
12 CFR Part 224
Banks, Banking, Borrowers, Credit,
Federal Reserve System, Margin, Margin
requirements, Reporting and
recordkeeping requirements. Securities.
Accordingly, pursuant to the authority
of sections 7 and 23 of the Securities
Exchange Act of 1934, as amended (15
U.S.C. § § 78g and 78w), and in
accordance with 12 CFR 207.2(k) and
207.6(c) (Regulation G), 12 CFR 220.2(s)
and 220.17(c) (Regulation T), and 12 CFR
221.2(j) and 221.7(c) (Regulation U),
there is set forth below a listing of
deletions from and additions to the
Board's List:
Deletions From List
Stocks Rem oved fo r Failing Continued
Listing Requirements
Alaska Bancorporation

$.01 par common
Amcole Energy Corporation
$.01 par common
American First Corporation
$1.00 par common
American Health Companies, Inc.
$.01 par common
American Telemedia Network, Inc.
No par common
Anchor Financial Corporation
S8.00 par common
Bancoklahorna Corporation
$2.00 par common
Bercor, Inc.
No par common
Biidner, J. Sons, Inc.
$.01 par common
Bioplasty, Inc.
$.01 par common
Butler, John O., Company
$.01 par common
Calstar, Inc.
$.10 par common
Camera Platforms International, Inc.
$.005 par common
CCA Industries, Inc.
Class A, w arrants (expire 06-30-89)
Chief Automotive Systems, Inc.
$.10 par common
Coated Sales, Inc.
$.01 par common
Computer Microfilm Corporation
$.25 par common
Corvus Systems
No par common
Crazy Eddie, Inc.
6% convertible subordinated
debentures
Decor Corporation
$.01 par common
Dewey Electronics Corporation
$.01 par common
DNA Plant Technology Corp.
W arrants (expire 01-17-90)
Eagle Telephonies, Inc.
Class A, warrants (expire 10-12-88)
Empire Insurance Company
$1.00 par common
Endotronics, Inc.
No par common
Finest Hour, Inc.
No par common
First World Cheese, Inc.
W arrants (expire 06-05-91)
Fountain Powerboat Industries Inc.
W arrants (expire 12-15-91)
Gateway Medical Systems, Inc.
$.10 par common
Gemcraft, Inc.
$.10 par common
General Physics Corporation
$.025 par common
Geneve Capital Group, Inc.
$.10 par common
Healthways Systems, Inc.
$.01 par common
Hitk Corporation
$.001 par common
Infinity Broadcasting Corp.

43879

Class A, $.01 par common
Intel Corporation
W arrants (expire 08-15-88)
International Robomation/Intelligence
No par common
Invention, Design, Engineering
Associates, Inc.
$.01 par common
Knutson Mortgage Corporation
$.01 par common
Medmaster Systems, Inc.
W arrants (expire 07-10-91)
Memory Metals, Inc.
$.01 par common
Microwave Filter Company, Inc.
$.10 par common
North American Holding Corp.
$.01 par common, Class A, non-voting,
$.001 par common
Pay ’ Save, Inc.
$1.00 par common
Precision Target Marketing, Inc.
$.01 par common
W arrants (expire 08-23-89)
Quality Systems, Inc.
$.01 par common
Ramtek Corporation
$.01 par common
Ritzy’s G. D., Inc.
No par common
Saratoga Standardbreds, Inc.
$.01 par common
Scientific Micro Systems, Inc.
$.01 par common
Sooner Defense of Florida, Inc.
$.01 par common
Southern Hospitality Corporation
$.08- V par common
a
Thermal Profiles, Inc.
$.01 par common
Trans World Airlines, Inc.
$6.00 par cumulative exchangeable
preferred
United Financial Group, Inc.
No par common
Vanzetti Systems Inc.
$.01 par common
Vega Biotechnologies, Inc.
$.01 par common
Virgin Group, PLC
American Depository Receipts
Webb, Del E., Corporation
W arrants (expire 02-01-90)
Wessex Corp.
$.01 par common
Stocks Rem oved fo r Listing on a
N ational Securities Exchange or Being
Involved in an Acquisition
Albany International Corp.
Class A, $.001 par common
Amcast Industrial Corporation
No par common
Baker, Fentress & Company
$1.00 par common
Bear Automotive Service Equipment Co.
$.01 par common
Berkline Corporation, The

43680

Federal Register / Vol. 53, No. 209 / Friday, October 28, 1988 / Rules and Regulations

$1.00 par common
Beverly Savings Bank (Massachusetts)
$,10 par common
BIW Cable Systems, Inc.
$.40 par common
Brougher Insurance Group, Inc.
No par common
Capital Wire & Cable Corporation
No par common
Central Pacific Corporation
No par common
Century Communications Corp.
Class A, $.01 par common
Century Papers, Inc.
$1.00 par common
Command Airways, Inc.
$.01 par common
Comprehensive Care Corporation
$.10 par common
Concurrent Computer Corporation
$.01 par common
Crosby, Philip Associates, Inc.
$.01 par common
Crystal Oil Company
$.01 par common
$.01 par convertible preferred
Cyprus Minerals Company
No par common
Datametrics Corporation
No par common
Daxor Corporation
$.01 par common
Diagnostic Products Corporation
No par common
Diasonics, Inc.
No par common
Dresher, Inc.
$.01 par common
Energas Company
No par common
EPSCO, Inc.
$1.00 par common
Farm Fresh, Inc.
$.01 par common
First Kentucky National Corporation
No par common
First Union Corporation
$3.33-Vs par common
Freedom Federal Savings Bank (Illinois)
$.01 par common
Frozen Food Express Industries, Inc.
$1.50 par common
Gartner Group, Inc., The
$.01 par common
Grandview Resources, Inc.
No par common
Hooper Holmes, Inc.
$.01 par common
Hunter-Melnor, Inc.
$.01 par common
IEC Electronics Corporation
$.05 par common
Josephson International Inc.
$.05 par common
Lancer Corporation
$.01 par common
Lewis, Palmer G., Company, Inc.
$1.00 par common
Matrix Science Corporation

$.01 par common
Micom Systems, Inc.
$.01 par common
Middleby Corporation, The
$.01 par common
National Guardian Corporation
$.10 par common
Norton Enterprises, Inc.
$.01 par common
P&C Foods, Inc.
$.01 par common
Photronic8 Corporation
$.10 par common
Shoney's South, Inc.
$.05 par common
Silicon Systems, Inc.
$.01 par common
Simmons Airlines, Inc.
No par common
Southold Savings Bank, The (New York)
$1.00 par common
Southstate Bank for Savings
$.10 par common
Sovran Financial Corporation
$5.00 par common
Spectramed, Inc.
$.01 par common
SPI Pharmaceuticals, Inc.
$.01 par common
System Industries, Inc.
$.01 par common
Taunton Savings Bank
$.10 par common
TCBY Enterprises, Inc.
$.10 par common
Total Erickson Resources, Ltd.
$.01 par common
Unicare Financial Corp.
No par common
USP Real Estate Investment Trust
$1.00 par shares of beneficial interest
Welbilt Corporation
$.10 par common
Wellman, Inc.
$.001 par common
W estern Federal Savings and Loan
Association (California)
$1.00 par common
Wings W est Airlines, Inc.
No par common
Wyse Technology
No par common
Xidex Corporation
$.0875 par common
W arrants (expire 04-16-93)
Zondervan Corporation, The
$1.00 par common
Additions To The List
ADT Limited
American Depository Receipts
All American Semiconductor, Inc.
$.01 par common
American Continental Corporation
$1.00 per exchangeable preferred
American Power Conversion
Corporation
$.01 par common
ARIX Corporation

No par common
Asiamerica Equities, Inc.
$1.00 par common
Assix International, Inc.
$.001 par common, W arrants (expire
07-19-91)
Associated Naturul Gas Corporation
$.10 par common
B & H Bulk Carriers, Ltd.
$.01 par common
Babbage’s, Inc.
$.10 par common
Bailey Corporation
$.10 par common
BI Incorporated
No par common
Biogen, Inc.
W arrants (expire 06-30-94)
BMC Software, Inc.
$.01 par common
Candela Laser Corporation
$.01 par common
Casual Male Corporation, The
$.01 par common
Cellular, Inc.
$.001 par common
Centennial Beneficial Corp.
No par common
Ceramics Process Systems Corporation
$j01 par common
Charter Federal Savings Bank (New
Jersey)
$.01 par common
Chemex Pharmaceuticals, Inc.
Class 1—warrants (expire 05-20-90)
Chemical Financial Corp.
$10.00 par common
Cliffs Drilling Company
No par convertible exchangeable
preferred stock
Colorocs Corporation
Class C, w arrants (expire 03-31-89)
Class D, w arrants (expire 10-25-88)
Concord Camera Corp.
No par common
Constar International, Inc.
W arrants (expire 11-13-89)
Convergent Solutions, Inc.
$.01 par common, W arrants (expire
05-15-92)
Coral Gold Corporation
No par common
Cornucopia Resources Ltd.
No par common
Corporate Data Sciences, Inc.
No par common
Critical Industries, Inc.
$.001 par common
Dekalb Genetics Corporation
Class B, no par common
DFSoutheastern, Inc.
$1.00 par common
Eagle Bancorp, Inc.
$.10 par common
Eastland Financial Corp.
$.01 par common
Environmental Control Group, Inc.
$.10 par common

Federal Register / Vol. 53, No. 209 / Friday, October 28, 1988 / Rules and Regulations
Essex County Gas Company
$2.50 par common
First Federal Savings Bank of Perry
$1.00 par common
First of Long Island Corporation, The
$.10 par common
Franklin First Financial Corporation
$.01 par common
Genlyte Group Incorporated
$.01 par common
GNI Group, Ind., The
No par common
Goodheart-Willcox Company, Inc.
$1.00 par common
Gull Laboratories, Inc.
$.01 par common
Healthwatch, Inc.
No par common
High Plains Corporation
$.10 par common
Home Federal Savings Bank (South
Carolina)
$1.00 par common
Home Port Bancorp, Inc.
$.10 par common
Imagine Films Entertainment, Inc.
$.01 par common
Intercargo Corporation
$1.00 par common
Intervoice, Inc.
No par common
Kinder-Care Learning Centers, Inc.
$.01 par common
Kwik Products International
Corporation
No par common
Landmark American Corporation
$.01 par common
Landmark Graphics Corporation
$.05 par common
Long Island City Financial Corporation,
The
$.10 par common
Mayflower Financial Corporaton
$.01 par common
Microamerica, Inc.
$.01 par common
Nalcap Holdings, Inc.
No par common
National Media Corporation
$.10 par common
Neorx Corporation
$.02 par common
Novellus Systems, Inc.
No par common
Olympic Savings Bank (Washington)
$1.00 par common
Pancretec, Inc.
No par common
Phoenix Technology Ltd.
$.001 par common
Pride Petroleum Services, Inc.
No par common
Ratners Group, PLC
American Depository Receipts
Reliable Life Insurance Company. The
Class A, $1.00 par common
Rock Financial Corporation
$3.33 par common

Scientific Technologies, Incorporated
No par common
Selfix, Inc.
$.01 par common
Showscan Film Corporation
$.001 par common
Sierra On-Line, Inc.
$.01 par common
Silk Greenhouse, Inc.
$.01 par common
Smithfield Companies, Inc., The
No par common
Software Toolworks, Inc., The
$.01 par common
Stake Technology Ltd.
No par common
Stotler Group Inc.
$1.00 par common
Structofab, Inc.
$.02 par common
Synoptics Communications, Inc.
No par common
Tele-Optics, Inc.
$.01 par common. W arrants (expire
08-11-89)
Tons of Toys, Inc.
$.01 par common
Tuscarora Plastics, Inc.
No par common
Unigene Laboratories, Inc.
$.01 par common, W arrants (expire
08-11-92)
United National Bancorp
$2.50 par common
Unitronix Corporation
No par common
VMS Mortgage Investors, L.P. HI
Depository units of limited
partnership interest
Washington Savings Bank, F.S.B.
(Maryland)
$.01 par common
W eitek Corporation
No par common
W etterau Properties, Inc.
$.01 par common
W holesale Club, Inc., The
No par convertible preferred
By order of the Board of Governors of the
Federal Reserve System, acting by its Staff
Director of the Division of Banking
Supervision and Regulation pursuant to
delegated authority (12 CFR 265JZ(c)(18)).
October 24,1988.
William W. W iles,

Secretary of the Board.
[FR Doc. 88-24916 Filed 10-27-88; 8:45 amj
BILLING) CODE 6210-01-M

43681

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