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FE D E R A L R E S E R V E B A N K O F D A L L A S Station K, Dallas, Texas 7 5 2 2 2 C ir c u la r No. 84-50 April 9, 1984 TO: All member banks and others concerned in the Eleventh Federal Reserve D i s t r i c t ATTENTION: Chief Executive O ffic er SUBJECT: Deferral of the effective date for compliance with the completely revised Regulation T — Credit by Brokers and Dealers — to June 30, 1984 SUMMARY: The Board of Governors of the Federal Reserve System has announced a d e f e r r a l o f the e f f e c t i v e date f o r compliance with the revised Regulation T from March 31, 1984 to June 30, 1984. This d e f e r r a l has been granted due to o p eration al problems experienced by c e r t a i n brokers and d e a l e r s . Although the e f f e c t i v e date has been deferred to June 30, the Board expects c r e d i t o r s to make a good f a i t h e f f o r t to comply with the new r e g u la tio n as soon a f t e r March 31, 1984 as p o ss ib le . ATTACHMENTS: Board’s press r e l e a s e and m aterial p u b lic a tio n in the Federal Register MORE INFORMATION: Legal Department, Extension 6171 ADDITIONAL COPIES: Public A f f a i r s Department, Extension 6289 as submitted Banks and others are encouraged to use the following incoming WATS numbers in contacting 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. for This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE press release For immediate r e l e a s e March 26, 1984 The Federal Reserve Board today announced t h a t i t i s d e f e r r i n g th e e f f e c t i v e date f o r compliance with th e completely revised Regulation T—C redit by Brokers and D e a l e r s - - t o June 30, 1984. The Board sa id i t d eferred the e f f e c t i v e date of th e completely re v ised re g u l a t i o n in response to req uests by b r o k e r- d e a le r s encountering o pe ration al problems in conforming t h e i r computer systems to the requirements of th e revised r e g u l a t i o n . The e f f e c t i v e date had previously been d eferred from November 21, 1983 t o March 31, 1984. The revised r e g u la tio n governing c r e d i t extended by brokers and d ealers was adopted by t h e Board May 16, 1983. - 0- Federal Reserve System Regulation T 12 CFR Part 220 [Docket No. R-0389] Credit by Brokers and Dealers Complete Revision and Simplification of Regulation T Deferral of Effective Date AGENCY: Board of Governors of the Federal Reserve System. ACTION: Deferral of Effective Date. SUMMARY: The Board is extending, until June 30, 1984, the effective date for compliance with the completely revised Regulation T (governing credit extended by brokers and dealers), which was adopted by the Board on May 16, 1983 (48 FR 23161). The effective date was deferred once before to March 31, 1984 in light of unforeseen operational problems encountered by broker-dealers in conforming their computer systems to the requirements of the revised regulation (48 Fed. Reg. 51768). The Board has been apprised that not all broker-dealers will be able to resolve such problems by March 31, 1984. It is, therefore, deferring until June 30, 1984, the effective date of the newly revised Regulation T. DATE: The effective date for the revised Regulation T (12 CFR Part 220) is deferred until June 30, 1984. FOR FURTHER INFORMATION CONTACT: Robert Lord, Attorney, Division of Banking Supervision and Regulation, (202) 452-2781. SUPPLEMENTARY INFORMATION: On May 16, 1983 the Board adopted a completely revised Regulation T, governing credit extended by brokers and dealers (48 FR 23161, May 24, 1983). The new regulation was to become effective on - 2 - November 21, 1983 or any earlier date after June 20, 1983, at the option of the creditor. Subsequent to the adoption of revised Regulation T, however, several major broker-dealers informed the Board that due to unfore seen difficulties in programing their computer systems, they would need more time than originally expected to conform their accounts to the require ments of the new regulation. In requesting a deferred effective date, broker- dealers pointed to, among other things, the special temporary computer pro grams which had to be developed in order to provide support for the AT&T divestiture transactions. The broker-dealers have stated that an enormous amount of program and systems modifications are needed to adequately support the highly complex cash and margin transactions in the stock of AT&T and the seven new regional companies formed as a result of the divestiture, transactions in AT&T options. and for Because of these operational problems, the effective date of the newly-revised Regulation T was deferred until March 31, 1984 (48 Fed. Reg. 51768 November 14, 1983). The Board has recently been apprised that not all broker-dealers will be able to adopt their computer systems to the newly revised Regulation by March 31, 1984. Since a significant number of customer accounts will be affected by this Inability to comply with the the Board hereby defers the effective date Regulation byMarch of theregulation 31, 1984, toJune 30, 1984. Although the effective date has been deferred to June 30, the Board expects creditors make a good faith effort to comply with the new regulation as soon after March 31, 1984 as possible. List of Subjects in 12 CFR Part 220 Banks, Banking, Brokers, Credit, Federal Reserve System, Margin, Margin requirements, Investments, Reporting requirements, Securities. - 3 - By order of the Secretary of the Board of Governors, acting under delegated authority, March 23, 1984. (signed) William W. Wiles William W. Wiles Secretary of the Board
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