Full text of Federal Reserve Bank of St. Louis Circulars : Amendment to Regulation T and Supplement Thereto

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FEDERAL
of

RESERVE
S

t

. L

BANK

o u is

January 27, 1936.

A M E N D M E N T T O R E G U L A T IO N T
A N D SUPPLEM ENT TH ERETO
To m em bers o f N ational Securities Exchanges, to brokers and
dealers w ho transact business in securities through such members,
and to the m em ber and nonmember banks, in D istrict N o. 8:

The Board of Governors of the Federal Reserve System has approved
an amendment to Regulation T and issued a supplement thereto, both effec­
tive February 1, 1936. Its press statement contained the following comments:
“T he amendment provides that the margin requirements appli­
cable to members of national security exchanges and brokers or
dealers who transact a business in securities through the medium of
such members shall be as prescribed from time to time by the Board
of Governors of the Federal Reserve System in supplements to the
regulation.
“T h e supplement provides that the maximum loan value of regis­
tered securities (other than exempted securities) shall be 45 per cent
(instead of 55 per cent) of the current market value of the security
in those cases in which this amount is greater than the lowest market
price of the security during the prescribed base period.”
Attached are copies of the amendment and the supplement.
Respectfully,
J O H N S. W O O D ,
Federal R eserve A gent.