Full text of Federal Reserve Bank of New York Circulars : 1441. Interpretation of Regulation T, Ruling no. 15

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FEDERAL RESERVE BANK
OF NEW YORK

Circular No. 1 4 4 1 "I
October 10, 1934 J

INTERPRETATION OF REGULATION T
RULING MO. 1 5
To National Securities Exchanges in the
Second Federal Reserve District:

For your information I quote below the text of a telegram which I
have received today from the Federal Reserve Board:
^

In reply to an inquiry, Board has advised that in order to be considered a "combination of transactions" within the meaning of the
second proviso of section 7(a) of Regulation T, the transactions constituting such combination must be made on the same day except that
any substitution of securities consisting of a sale of securities in the
account and the purchase of other securities may be considered as a
single transaction occurring on the day on which the purchase occurs,
if completed within a period of two successive business days, regardless
of whether the sale occurs before or after the purchase.

Additional copies of this circular will be furnished upon request.




J. H. CASE,

Federal Reserve Agent.