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F ederal r e s e r v e Ba n k o f Dallas
DALLAS. T E X A S
75222
Circular No. 69-197
August
1969
LIST OF OTC MARKET MAKERS
To All Banks and Others Concerned
in the Eleventh Federal Reserve District:
Enclosed is a copy of a list of broker/dealer firms
that have filed Form X-17A-12(l) with the Securities and Exchange
Commission, in order to qualify as OTC market-makers under sec
tion 221.3(w) of Regulation U, and the OTC margin stocks in
respect of which each has qualified.
Also enclosed is a copy of a letter of the Board of
Governors of the Federal Reserve System which is being sent to
interested persons explaining the exemption.
Sample copies of Form F.R. U-2 were furnished to all
banks in the District with our Circular No. 69-19^ dated July 31*
1969, for use in printing their supplies.
Additional copies of these documents will be furnished
upon request.
Yours very truly,
P. E. Coldwell
President
Enclosures (2)
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
LIST OF OTC MARKET MAKERS
as of July 18, 1969
(Prepared for vise by banks in connection with extensions
of credit pursuant to section 221.3(w) of Regulation U)
This list of "OTC market makers" comprises firms
that have filed Form X-17A-12(1), the "Notification by OTC
market makers in OTC margin securities", with the Securities
and Exchange Commission, and the OTC margin stocks in respect
of which each such firm had filed such form, as of the above
date.
In determining whether a broker/dealer has filed
Form X-17A-12(1) in respect of OTC margin stock being pledged
as collateral to secure credit extended pursuant to section
221.3(w) (but for this purpose only), a bank may rely on the
most recent issue of this list, or a supplement thereto. A
bank extending such credit must also obtain from the broker/
dealer a properly executed Form F.R. U-2, and must accept
such form in good faith, as defined in sections 221.3(a) and
221.3(w) of Regulation U.
Copies of supplements and of subsequent issues of
the list may be obtained from the Federal Reserve Bank of the
district in which the head office of the bank extending such
credit is situated.
BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
2
L i s t o f OTC Market Makers - J u ly 18, 1969
Name of Broker-Dealer
Name of Security
Adams & Hinckley
Fidelity Union Trust Company
First Merchants National Bank,
Asbury Park
Monmouth County National Bank
National Newark & Essex Bank
New Jersey National Bank & Trust Co.
Trust Company of New Jersey
Advest Company
Addison - Wesley Publishing
Company
Baird-Atomic Inc.
Bolt, Beranek & Newman Inc.
Epsco Inc.
Jamesbury Corp.
Kaman Corp. Class A
Keyes Fibre Co.
MPB Corp.
Manufacturers & Traders Trust Co.
Millipore Corp.
Southern New England Telephone Co.
Superior Electric Co.
Trico Products Corp.
Allen & Company
American Express
American Heritage Life Ins. Co.
(Florida)
American Re-Insurance Co.
Atlanta Gas Light Company
Cascade Natural Gas Corporation
Central Vermont Public Service Corp.
Commonwealth Telephone Company
Connecticut General Insurance Corp.
Cooper Laboratories, Inc.
El Paso Electric Company
Florida Telephone Corporation
The Franklin Life Insurance Co.
(Illinois)
Franklin National Bank (New York)
The Gas Service Company
Georgia International Corporation
Hartford Fire Insurance Co.
Horizon Corporation
Allen & Company (con't)
Indiana Gas Co., Inc.
Iowa Southern Utilities Company
Kentucky Central Life Insurance
Company
King Resources Company
Liberty Equities Corporation
Life Insurance Company of
Kentucky
Lilly, Eli and Company
Lincoln National Corporation
Lomas and Nettleton
Financial Corporation
Monarch Capital Corporation
National Semiconductor Corporation
National Western Life Insurance
Company
Nationwide Corporation
New England Gas and Electric
Association
North Carolina Natural Gas
Corporation
Northwest Natural Gas Company
(Oregon)
Pennsylvania Gas & Water Company
Piedmont Natural Gas Company,
Incorporated
Public Service Company of North
Carolina, Incorporated
Public Service Company of New
Hampshire
Public Service Company of New
Mexico
The Saint Paul Companies, Inc.
Southern Union Gas Company
Southwest Gas Corporation
Transcontinental Gas Pipe Line
Corporation
Trico Products Corporation
United States Fidelity and Guaranty
Company (Maryland)
University Computing Company
Washington Natural Gas Company
3
L i s t o f OTC Market Makers - J u ly 1 8, 1969
American Securities Corporation
American Express
Bankamerica Corporation
The Bank of New York
Capital Holding Corporation
The Cleveland Trust Company
The Franklin Life Insurance Company
( 1 1 1 .)
Gulf Life Holding Company
Hartford Fire Insurance
Company
Kentucky Central Life Insurance
Company
Lilly, Eli and Company
Manufacturers and Traders Trust Co.
Monarch Capital Corp.
State Street Bank & Trust Co.
Arthurs, Lestrange & Co.
Pennsylvania Engineering Corp.
Western Pennsylvania National
Bank
Baird & Co. Inc., Robert W.
Advance Ross Corp.
Kearney & Trecker Corp.
Management Assistance, Inc.
Midas International
Corporation Class A
North Central Airlines
Old Line Life Insurance Co.
of America
Western Publishing Company
Wisconsin Power & Light Co.
Baker, Watts & Co.
Monumental Corporation
United States Fidelity & Guaranty Co.
Bear, Stearns & Co.
American Express
Anheuser-Busch Inc.
Bankamerica Corp.
Bank of New York
Bolt, Beranek & Newman
Citizens and Southern National Bank
of Georgia
Combined Insurance Company of America
Connecticut General Ins.
Crocker Citizens National Bank
Bear, Stearns & Co. (con't)
Eli Lilly & Co.
First Bank System Inc.
(Minn.)
First National Bank of Boston
First National Bank of Chicago
Franklin Life Insurance
Government Employees Insurance
Hanover Insurance Co.
Hartford Fire Insurance Co.
Lincoln National Corporation
Manufacturers National Bank
of Detroit
Mellon National Bank & Trust
Monarch Capital Corporation
National Bank of Detroit
Pabst Brewing Company
St. Paul Companies
Security Pacific National Bank
U.S. Fildelity and Guaranty
University Computing Co.
Variable Annuity Life Insurance
Corp.
Wells Fargo Bank
Bishop & Co. Inc., M. H.
North Central Airlines
The Cornelius Company
Blalack/Wells/Associates Inc.
Anadite Inc.
Management Assistance Inc.
Titan Group Inc.
Boettcher & Company
Fidelity Corporation
(Virginia)
King Resources
Company
Unicoa Corporation
Brown & Sons, Alex.
American Fidelity Life Ins. Co.
(Fla.)
American Security and Trust Co.
First Virginia Bankshares Corp.
Gino's Inc.
ISI Corporation
Millipore Corporation
Monumental Corporation
4
L i s t o f OTC Market Makers - J u ly 18, 1969
Brown & Sons, Alex, (con't)
Philadelphia Life Insurance Co.
Ransburg Electro-Coating Corp.
United States Fidelity and Guaranty Co.
Brown, Allen & Company, Inc.
Contran (Formerly Texas Consumer
Finance Corporation)
Landa Industries
Southland Corporation
Burns, Stix, Friedman & Co., Inc.
Associated Coca-Cola Bottling Co.,
Inc.
Kaman Corporation
Class A
Parkview-Gem, Inc.
Carolina Securities Corporation
North Carolina Natural Gas Corp.
Piedmont Aviation, Inc.
Cartwright, Valleau & Co.
American Re-Insurance
Company
California-Western States Life I
Company
Nationwide Corporation
Class A
Clark, Dodge & Co. , Inc.
Millipore Corp.
Collins Securities Corp.
American Nuclear Corporation
Energy Resources Corp.
Oil Shale Corp.
Texas American Oil Corp.
Webb Resources Corp.
Conlon and Company, Inc., B.J.
Anchor Corp.
Dalto Electronics Corp.
Energy Resources Corp.
Farrington Manufacturing Co.
International Book Corp.
Keystone Custodian Funds, Inc.
King Resources Company
Nationwide Corp.
The Oil Shale Corp.
Courts & Co.
Atlanta Gas Light Co.
Citizens & Southern National Bank
of Georgia
Colonial Stores, Inc.
Dalto Electronics Corp.
Interfinancial, Inc.
Interstate Life & Accident Insur
ance Co. (Tennessee)
Craigie Incorporated
Brenco Inc.
Fidelity Corp.
First & Merchants Corp.
First Virginia Bankshares Corp.
United Virginia Bankshares
Virginia Commonwealth Bankshares
Virginia National Bank
Cutler, Yantis & Co.
American Re-Insurance Co.
Gas Service Co.
North Central Airlines, Inc.
Pennsylvania Engineering Corp.
Titan Group, Inc.
Wisconsin Power & Light Co.
Dain, Kalman & Quail, Inc.
Applebaums Food Markets, Inc.
Buckbee-Mears Co.
The Cornelius Co.
Dayton Corp.
First Bank System, Inc.
Northwestern National Life Insurance
Company
Otter Tail Power Co.
The Saint Paul Companies, Inc.
Dempsey-Tegeler & Co., Inc.
Combined Insurance Co. of America
Continental Computer Assoc., Inc.
Erie Technological Products, Inc.
The Franklin Life Insurance Co.
( 1 1 1 .)
Liberty Equities Corp.
North Central Airlines, Inc.
Titan Group, Inc.
Dryfoos & Co., J.M.
Continental Computer
Federal Company
L i s t o f OTC Market Makers - J u ly 18, 1969
Dryfoos & Co., J.M. (con't)
First Mortgage Investors
Ginofs Incorporated
Perini Corp.
Ransburg Electro Coating Corp.
Edwards and Sons Inc., A.G.
Associated Coca-Cola Bottling Co., Inc.
Browning Arms Company
Clinton Oil Company
D.P.A. Inc.
Farrington Manufacturing Company
Kentucky Central Life Insurance Co.
Liberty Equities Corp.
The Oil Shale Corp.
Edwards & Hanley
Oil Shale Corp.
Ormont Drug
Elkins, Morris, Stroud & Co.
The Fidelity Corporation of Penna.
The First Pennsylvania
Corporation
Girard Company
The Philadelphia National Bank
Philadelphia Suburban Water Co.
Provident National Bank
Faulkner, Dawkins & Sullivan
Photon, Inc.
Recognition Equipment Inc.
Tiffany & Co.
First California Company
Bankamerica Corp.
Northwest Natural Gas Corporation
First Southeastern Company
The Downtowner Corp.
Great Commonwealth Life Insurance Co.
Interfinaneial, Inc.
Scripto, Inc.
First Southwest Company
American Greetings Corp. Class A
American National Insurance Co.
(Texas)
Dallas Airmotive, Inc.
El Paso Electric Company
Fidelity Union Life Insurance Co.
(Texas)
5
First Southwest Company (con't)
First National Bank in Dallas
The Franklin Life Insurance Co.
(1 1 1 .)
Great Commonwealth Life Insurance
Co.
Gulf Life Holding Company
Lomas and Nettleton Financial Corp.
Public Service Co. of New Mexico
Recognition Equipment Inc.
Republic National Bank of Dallas
Republic National Life Insurance Co.
(Texas)
Scientific Control Corporation
Shop Rite Foods, Inc.
Southern Union Gas Company
The Southland Corporation
Taylor Wine Company, Inc.
Tracor, Inc.
Transcontinental Gas Pipe Line Corp.
University Computing Company
Variable Annuity Life Insurance Co.
of America
Fox & Co., Inc., P.F.
Addison-Wesley Publishing Co., Inc.
Class B
Allegheny Beverage Corp.
American Maize-Products Company
American Welding & Manufacturing Co.
Anchor Corporation Class B
Arkansas Western Gas Company
Arvida Corporation
Associated Coca-Cola Bottling Co. ,
Inc.
Delhi Australian Petroleum Ltd.
Diamond Crystal Salt Company
Farrington Manufacturing Company
Florida Telephone Corporation
Class A
Gleason Works
Graphic Controls Corporation
Keystone Custodian Funds, Inc.
Class A
Management Assistance, Inc.
North Carolina Natural Gas Corp.
Pennsylvania Gas & Water Company
Piedmont Natural Gas Company, Inc.
The Seven-Up Company
Simon & Schuster, Inc.
Southern Union Gas Company
L i s t o f OTC Market Makers - J u ly 18, 1969
6
Fox & Co., Inc., P.F. (con't)
Southwest Gas Corporation
The Standard Register Company
Taylor Wine Company, Inc.
Tiffany & Company
Trico Products Corporation
Wallace Business Forms Inc.
Western Publishing Co. Inc.
Hay, Fales & Co., Inc.
Great Commonwealth Life Insurance Co.
National Western Life Insurance Co.
Ginberg & Co. Inc., Frank
First National Life Ins. Co. of Ala.
Keefe, Bruyette & Woods, Inc.
Bankamerica Corporation
The Bank of California, N. A.
Bank of New York Co., Inc.
Baystate Corporation
The Citizens and Southern National
Bank of Georgia
The Cleveland Trust Company
Crocker National Corporation
The Detroit Bank and Trust Co.
First and Merchants Corp.
First Bank System Inc.
The First National Bank of Boston
The First National Bank of Chicago
First National Bank in Dallas
First National Holding Corp. (Memphis)
First Pennsylvania Corp.
Manufacturers National Bank of
Detroit
Mellon National Bank and Trust Co.
National Bank of Detroit
The National City Bank of Cleveland
Pittsburgh National Corp.
Republic National Bank of Dallas
Seattle-First National Bank
United Virginia Bankshares, Inc.
The Valley National Bank of Arizona
Virginia Commonwealth Bankshares
Virginia National Bank
Wachovia Corp.
Wells Fargo and Company
Frankel & Co. Inc., Wm V.
Horizon Corp.
Frumin, Murray & Company
Diamond Crystal Salt Co.
Funk, Hobbs & Hart, Inc.
Texas International Airlines, Inc.
Goelzer & Co., Inc.
Herff Jones Co.
Goldman, Sachs & Co.
American District Telegraph Company
American Express Co.
American Greetings Corporation Class A
Anheuser-Busch, Incorporated
Bankamerica Corporation
Baystate Corporation
The Brush Beryllium Company
Combined Insurance Co. of America
Connecticut General Insurance Corp.
The Franklin Life Insurance Co. (111.)
Gulf Life Holding Co.
Hartford Fire Insurance Co.
The Hoover Company
Horizon Corporation
Eli Lilly and Co.
Lincoln National Corporation
Monarch Capital Corporation
A. C. Nielsen and Co.
Pabst Brewing Company
The Saint Paul Companies, Inc.
Tampax, Incorporated
United States Fidelity and Guaranty
Co. (Md.)
Hartzmark & Co., Inc.
King Resources
Hayden, Stone Incorporated
Anadite Incorporated
1ST Corp.
King Resources
Kelly & Morey, Inc.
Webb Resources
Kirkpatrick, Pettis, Smith Polian Inc.
Washington Natural Gas Company
Lehman Brothers
American District Telegraph Co.
American Express Company
American Greetings Corp. Class A
7
L i s t o f OTC Market Makers - J u ly 18, 1969
Lehman Brothers (con't)
Anheuser Busch, Inc.
Brush Beryllium Company
De Luxe Check Printers, Inc.
Lilly (Eli) & Company, Inc.
Nielsen (A.C.) and Company Class A
Pabst Brewing Company
Southland Corporation
Standard Register Company
Ling & Company, Inc.
Empire Life Ins. Co. of America (Tex.)
First National Life Ins. Co. (Ala.)
Class A
Great Commonwealth Life Ins. Co.
Republic National Life Ins. Co. (Tex.)
Scientific Control Corp.
Loeb, Rhoades 6c Co.
The Cross Company
First National Bank in Dallas
Grinnell Corporation
The National Life Insurance Company
of Florida
Ransburg Electro-Coating Corp.
O.M. Scott and Sons
Madoff, Bernard Lawrence
Allegheny Beverage Corp.
Energy Resources Corp.
Louisiana 6c Southern Life Ins. Co.
Pennsylvania Engineering Corp.
Roberts Co.
Marks 6c Co. Inc. , Carl
Alexander and Baldwin, Inc.
Delhi Australian Petroleum Ltd.
First Mortgage Investors (Mass.)
Food Fair Properties, Inc.
Hawaiian Airlines, Inc.
Honolulu Gas Company, Ltd.
Horizon Corporation
ISI Corp.
Kaman Corp.
Narragansett Capital Corporation
Ocean Drilling 6c Exploration Co.
Southwest Gas Producing Co. Inc.
Tidewater Marine Service Inc.
Webb Resources, Inc.
Martin J. Joel 6c Co.
Drew National Corp.
May
6c Co. , Inc.
Heath-Tecna
Mayer and Schweitzer, Inc.
Allegheny Beverage Corp.
Clinton Oil Co.
Food Fair Properties, Inc.
Major Realty Corp.
McKee 6c Company, Inc. , C. S.
The Duriron Company, Inc.
WPNB Corp.
McMaster, Hutchinson 6c Co.
The Federal Company
United Services Life Insurance Co.
Will Ross, Inc.
Meyers 6c Company, John J.
American District Telegraph
Grinnell Corp.
Morgan, Kennedy 6c Co. , Inc.
Allegheny Beverage
Drew National
Ormont Drug
Morrissey 6c Co. , F. J.
Continental Bank (Norristown, Pa.)
The Fidelity Corporation of Penna.
Girard Company
The Philadelphia National Bank
Philadelphia Suburban Water Corp.
Provident National Bank
Paine, Webber, Jackson 6c Curtis
Acushnet Co.
American Pipe 6c Construction Co.
Associated Coca-Cola Bottl. Co.
BMA Corp.
Buckbee-Mears Co.
Central Vermont Public Service Corp.
First Mortgage Investors
Hardee's Food System Inc.
Nationwide Corp.
North American Life 6c Casualty Co.
L i s t o f OTC Market Makers - J u ly 18, 1969
Paine, Webber, Jackson & Curtis (con't)
Parkview-Gem Inc.
Public Service Co. of New Hampshire
Parker & Weissenborn, Inc.
American Presidents Life Insurance Co.
Fidelity Union Trust Company
Monmouth County National Bank
National Newark & Essex Bank
Trust Company of New Jersey
Peet & Co., H.O.
Parkview Gem
Richter & Co., Henry J.
Alpine Geophysical Associates, Inc.
American National Ins. Co. (Tex.)
Anheuser-Busch, Inc.
California-Western States Life Ins. Co,,
Clinton Oil Co.
Farrington Manufacturing Co.
The Gas Service Co.
ISI Corporation
Liberty Equities Corporation
Nationwide Corp.
Parkview-Gem, Inc.
The Travelodge Corporation
The Robinson-Humphrey Company, Inc.
Atlanta Gas Light Co.
Bibb Manufacturing Co.
Citizens & Southern National Bank
of Georgia
Coastal States Life Insurance Co.
Colonial Stores
Federal Co.
Scripto, Inc. Class A
Rotan, Mosle-Dallas Union, Inc.
American National Ins. Co. (Texas)
D.P.A., Inc.
First National Bank in Dallas
The Franklin Life Insurance Co. (111.)
Recognition Equipment Incorporated
Republic National Life Ins. Co. (Tex.)
Texas International Airlines Inc.
Tracor, Inc.
Samuel & Co., John E.
Clinton Oil Co.
Oil Shale Corp.
8
Sanders & Company, Inc.
Contran Corporation
Landa Industries, Inc.
Lomas and Nettleton Financial Corp.
Republic National Life Ins. Co. (Tex.
Tracor, Inc.
Saxton & Co. Iiic., G.A.
Addison-Wesley Publishing Co. Class
Allegheny Beverage Corp.
Alpine Geophysical Associates Inc.
American Express
American Greetings Corp. Class A
American National Ins. Co.
Anchor Corp. Class B
Anheuser-Busch Inc.
Arkansas Western Gas
Arvida Corp.
Baird Atomic Inc.
Betz Laboratories Inc.
Browning Arms Co.
Brush Beryllium Co.
Capital International Airways
Carson Pirie Scott 6e Co.
Cascade Natural Gas Corp.
Citizens Utilities Co. Class A
Citizens Utilities Co. Class B
Clinton Oil Co.
Coastal States Life Insurance Co.
Continental Computer Assoc. Inc.
Diamond Crystal Salt Co.
Drew National Corp.
El Paso Electric Co.
Energy Resources Corp.
First Mortgage Investors
Food Fair Properties Inc.
Gleason Works
Gyrodyne Co. of America Inc.
Hardee's Food System Inc.
Hartford Fire Insurance Co.
Heath Tecna Corp.
Herff Jones Co.
Hoover Co.
Horizon Corp.
Indiana Gas Company
Intext Inc.
ISI Corp.
Jamesbury Corp.
Kaiser Steel Corp.
Kentucky Central Life Insurance Co.
Keystone Custodian Funds Inc. Class
9
L i s t o f OTC Market Makers - J u ly 18, 1969
Schapiro & Co. Inc., M.A. (con't)
The Citizens and Southern National
Bank of Georgia
The Cleveland Trust Company
Crocker-Citizens National Bank
The Detroit Bank & Trust Company
The fidelity Corporation of Penna.
Fidelity Union Trust Company (N. J.)
First Bank System, Inc.
First Merchants National Bank,
Asbury Park
The First National
BankofBoston
The First National
BankofChicago
The First National
BankinDallas
The First Pennsylvania Corp.
First Virginia Bankshares Corp.
Franklin National Bank (New York)
Girard Company
Manufacturers and Traders Trust Co.
Manufacturers National Bank
of Detroit
Mellon National Bank & Trust Co.
Monmouth County National Bank
National Bank Detroit
The National City Bank of Cleveland
National Newark & Essex Bank
New Jersey National Bank & Trust Co.
The Philadelphia National Bank
Pittsburgh National Corp.
Provident National Bank
State Street Bank & Trust Company.
Seattle First National Bank
Republic National Bank of Dallas
The Trust Company of New Jersey
United Virginia Bankshares, Inc.
The Valley National Bank of Arizona
Virginia Commonwealth Bankshares
Virginia National Bank
Wachovia Corp.
Wells Fargo Bank, N. A.
Saxton & Co. Inc., G.A. (con't)
King Resources
Landa Industries
MPB Corp.
Maine Sugar Industries Inc.
Major Realty Corp.
Management Assistance Inc.
Midas International Corp.
Class A
Nationwide Corp.
Class A
Nielsen, A.C. & Co. Class A
North American Life & Casualty Co.
North Carolina Natural Gas Corp.
Northwest Natural Gas Co.
Oil Shale Corp.
Pabst Brewing Co.
Perini Corp.
Photon Inc.
Piedmont Aviation
Piedmont Natural Gas Co.
Public Service Co. of New Mexico
Publishers Co.
Ransburg Electro-Coa
Corp.
Recognition Equipment Inc.
Roberts Co.
Scott O.M. & Sons Co. Class A
Scripto Inc.
Class A
Seven-Up Co.
Simon & Schuster Inc.
Southern Union Gas Co.
Southland Corp.
Southwest Gas Corp.
Sovereign Industries Inc.
Standard Register Co.
State Street Bank & Trust Co.
Tiffany & Co.
Tidewater Marine Service Inc.
Titan Group Inc.
Transcontinental Gas Pipe Line Corp.
Travelodge Corp.
United Convalescent Hospitals Inc.
United Life & Accident Ins. Co.
U.S. Banknote Corp.
U.S. Fidelity & Guaranty Co.
University Computing Co.
Siegel & Co. Inc., Sidney A.
Cognitronics Corp.
Midas Intl. Corp.
Class A
Schapiro & Co. Inc. , M.A.
American Security and Trust Company
Bankamerica Corp.
The Bank of California, N.A.
The Bank of New York Company
Baystate Corporation
Singer & Mackie, Inc.
Alpine Geophysical Associates, Inc.
Allegheny Beverage Corp.
American Nuclear Corp.
Arvida Corp.
Baird-Atomic, Inc.
L i s t o f OTC Market Makers - J u ly 18, 1969
Singer & Mackie, Inc. (con't)
Clinton Oil Company
Cognitronics Corp.
Delhi Australian Petroleum, Ltd.
Farrington Manufacturing Company
Food Fair Properties, Inc.
Gyrodyne Company of America, Inc.
Horizon Corp.
Interfinancial Inc.
Jamesbury Corporation
Jet Avion Corp.
King Resources Co.
Lin Broadcasting Corp.
Major Realty Corp.
Management Assistance Inc.
National Semiconductor Corp.
North Central Airlines, Inc.
The Oil Shale Corp.
Pennsylvania Engineering Corp.
Perini Corp.
Photon, Inc.
Recognition Equipment Incorporated
Scripto, Inc.
Simon & Schuster Inc.
Sovereign Industries, Inc.
Texas American Oil Corp.
Titan Group, Inc.
United States Banknote Corp.
Webb Resources
Smith, Burris & Co.
Barber-Green Company
Carson Pirie Scott & Co.
Life Insurance Co. of Kentucky
Stern Brothers & Co.
The Gas Service Company
Sterne, Agee & Leech, Inc.
Liberty National Life Insurance Company
Swift, Henke & Co., Inc.
Barber-Greene Company
Carson Pirie Scott & Co.
Coastal States Life Insurance Co.
Erie Technological Products Inc.
North Central Airlines Inc.
The Old Line Life Insurance Company
of America
Ozite Corporation
Pettibone Corp.
10
Swift, Henke & Co., Inc. (con't)
The Standard Register Company
Unicoa Corp.
United Life & Accident Ins. Co.
Will Ross, Inc.
Tatro Co., Edwin L.
The Bank of New York Co.
Capital Holding Co.
Fidelity Union Life Ins. Co. (Tex.)
The Franklin Life Insurance Co.
(1 1 1 .)
Franklin National Bank (New York)
Integon Corp.
Monumental Corp.
Philadelphia Life Insurance Co.
Republic National Life Ins. Co.
(Texas)
United Services Life Insurance Co.
(Washington, D.C.)
Torpie & Saltzman, Inc.
International Book Corp.
Kaman Corp. Class A
Major Realty Corp.
Oil Shale Corp.
Ormont Drug & Chemical Co.
Troster, Singer & Company
American Furniture Company, Inc.
American District Telegraph Co.
American Maize-Products Co.
American Nuclear Corp.
Atlanta Gas Light Co.
Bio-Dynamics, Inc.
Bolt, Beranek, and Newman, Inc.
Brush Beryllium Co.
Buckbee-Mears Co.
Clinton Oil Co.
Cognitronics Corp.
Computer Usage Co., Inc.
Contran Corp.
Cooper Laboratories, Inc.
The Cross Company
Dalto Electronics Corp.
Diamond Crystal Salt Company
Eastern Shopping Center, Inc.
Energy Resources Corporation
Epsco Incorporated
Erie Technological Products, Inc.
Fabri-Tek Inc.
L i s t o f OTC Market Makers - J u ly 18, 1969
Troster, Singer & Company (con't)
Farrington Manufacturing Company
First Mortgage Investors (Mass.)
Florida Telephone Corp.
Food Fair Properties, Inc.
The Gas Service Company
Gelman Instrument Co.
Georgia International Corp.
Green Mountain Power Corp.
Grinnell Corp.
Hardee's Food System, Inc.
The Hoover Company
Indiana Gas Co., Inc.
Kearney & Trecker Corp.
Kentucky Central Life Insurance Co.
King Resources Company
Landa Industries, Inc.
Maine Sugar Industries, Inc.
Major Realty Corp.
Mallinckrodt Chemical Works
The Mohawk Rubber Company
Monmouth County National Bank
Nationwide Corporation
New England Gas & Electric Assoc.
North Carolina Natural Gas Corp.
The Oil Shale Corporation
Ormont Drug & Chemical Co., Inc.
Pauley Petroleum Inc.
Pennsylvania Engineering Corp.
Perini Corporation
Photon, Incorporated
Piedmont Aviation, Inc.
Public Service Co. of North Carolina,
Inc.
Public Service Co. New Mexico
Publishers Company, Incorporated
Simon & Schuster, Inc.
Southwest Gas Producing Co., Inc.
Sovereign Industries, Inc.
Tampax, Inc.
United States Banknote Corporation
Will Ross, Inc.
Underwood, Neuhaus & Co., Inc.
Contran Corp.
Universal Securities Corporation
The Downtowner Corp.
First National Life Insurance Co.
Great Commonwealth Life Ins. Co.
Gulf Life Holding Co.
11
Universal Securities Corporation (con't)
Kentucky Central Life Ins. Co.
Liberty National Life Ins. Co.
Southern Industries Corp.
C.E. Unterberg, Towbin Co.
United Convalescent Hospitals, Inc.
Walker, Austin & Waggener, Inc.
Republic National Bank of Dallas
Walston & Company, Inc.
Bankamerica Corp.
Weber, Hall, Cobb 6c Caudle, Inc.
Contran Corporation
Empire Life Insurance Co. of America
Landa Industries, Inc.
Lomas 6c Nettle ton Financial Corp.
Scientific Control Corp.
Southland Corporation.
A'ofCOV^-.
BDARD DF GDVERNDRS
□ F THE
FEDERAL RESERVE SYSTEM
W A S H IN G T O N ,
D.
C .
20551
ADDRESS
OFFICIAL
TO
THE
CORRESPONDENCE
BOARD
In section 221.3(w) of Regulation U, effective August 8, 1969,
the Board of Governors has adopted a provision permitting banks to extend
credit without: regard to margin requirements to broker/dealer firms making
a market in stocks that are on the Board's List- of OTC Margin Stocks ("the
list"). Regulation U covers Credit by Banks for the Purpose of Purchasing
or Carrying Margin Stocks. This letter discusses, for your information,
some procedures to be followed by banks in extending credit pursuant to
this provision.
In order to qualify for credit pursuant to section 221.3(w), an
"OTC market-maker" must comply with the Securities and Exchange Commission's
Rule 17a-12, which was made public in its press release of July 3, 1969.
Essentially, the market-maker must (A) have filed with the Commission a.
statement that it is making a market in an OTC margin stock (and file
required periodic reports thereafter), and (B) meet the other requirements
set forth in the Rule and in section 221.3(w), including having certain
minimum net capital, publishing bona fide competitive bid and offer quota
tions on the stock, being ready, willing and able to effect transactions
in the stock, and having a reasonable average rate of inventory turnover.
In order to extend credit pursuant to section 221.3(w), a bank
must determine (A) that the borrower is a qualified OTC market-maker in
the stock being pledged to secure the credit, (B) that the stock being
pledged has not been identified as a security held for investment purposes,
under Internal Revenue Regulations, and (C) that the credit is being used
to conduct the market-making activity of the broker/dealer in the OTC mar
gin stocks in which he is qualified with the Commission (although not
necessarily the same stock that serves as collateral for the loan). A
lending bank should be alert at all times for facts and circumstances
that might be inconsistent with any of these determinations. However,
in general, a bank would use primarily the following indications.
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A list of qualified OTC market-makers and the stocks in which
they are qualified, as of July 18, 1969, will be available through the
Federal Reserve Bank of the district in which the bank's offices are
situated. This list cannot, of course, be fully up-to-date on marketmakers as of the August 8 effective date.
It is also anticipated that
broker/dealers will have occasion subsequently to qualify or de-qualify
in particular OTC margin stocks. For this reason, supplements to the
list will be available through the Federal Reserve Bank. Completely
revised lists will be issued from time to time as appropriate.
When a broker/dealer notifies the Commission that it has
ceased making a market in an OTC margin stock, it will include on the
form of notification a list of banks from which it is currently borrow
ing. Each such bank will be notified by the Reserve Bank, by certified
mail, that pursuant to section 22.1.3(w) (3) of the regulation, credit on
the stock in question should henceforth be treated as subject to sec
tion 221.1.
In determining that the OTC margin stock being pledged as
collateral is,not being held for investment, and that the credit is
being used to conduct the market-making activities of the broker/dealer
in the OTC margin stocks in which he is qualified, the lending bank may
rely on a statement furnished by the broker/dealer on Form F.R. U-2, if
the statement is executed by the broker/dealer and executed and accepted
by an officer of the bank in good faith, as defined in sections 221.3(a)
and 221.3(w), prior to the extension of credit. As stated above, in
accepting the form, the bank should be alert for any facts or circumstances
tending to indicate either that the broker/dealer was not performing a
market-making function in the stock, or that the pledged shares were
being held for investment purposes, or both.
Like the verification described above, a statement on Form
F.R. U-2. need be obtained only once, when a line of credit is opened
on the stock. No subsequent statement need be obtained in respect to
the same broker/dealer and the same OTC margin stock unless the bank
has, in the interim, been notified that the broker/dealer has ceased
making a market in the stock or the bank otherwise has reason to believe
that the broker/dealer is not in fact so acting.
In such an event, if
the brokerMealer requested a new line of exempt credit on the same stock,
the bank should verify with the Reserve Bank that the firm has re-qualified,
and a new Form F.R. U-2 should be obtained.
If a commercial bank has any further questions, it should contact
the Federal Reserve Bank of its district.
Very truly yours,
Kenneth A. Kenyon,
Deputy Secretary.
@FedFRASER