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FEDERAL RESERVE BANK OF NEW YORK rC irc u la r N o. 4 3 3 2 1 L A pril 26, 1956 J AMENDMENT NO. 12 TO REGULATION T OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM To Brokers and Dealers in Securities, Members of National Securities Exchanges, and Other Interested Persons, in the Second Federal Reserve District: The Board of Governors of the Federal Reserve System has adopted Amendment No. 12 to Regulation T. Following is the text of the statem ent issued by the B oard of Governors relat ing to the amendment, and released fo r publication A pril 26, 1956: The B oard of Governors of the F ederal Reserve System has adopted a technical am endm ent to its R egulation T, the m argin regulation applicable to brokers and dealers. The amendm ent, which becomes effective May 1, 1956, is attached. The am endm ent changes the maximum period allowed for a broker to obtain m argin in a m argin account from three full business days to four. I t is designed to sim plify mechanical operating prob lems of brokers in the light of cu rren t mail schedules an d brokers’ m achine bookkeeping methods. However, the regulation continues to require th a t the broker in all cases obtain the necessary deposit of m argin “ as prom ptly as possible” ; and the new four-day period, like the previous three-day period, merely states an outside lim it which is to be used by the broker only to the extent th a t it is not possible fo r him to obtain the m argin in less time. A printed copy of Amendment No. 12 to R egulation T is enclosed; additional copies may be obtained upon request. A llan S proul, President. AM ENDM ENT NO. 12 TO R EGULATION T I ssu ed by t h e B oard o f G overnors o f t h e F ed er a l R eser v e S y stem Effective M ay 1, 1956, R egulation T is hereby amended (1) by striking out the words “ three full business d ay s” in subsection (b) of section 3 an d substituting therefor the words “ fo u r fu ll business d ay s” ; (2) by striking out the words “ three-day period” wherever they ap p ear in subsections (e) and (f) of section 3 an d substituting th erefo r the words “ four-day p erio d ” ; and (3) by striking out the words “ or ‘three-day rid in g ’ ” in the footnote to subsection (e) of section 3. P R IN T E D I N N EW YORK
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