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Federal reserve Bank OF DALLAS W IL L IA M FIRST H. WALLACE vice DALLAS, TEXAS 7 5 2 2 2 PR ESID ENT and chief operating officer J a n u a r y 15, 1988 C i r c u l a r 88-8 TO: B r o k e r - d e a l e r s and o t h e r s concerned in t h e Elev en t h Fed eral Reser ve D i s t r i c t SUBJECT Final r u le on amendment t o R egu lation T — C red it by Brokers and D ealers DETAILS The Board o f Governors o f t h e Federal Reserve System has a d op t ed an amendment to i t s R eg u l a ti o n T t o e n a b l e b r o k e r - d e a l e r s t o f a c i l i t a t e t h e e x e r c i s e o f employee s to c k o p t i o n s . The amendment p r o v i d e s a method by which b r o ke rs and d e a l e r s can t e m p o r a r i l y f i n a n c e t h e a c q u i s i t i o n o f s t o c k under employee s to c k o p t i o n p la n s by p e r m i t t i n g t h e advance o f fu nd s f o r a s h o r t p er i o d o f ti m e. In l i e u o f t h e s e c u r i t i e s t o be r e c e i v e d upon e x e r c i s e o f t h e o p t i o n , b r o k e r - d e a l e r s a r e allo we d t o a c c e p t a f u l l y e n d ors e d employee s t o c k o p ti o n wi th i n s t r u c t i o n s s ig n e d by t h e c u s to m er i n s t r u c t i n g t h e i s s u e r t o d e l i v e r t h e s e c u r i t i e s t o t h e b r o k e r - d e a l e r . The amendment becomes e f f e c t i v e Ja nu ar y 25, 1988. MORE INFORMATION Copies o f t h e f i n a l r u l e and t h e B o a r d ' s p r e s s r e l e a s e a r e a v a i l a b l e from t h i s Ban k' s P u b l i c A f f a i r s Department by c a l l i n g (214) 651-6289. The f i n a l r u l e a l s o w i l l be d i s t r i b u t e d i n s l i p - s h e e t form a t a l a t e r d a t e f o r i n c l u s i o n in y o u r R e g u l a ti o n s B i n d e r. For more i n f o r m a t i o n r e g a r d i n g R eg u l a ti o n T, p l e a s e c o n t a c t Dean A. Pankonien o f t h i s Ban k' s Legal Department a t (214) 651-6228. Sincerely yours, For additional copies of any circular please contact the Public Affairs Departm ent at (214) 6 51-6289. Banks and others are encouraged to use the follow ing incoming W ATS numbers in contacting this Bank (800) 4 42 -7 1 40 (intrastate) and (800) 5 27 -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)