View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Federal R eserve Bank


f ir s t vice

p resid en t


May 19, 1989

DALLAS, TEXAS 7 5 2 2 2

Circular 89-34


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

The Board of Governors of the Federal Reserve System has revised the
list of over-the-counter (OTC) stocks, effective May 8, 1989, 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 13, 1989, is
available from the Public Affairs Department.
The Board's press release and the material as published in the
Federal Register announcing revisions to the list of OTC stocks effective May
8, 1989 are attached.
For further information regarding marginable OTC stock requirements,
please contact Gary S. Renna at (214) 651-6228. For additional copies, please
contact the Public Affairs Department at (214) 651-6266.
Sincerely yours,

For additio nal copies of any circular please c o ntact the Public A ffairs Departm ent at (214) 6 51 -6 2 8 9 . Banks and others are
encouraged to use the following in coming 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 (

FEDERAL RESERVE press release

For use in morning papers
April 24, 1989

April 21, 1989

The Federal Reserve Board today published a revised
list of over-the-counter (OTC) stocks that are subject to its
margin regulations, effective May 8, 1989.
This revised List of Marginable OTC Stocks supersedes
the List of Marginable OTC Stocks that was effective on
February 13, 1989.

The changes that have been made to the List,

which now includes 3,020 OTC stocks, are as follows:

42 stocks have been included for the first
time, 34 under National Market System (NMS)


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


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

This List is published by the Board for the information
of lenders and the general public.

It includes all

over-the-counter securities designated by the Board pursuant to



2 -

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.


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 August 1989.
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) as stocks listed on national
securities exchanges.

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.


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.


3 -

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.

Federal Register / Vol. 54, No. 77 / Monday, April 24, 1989 / Rules and Regulations


12 CFR Parts 207,220,221, and 224
[R e g u la tio n s G, T, U, a n d X]

Securities Credit Transactions; List of
Marginable OTC Stocks

of Governors of the
Federal Reserve System.
ACTION: Final rule; determ ination of
applicability of regulations.
The List of Marginable OCT
Stocks is comprised of stocks traded
over-the-counter (OTC) that have been
determ ined by the Board of Governors
of the Federal Reserve System to be
subject to the margin requirem ents
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 which w as
effective February 13,1989, and will
serve to give notice to the public about
the changed status of certain stocks.
EFFECTIVE DA TE May 8, 1989.
su m m a ry :


Peggy Wolffrum, Securities Regulation

18858_____ Fedora! Register f Vol. 54, Ne. 77 / Monday, April 24,1989 / Rules and Regulations
A nalyst, Division of Banking
Supervm cm and Regulation, (202) 4522781. For the hearing im paired onty,
Eam esiine Hill o r Dorothea Thompson,
Telecommunications Device for the Deaf
(TDD) (202) 452-3544, Board of
Governors of the Federal Reserve
System, W ashington, DC 20551.
below are stocks representing additions
to or deletions from the B oard's List of
M arginable OTC Stocks. This
supersedes the last la st w hich w as
effective February 13,1989. A dditions
and deletions for that LiBt w ere
published on January 30,1989 {54 FR
42154). A copy of the complete List
incorporating these additions and
deletions is available from the Federal
Reserve Banks.
The List of M arginable OTC Stocks
includes those stocks th at m eet the
criteria in Regulations G, T and U (12
CFR Parts 207, 220 an d 221,
respectively). This determ ination also
affects the applicability o f Regulation X
(12 CHI Part 224). T hese stocks have the
degree of national investor interest, the
depth and breadth o f m ark e t and the
availability of inform ation respecting
the stock and its issuer to w arrant
regulation in the sam e fashion a s
exchange-traded securities. The List
also includes any stock designated
under a Securities and Exchange
Commission (SEC) rule as qualified for
trading in the national m arket system
(NMS security). A dditional OTC stocks
may b e designated as NMS securities in
the interim betw een the Board’s
quarterly publications. They will
become autom atically marginable at
broker-dealers upon the effective date of
their NMS designation. The nam es of
these stocks are available a t the Board
and the SEC and w ill be incorporated
into the B oard's next quarterly List.
The requirem ents of 5 U.S.C. 553 w ith
respect to notice and public
participation w ere not followed in
connection w ith the issuance of this
amendment due to the objective
character of the criteria for inclusion
and contained 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 inform ation would
be gained by public participation. The
full requirem ents of5U .S.C . $ 553 w ith
respect to deferred effective d ate have
not been followed in connection w ith
the issuance of this am endm ent because
the Board finds that i t is m the public
interest to facilitate investm ent and
credit decisions b ased in whole or in
part upon the com position o f this List as
soon «a possible. T he B oard h a s
responded to a request b y the public and

allow ed a two-week delay before the
List is effective.
List of Subjects
12 CFR P art 207
Banks, Banking, Credit, Federal
Reserve System, Margin, M argin
requirem ents, N ational M arket System
(NMS Security), Reporting and
recordkeeping requirem ents. Securities.
12 CFR Part 220
Banks, Banking, Brokers, Credit,
Federal Reserve System, Margin, Margin
requirem ents, Investm ents, N ational
M arket System (NMS Security),
Reporting and recordkeeping
requirem ents, Securities.
12 CFR P art 221
Banks, Banking, Credit, F ederal
Reserve System, Margin, M argin
requirem ents, N ational M arket System
(NMS Security), Reporting and
recordkeeping requirem ents. Securities.
12 CFR P a it 224
Banks, Banking, Borrowers, C red it
Federal Reserve System, M argin, Margin
requirem ents. Reporting and
Recordkeeping requirem ents, Securities.
Accordingly, pursuant to the authority
of sections 7 and 23 o f the Securities
Exchange A ct of 1934, as am ended (15
U.S.C. 78g and 78w), an d in accordance
w ith 12 CFR 207.2(k) and 207.6(c)
(Regulation G), 12 CFR 220.2(b) and
220.17(c) (Regulation T), and 12 CFR
221.2(j) and 221.7(c) (Regulation U),
there is se t forth below a listing of
deletions ba m and additions to the
Board's l i s t of M arginable OTC Stocks:
Deletions From l i s t
S to cks R em oved For F ailing C ontinued
L isting R equirem ents
202 D ata Systems, Inc.
$.10 p ar common
Amfed Financial Corporation
$.01 p a r common
A tlantic Perm anent Savings Bank F.S.B.
$1.00 par common
Automatix Incorporated
$.05 par common
Autospa Corporation
$.01 par common
Broadview Savings Bank
No par common
Card*Tel, Inc.
$.01 p a r common
Commonwealth Savings and Loan
A ssociation F .A (Florida)
$1.00 par common
Computer Components Corporation
$.01 p a r common
W arrants (expire 0&-16-91)
Delta OS Corporation

$.01 par common
Dionica, inc.
$.01 par common
■Environmental Treatm ent &
Technologies Corp.
8% convertible subordinated
Enzon, Inc.
W arrants (expire 02-15-89)
Farragut Mortgage Company, Inc.
$.10 p ar common
Federal Savings Bank of Puerto Rico.
$1.00 p a r common
Financial Benefit Group, Inc.
Class B, $.01 p ar common
First Colorado Financial Crap.
$1.00 p ar common
First Farw est Corporation
$2.50 p ar common
First Federal Savings of A rkansas, FA .
$.01 p ar common
Hospital-Newspapers Group, Inc.
$.001 par common
Interactive Technologies, Inc.
No p a r common
W arrants (expire 03-06-01)
Lasertechnics, Inc.
$.01 p ar common
MCI Communications Corporation
7%% convertible subordinated
N ational H ealthcare, inc.
$£1 par common
Nova Pharm aceutical Corporation
Class B, w arrants (expire 02-05-69)
Novo Corporation
$.01 par common
Peregrine E ntertainm ent Ltd.
No par common
Physio Technology Inc.
No p a r common
Piezo Electric Products, Inc.
$1.00 p ar cumulative convertible
Pubco Corporation
$X)1 par common
Radionics, inc.
No par common
Rise Technology, Inc.
$.01 p ar common
Royal Pahn Savings Bank (Florida)
$1.60 p ar common
Sis Corporation
No p ar common
SneQing and Snelling, inc.
$.05 p ar common
Sybra, inc.
$.10 p ar common
T elequest inc.
No p ar common
Texas American Energy C orporation
12%% convertible subordinated
Travelers Real Estate Investm ent Trust
No p ar shares o f beneficial interest
Travelers Realty Incom e Investors
No p ar sh ares ofbeneficial interest

Fedoral Register / Vol. 64, No. 77 / Monday. April 24, 1989 / Rules and Regulations_____ 16359
Trio-Tech International
No par common
S to cks R em oved fo r L isting on a
N ational Securities Exchange or Being
In vo lved in an A cquisition
Bank of D elaw are Corporation
$.10 par common
Budget Rent a Car Corporation
$.01 par common
Chemclear, Inc.
$.01 p ar common
Citizens & Southern Corp.
$2.50 par common
Computer Entry Systems Corporation
$.05 par common
Continuum Company, The
$.10 par common
Eaton Financial Corporation
$.10 par common
Electro-Nucleonics, Inc.
$.02 V2 par common
Equion Corporation, The
$.01 par common
First M aryland Bancorp
$5.00 par common
First Service Bank for Savings
(M assachusetts)
$.10 par common
Galactic Resources Ltd.
No par common
Henley M anufacturing Corp.
$.01 par common
Huntingdon International Holdings PLC
American D epository Receipts
LA . Gear, Inc.
No par common
Langley Corporation
$1.00 par common
Laurel Entertainment, Inc.
$.001 par common
Major Video Corp.
$.001 par common
Malrite Communications Group, Inc.
$.01 par common
Class A $ 01 par common
M edicare-Glaser Corporation
$.50 par common
Metro Mobile CTS, Inc.
Class A, convertible, $.10 par common
Class B, $.10 par common
Micro D, Inc.
$.01 par common
MNC Financial Inc.
$2.50 par common
Mobile Communications Corporation of
Class A, $1.00 par common
Class B, $1.00 par common
Morino, Inc.
$.01 par common
Northern Air Freight, Inc.
$.01 par common
OMI Corp.
$.50 par common
$1.00 par convertible exchangeable
Republic American Corporation
$.01 par common

Reynolds and Reynolds Company, Inc.
C lass A, $.625 par common
Scicom D ata Services, Ltd.
$.10 par common
Shoney’s, Inc.
$1.00 par common
Specialty Composites Corporation
$.01 par common
Stanley Interiors Corporation
$.01 par common
Temco Home H ealth Care Products
$.01 par common
U.S. H ealth Inc.
$.0556 par common
Union N ational Corporation
$1.00 par common
Union Planters Corporation
$5.00 par common
University Savings Bank
$.01 par common
W endt-Bristol Company, The
$.01 par common
W arrants (expire 10-16-91)
W illiams, A.L., Corporation, The
$.10 par common
W ilson Foods Corporation
$.50 par common
W indmere Corporation
$.10 p ar common
Additions to the List
Anangel-American Shipholders Limited
Am erican Depository Receipts
A rksansas Freightways Corporation
$.01 par common
BF Enterprises, Inc.
$.10 par common
BTU International, Inc.
$.01 par common
Callon Consolidated Partners, L.P.
Limited partnership units
C entral & Southern Holding Company
$1.00 par common
Chemex Pharm aceuticals, Inc.
1989-1 W arrants (expire 03-31-94)
Communication Cable, Inc.
$1.00 par common
Condor Services, Inc.
$.01 par common
Corporate Capital Resources, Inc.
$.025 par common
Dover Regional Financial Shares
No par shares of beneficial interest
Ecogen, Inc.
$.01 par common
Electrosource, Inc.
$.10 par common
Equity Bank, The (Connecticut)
$10.00 par common
Farm & Home Financial Corporation
13% Series A, cumulative
exchangeable preferred
FSI International, Inc.
No par common
Hitox Corporation of America
$.25 par common
M arcor Development Company, Inc.
$.01 par common
Mobile Telecommunication
Technologies Corp.

$.01 p ar common
NAC RE Corp.
6%% convertible subordinated
Network G eneral Corporation
$.01 par common
Nooney Realty Trust, Inc.
$1.00 par common
North American Bancorporation Inc.
$5.00 par common
Nucorp, Inc.
W arrants (expire 10-31-89)
Office Club, Inc., The
No par common
Pettibone Corporation
$.01 par common
Premier Financial Services, Inc.
$5.00 par common
Pricor Incorporated
$.01 par common
Provident Bancorp, Inc.
No par common
Ravenswood Financial Corporation
$1.00 par common
Red Eagle Resources Corporation
$.10 par common
Rocking Horse Child Care Centers of
America, Inc., The
$.001 par common
Simetco, Inc.
$1.00 par common
Southern Educators Life Insurance
$.50 par common
Stratford American Corporation
$.01 par common
Tejas Gas Corporation
$.25 par common
Transmation, Inc.
$.50 par common
Trimas Corporation
$.01 par common
United Federal Bancorp, Inn.
$.01 par common
Utah Medical Products, Inc.
$.01 par common
Vanfed Bancorp
$1.00 par common
WLR Foods, Inc.
$1.00 par common
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
265.2(c)(18)), April 21,1989.
W illiam W . W iles,

Secretary of the Board.
[FR Doc. 89-9706 Filed 4-21-89; 8:45 am]

DALLAS. TEXAS 7 5 2 2 2

U.S. P O S T A G E

Pe rmit No. 151

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