Full text of Federal Reserve Bank of New York Circulars : 4221. Margin Requirements Increased

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FED ERAL RESER VE BANK
OF NEW YORK
r Circular N o. 4 2 2 1 *1
L April 22, 1955 J

MARGIN REQUIREMENTS INCREASED

To all Banks, Members o f National Securities Exchanges, and
Others Interested, in the Second Federal Reserve D istrict:

The Board of Governors of the Federal Reserve System issued the following state­
ment today:
The Board o f 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 60 per cent to 70 per cent, effective A pril 23, 1955. The increased require­
ments apply to both purchases and short sales. No other change was made in the regulations.

Enclosed are printed copies of the Supplements to Regulations T and U, effective
A pril 23, 1955, giving effect to the amendments.
Additional copies of this circular and o f the enclosed supplements will be furnished
upon request.




A

llan

S

proul,

President.

SUPPLEMENT TO REGULATION T
I ssu ed

by the

B

oard of

G overnors

of t h e

F

ederal

R e ser v e S y s t e m

Effective A pril 23, 1955
Maximum loan value for general accounts.— The maximum loan
value of a registered security (other than an exempted security) in
a general account, subject to section 3 of Regulation T, shall be 30 per
cent of 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 of securities (other than exempted securities) shall be 70
per cent of the current market value of each such security.




P R IN T E D IN N E W Y O R K

SUPPLEMENT TO REGULATION U
I ssu ed

by the

B

oard of

G overnors

of t h e

F

ederal

R

e ser v e

System

Effective A pril 23, 1955
For the purpose o f section 1 o f Regulation U, the maximum loan
value of any stock, whether or not registered on a national securities
exchange, shall be 30 per cent of its current market value, as deter­
mined by any reasonable method.




P R IN T E D I N

NEW YORK