Full text of Federal Reserve Bank of New York Circulars : 6721. Effective Date of Margin Requirements for Borrowers

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FEDERAL RESERVE BANK
OF NEW YORK

Circular No. 6721
27, 1971

[■April

"]

EFFECTIVE DATE OF MARGIN REQUIREMENTS FOR BORROWERS

To All Persons Extending Securities Credit
in the Second Federal R eserv e D istrict:

Following is the text of a statement issued today by the Board of Governors of the Fed­
eral Reserve System:
The Board of Governors of the Federal Reserve System announced today that it will
specify in regulations to be issued later this year the effective date of the amendment to
the Securities Exchange Act of 1934 contained in Title III of Public Law 91-508 adopted
by Congress last year.
That title, upon its effective date, will place the burden of compliance with margin
regulations on the borrower as well as the lender in both foreign and domestic securities
transactions. Under the Act, Title III is to go into effect either on May 1 or on any date
after that specified by the Board in regulations — but in no case later than December 1,
1971.
A copy of the Board’ s notice, to be published in the Federal Register, is printed below.
Alfred Hayes,
President.

FEDERAL RESERVE SYSTEM
[12 CFR Parts 207, 220, 221] *
(Regs. G, T, and U)
MARGIN REQUIREMENTS
ON SECURITIES TRANSACTIONS
Effective Date of Requirements
as to Borrowers
Pursuant to the authority contained in




section 401(c), Title IV, of Public Law 9 1 508, 84 Stat. 1125, the amendments made by
Title III of that legislation shall become e f­
fective on a date to be specified in regulations
to be issued hereafter by the Board of Gov­
ernors. That date, as prescribed in section
401(c), shall be not later than December 1,
1971.