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F ederal R eserve Bank OF DALLAS W ILLIAM H. WALLACE DALLAS, TEXAS 7 5 2 2 2 FIRST VIC E PR ES ID EN T AND CH IE F O PER ATING O FFICER August 23, 1990 Circular 90-59 TO: The Chief Executive Officer of each member bank and others concerned in the Eleventh Federal Reserve District SUBJECT Regulation T (Credit by Brokers and Dealers) DETAILS The Federal Reserve Board has announced adoption of an interpreta tion on the applicability of Regulation T to unregistered securities sold and traded pursuant to the Securities and Exchange Commission’s new Rule 144A. The interpretation clarifies that broker-dealers may purchase debt securities from an issuer for resale pursuant to Rule 144A and may make markets in such securities under the investment banking service exception to the arranging section in Regulation T. The interpretation eliminates any uncertainty broker-dealers might have that their purchase of securities in compliance with Rule 144A could result in a violation of section 7(c) of the Securities Exchange Act of 1934 and Regulation T adopted under the act. MORE INFORMATION For a copy of the Board’s notice, please contact Dean Pankonien at (214) 651-6228. For additional copies of this circular, please contact the Public Affairs Department at (214) 651-6289. Sincerely yours, For additional copies of any circular, please contact the Public Affairs Department at (214) 651-6289. Bankers and others are encouraged to use the following toll-free number in contacting the Federal Reserve Bank of Dallas: (800) 333-4460. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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