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FEDERAL R ESERVE BANK OF N EW YORK T C ircu lar N o . 4 9 1 7 *1 L J u ly 2 7 , 1 9 6 0 M A R G IN REQ U IR EM E N TS REDUCED To all Banls, Members of National Securities Exchanges, and Others Interested, in the Second Federal Reserve District: The Board of Governors of the Federal Reserve System issued the following statement today: 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 reducing margin requirements from 90 per cent to 70 per cent, effective July 28, 1960. The reduced requirements apply to both purchases and short sales. No other change was made in the regulations. Enclosed are printed copies of Supplements, effective July 28, 1960, to Regulations T and U, giving effect to the amendments. Additional copies of the enclosed supplements will be furnished upon request. A lfr ed H a ye s , President. J SUPPLEMENT TO REGULATION T Section 220.8— SUPPLEMENT I ssu e d by the B oard op G overnors of th e F ederal R e se r v e S y s t e m Effective July 28, 1960 (а) 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 § 220.3, shall be 30 percent of its cur rent market value. (б) Margin required for short sales in general accounts.— The amount to be included in the adjusted debit balance of a general account, pursuant to § 220.3(d ) (3 ), as margin required for short sales of securities (other than exempted securities) shall be 70 percent of the current market value of each such security. (c) Retention requirement for general accounts.— In the case of a general account which would have an excess of the adjusted debit balance of the account over the maximum loan value of the securities in the account following a withdrawal of cash or securities from the account, the “ retention requirement” of a registered security (other than an exempted security), pursuant to § 220.3(b) (2 ), shall be 50 percent of its current market value. P R IN T E D IN N E W Y O R K SUPPLEMENT TO REGULATION U Section 221.4—SUPPLEMENT I ssu e d by the B oard of G overnors of t h e F e d e r a l R e se r v e S y s t e m Effective July 28, 1960 (a) Maximum loan value of stocks.— For the purpose of § 221.1, the maximum loan value of any stock, whether or not registered on a national securities exchange, shall be 30 percent of its current market value, as determined by any reasonable method. (&) Retention requirement.— For the purpose of § 221.1, in the case of a loan which would exceed the maximum loan value of the collateral following a withdrawal of collateral, the ‘ ‘ retention require ment” of a stock, w7hether or not registered on a national securities exchange, shall be 50 percent of its current market value, as deter mined by any reasonable method. P R IN T E D I N N E W Y O R K