Full text of District Notices (Federal Reserve Bank of Dallas) : Amendments to Regulation T, Circular No. 80-82

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federal

Reserve Bank

DALLAS, TEXAS

of

Dallas

75222

Circular No. 80-82
April 24, 1980

AMENDMENTS TO REGULATION T
TO ALL MEMBER BANKS,
SECURITIES BROKERS AND DEALERS
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The Board of Governors of the Federal Reserve System has approved
several technical changes in Regulation T designed to reduce the administrative
burden placed on broker/dealers and their self-regulatory organizations. The
action becomes effective June 2 and comments will be accepted until April 30.
Comments should refer to Docket No. R-0245 and may be submitted to Theodore
E. Allison, Secretary, Board of Governors of the Federal Reserve System, 20th
Street and Constitution Avenue, N.W., Washington, D.C. 20551.
The changes involve increasing the time for making a margin deposit
from five to seven business days; allowing a self-regulatory organization (SRO)
to approve extension of time requests for margin accounts which are received
from creditors who are not members of the SRO; increasing from $100 to $500
the amount which a broker/dealer may disregard prior to taking action to
achieve compliance with the regulation, such as calling for additional cash or
collateral in liquidating the account; and permitting the postmark date to serve
as evidence of timely filing of a request for an extension of time by certain
broker/dealers.
The Federal Register document is enclosed.
Any questions con­
cerning the amendment should be directed to the Consumer Affairs Section of
our Bank Supervision and Regulations Department, Ext. 6171.
Sincerely yours,
Robert H. Boykin
First Vice President

Enclosure

Banks and others are encouraged to use the following incoming W A T S numbers in c ontacting this Bank:
1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the
extension referred to above.

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

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Federal Register / Vol. 45, No. 50 / Wednesday. March 12, 1980 / Rules and Regulations

FEDERAL RESERVE SYSTEM
12 CFR Part 220
[Regulation T; Docket No. R-0245]

Credit by Brokers and Dealers; Time
for Payment In General and Cash
Accounts and Extension of Time
Requests Received Through the Mail
AGENCY: B o ard o f G o v e rn o rs o f th e
F e d e ra l R e se rv e S ystem .
ACTION: F in al rule.
SUMMARY: In re s p o n s e to re q u e s ts , th e
B o ard is a d o p tin g a m e n d m e n ts to
R eg u latio n T th a t w ill: (1) c h a n g e th e
tim e p e rio d w ith in w h ic h d e p o s its m u st
b e m a d e in th e m a rg in a c c o u n ts from
five to se v e n b u s in e s s d a y s; (2) allo w a
self-reg u lato ry o rg a n iz a tio n (a se c u ritie s
e x c h a n g e o r a ss o c ia tio n ) to a p p ro v e
e x te n s io n o f tim e re q u e s ts fo r p a y m e n t
re c e iv e d from a n y b ro k e r-d e a le r, (8)
p e rm it th e p o stm a rk d a te to se rv e a s
ev id e n c e o f tim ely filing o f a re q u e s t fo r
a n e x te n s io n o f tim e b y c e rta in b ro k e rd e a le rs w h ile w ith d ra w in g a t th e sa m e
tim e a p rio r B o ard in te rp re ta tio n th a t
h o ld s o th e rw ise; a n d (4) in c re a s e th e de
minimis a m o u n t w h ic h triggers
re g u la to ry a c tio n b o th in th e m a rg in a n d
sp e c ia l c a s h a c c o u n ts from $100 to $500.
T h e B oard is ta k in g th is a c tio n to
re d u c e th e a d m in is tra tiv e b u rd e n p la c e d
o n b ro k e r-d e a le rs a n d th e ir selfre g u la to ry o rg a n iz a tio n s b y recog nizing
th e g eo g rap h ic d is p e rsio n o f th e
fin a n c ia l c o m m u n ity a n d re c e n t
d e v e lo p m e n ts in in fo rm a tio n p ro c e s sin g
te ch n o lo g y .
■ m c n V E d a te : Ju n e 2 ,1 9 8 0 w ith
co m m e n ts to b e a c c e p te d u n til A p ril 30,
I960.

ADDRESS: C o m m en ts, w h ic h s h o u ld re fe r
to D o ck et N o. R-0245, m a y b e m a ile d to
T h e o d o re E. A llison , S e c re ta ry , B o a rd o f
G o v e rn o rs o f th e F e d e ra l R e se rv e
S y stem , 2 0th S tre e t a n d C o n sititu tio n
A v e n u e , N .W ., W a sh in g to n , D.C. 20551
o r d e liv e re d to R o o m B-2223 b e tw e e n
8:45 a j n . a n d 5:15 p.m . C o m m en ts
re c e iv e d m a y a ls o b e in s p e c te d a t R oo m
B-1122 b e tw e e n 8:45 a.m . a n d 5:15 p.m .,
e x c e p t a s p ro v id e d in s e c tio n 261.6(a) o f
th e B o ard ’s R ule R eg ard in g A v a ila b ility
o f In fo rm a tio n (12 CFR $ 261.6(a)).
FOR FURTHER INFORMATION CONTACT:
P a ts y A b elle, S e n io r A tto rn e y , o r
T h e o d o re W . P ru sh , S e n io r S e c u ritie s
R e g u latio n A n a ly st, S e c u ritie s
R eg u latio n S ectio n, D iv isio n o f B an kin g
S u p e rv isio n a n d R eg ulation , B o ard o f
G o v e rn o rs o f th e F e d e ra l R eserv e
S y stem , W a sh in g to n , D.C. 20551 (202­
452-2781).
SUPPLEMENTARY INFORMATION: B e c a u se
th is is a ru le c h a n g e w h ic h re lie v e s a
re s tric tio n , th e re q u ire m e n ts o f 5 U .S.C.
553 w ith re s p e c t to n o tic e a n d p u b lic
p a rtic ip a tio n w e re n o t fo llo w e d b e fo re
ad o p tio n . H o w e v e r, a d e fe rre d effectiv e
d a te h a s b e e n p ro v id e d a n d co m m e n ts
o n th e a m e n d m e n t w ill b e a c c e p te d u n til
A p ril 30,1980. In re s p o n s e to re q u e s ts
from th e N e w Y o rk S to c k E x ch an g e , Inc.
a n d th e N a tio n a l A sso c ia tio n o f
S e c u ritie s D e a le rs, Inc. th e B o a rd o f
G o v e rn o rs a m e n d s R eg u latio n T (12 CFR
220) to e x te n d th e tim e w ith in w h ic h
p a y m e n t is d u e in th e m a rg in a c c o u n ts
from five to s e v e n b u s in e s s d a y s. T h e
B o a rd a lso a m e n d s th e p ro v isio n s o f th e
g e n e ra l ru le to p e rm it a n y selfre g u la to ry o rg a n iz a tio n to a p p ro v e
e x te n sio n o f tim e re q u e s ts fo r p a y m e n t
re c e iv e d fro m a n y b ro k e r-d e a le r. T h e se
tw o c h a n g e s w ill b rin g th e p ro v isio n s o f
th e m a rg in a c c o u n ts in to c o n fo rm ity
w ith th o s e o f th e sp e c ia l c a s h a c c o u n t
A n o th e r a m e n d m e n t w ill p e rm it a selfre g u la to ry o rg a n iz a tio n to a c c e p t a s
tim e ly filed e x te n s io n o f tim e re q u e s ts
re c e iv e d fro m c e rta in b ro k e r-d e a le rs v ia
th e m a il w h ic h a re p o s tm a rk e d n o la te r
th a n m idnig ht o f th e d a te p a y m e n t is
due. T h is a m e n d m e n t re p la c e s a n
in te rp re ta tio n (1939 F e d e ra l R eserv e
B ulletin 253) c o n c ern in g th is su b ject.
In a d d itio n , b o th th e m a rg in a c c o u n ts
a n d th e sp e c ia l c a s h a c c o u n t allo w a
b ro k e r-d e a le r to re fra in fro m tak in g
a c tio n to a c h ie v e c o m p lia n ce w ith th e
re g u la tio n (su ch a s callin g fo r a d d itio n a l
c a s h o r c o lla te ra l o r liq u id a tin g th e
a c c o u n t) if th e a m o u n t d u e d o e s n b t
e x c e e d $100. T h is figure h a s b e e n
u n c h a n g e d in th e c a s h a c c o u n t sin c e
1949 a n d in th e m a rg in a c c o u n t s in c e
1951. G iv e n th e in c re a s e d c o sts o f d o in g
b u s in e s s , th e B o a rd In c re a se s th e de
minimis a m o u n t to $500.

A c co rd in g ly , p u rs u a n t to s e c tio n s 7
a n d 23 o f th e S e c u ritie s E x c h a n g e A c t o f
1934, a s a m e n d e d (15 U.S.C. 78 g a n d w ),
th e B o a rd a d o p ts th e follo w ing
a m e n d m e n ts to SS 220.3 a n d 220.4 o f
R e g u latio n T (12 C FR P a r t 220):
8220.3 [Amended]
1. T o a m e n d S220.3(b)(1) (i) a n d (ii) b y
d e le tin g th e w o rd s “5 full b u s in e s s
d a y s ” a n d su b stitu tin g th e re fo r th e
w o rd s "7 full b u s in e s s d a y s ”;
2. T o a m e n d S220.3(e) b y d eletin g th e
w o rd s “5 -d ay p e rio d ” a n d su b stitu tin g
th e re fo r th e w o rd s “7 -d ay p e rio d ”;
(3) T o re v is e § 220.3(f) to r e a d a s
follow s:
§ 220.3 General accounts.

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(f) E x te n s io n s o f tim e. If a n
a p p ro p ria te c o m m itte e o f a n a tio n a l
se c u ritie s e x c h a n g e o r a n a tio n a l
se c u ritie s a s s o c ia tio n is sa tis fie d th a t
th e c re d ito r is ac tin g in g o o d fa ith in
m a k in g th e ap p lic a tio n , a n d th a t
e x c e p tio n a l c irc u m s ta n c e s w a r r a n t su ch
a c tio n , su c h co m m ittee m a y e x te n d th e
7 -d ay p e rio d sp e c ifie d in p a ra g ra p h (b)
o f th is s e c tio n fo r o n e o r m o re lim ited
p e rio d s c o m m e n su ra te w ith th e
c irc u m s ta n c e s. A p p lic a tio n s sh o u ld b e
file d a n d a c te d u p o n p rio r to th e e n d o f
th e 7-d ay p e rio d o r th e e x p ira tio n o f a n y
su b s e q u e n t e x te n sio n . H o w e v e r, a n
a p p lic a tio n m a y b e a c e p te d a s tim ely
file d from firm s h a v in g n o d ire c t
e le c tro n ic a c c e s s to th e e x c h a n g e o r
a s s o c ia tio n if it is p o s tm a rk e d n o la te r
th a n m id n ig h t o f th e la s t d a y o f th e 7d a y p e rio d o r a n y su b s e q u e n t e x te n sio n .
4. T o a m e n d S220.3(g)(3) b y d eletin g
th e figure “$100” a n d su b stitu tin g
th e re fo r th e figure "$500”;
5. T o re v is e S220.4(c)(6) to re a d a s
follow s:
S 220.4 Special accounts.

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(c) S p e c ia l c a s h a cco u n t.

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(6) If a n a p p ro p ria te co m m ittee o f a
n a tio n a l se c u ritie s e x c h a n g e o r a
n a tio n a l se c u ritie s a s s o c ia tio n is
sa tis fie d th a t th e c re d ito r is a c tin g in
g o o d f a ith in m ak in g th e a p p lic a tio n ,
th a t th e a p p lic a tio n r e la te s to a bona
fide c a s h tra n s a c tio n , a n d th a t
e x c e p tio n a l c irc u m s ta n c e s w a r r a n t su ch
a c tio n , su c h c o m m itte e (i) m a y e x te n d
a n y p e rio d sp e c ifie d in s u b p a ra g ra p h s
(2), (3), (4), o r (5) o f th is p a ra g ra p h fo r
o n e o r m o re lim itie d p e rio d s
c o m m e n su ra te w ith d ie c irc u m s ta n c e s,
o r (ii), in c a s e a s e c u rity p u rc h a s e d b y
th e c u sto m e r in th e s p e c ia l c a s h a c c o u n t
is a m a rg in o r e x e m p te d s e c u rity , m a y
a u th o riz e th e tr a n s fe r o f th e tra n s a c tio n s
to a g e n e ra l acc o u n t, s p e c ia l b o n d

Federal Register / Vol. 45, No. 50 / Wednesday, March 12, 1980 / Rules and Regulations
a c c o u n t sp e c ia l c o n v e rtib le sec u rity
a c c o u n t o r s p e c ia l o m n ib u s a c c o u n t
a n d th e c o m p le tio n o f su c h tra n s a c tio n
p u rs u a n t to th e p ro v isio n s o f th is p a r t
re la tin g to su c h a n a c c o u n t
A p p lic a tio n s u n d e r (i) a b o v e sh o u ld b e
file d a n d a c te d u p o n p rio r to th e e n d o f
th e 7 -d ay p e rio d o r th e e x p ira tio n o f a n y
su b s e q u e n t ex te n sio n . H o w ev er, a n
a p p lic a tio n m a y b e a c c e p te d a s tim ely
filed from firm s h a v in g n o d ire c t
e lec tro n ic a c c e s s to th e e x c h a n g e or
a s s o c ia tio n if it is p o stm a rk e d n o la te r
th a n m id n ig h t o f th e la s t d a y o f th e 7d a y p e rio d o r a n y s u b se q u e n t ex ten sion .

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§220.4 [Amended]
6. T o a m e n d § 220.4(c)i7) b y deleting
th e figure “$100” a n d su b stitu tin g
th e re fo r th e figure “$500”.
7. T o a m e n d S 220.4(h)(2) b y deleting
th e w o rd s “5 full b u s in e s s d a y s ” a n d
su b stitu tin g th e re fo r the w o rd s “7 full
b u sin e ss d a y s ”;

By order of the Board of Governors of the
Federal Reserve System.
M arch 6,1980.

Theodore E. Allison,
Se c r e t a r y o f the Boa rd.

[FR Doc. 80-7831 Filed 3-11-80; 8:49 am)

BILLINGCODE 6210-01-M

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