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FED ERAL R E SE R V E BANK O F NEW YORK r Circular No. 4 1 7 9 T L January 5, 1955 J M A R G IN R E Q U IREM EN TS IN CREASED To all Banks, Members o f National Securities Exchanges, and Others Interested, in the Second Federal Reserve D istrict: The Board of Governors o f the Federal Reserve System issued the following state ment: FO R R E LE A SE AT 6 :30 PM EST, Tuesday, January 4, 1955. The Board of Governors of the Federal Reserve System today amended Regulations T and U. relating respectively to margin requirements of brokers and banks, by increasing margin requirements from 50 per cent to 60 per cent, effective immediately. The increased requirements apply to both purchases and short sales. No other change was made in the regulations. Enclosed are printed copies o f the Supplements to Regulations T and U, effective January 4, 1955, giving effect to the amendments. Additional copies of this circular and of the enclosed supplements will be furnished upon request. A l l a n S pr o u l , President. SUPPLEMENT TO REGULATION T I ssu ed by th e B oard op G overnors op t h e F e d e ra l R e serve S y s t e m Effective January 4, 1955 Maximum loan value for general accounts.— The maximum loan value o f a registered security (other than an exempted security) in a general account, subject to section 3 of Regulation T, shall be 40 per cent o f its current market value. Margin required for short sales in general accounts.— The amount to be included in the adjusted debit balance of a general account, pursuant to section 3 (d ) (3 ) o f Regulation T, as margin required for short sales o f securities (other than exempted securities) shall be 60 per cent of the current market value o f each such security. PR IN T E D I N N E W YORK SUPPLEMENT TO REGULATION U I ssu e d by th e B oard of G overnors op th e F e d e r a l R e se r v e S y s t e m Effective January 4, 1955 For the purpose o f section 1 of Regulation U, the maximum loan value of any stock, whether or not registered on a national securities exchange, shall be 40 per cent o f its current market value, as deter mined by any reasonable method. pH I s T ED I N N E W Y O B K
@FedFRASER