Full text of Federal Reserve Bank of New York Circulars : 6849. Margin Regulations G, T, and U

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FEDERAL RESERVE BANK
OF NEW YORK

B

C ircu la r N o . 6 8 4 9 ]
December 1, 1971

MARGIN REGULATIONS G, T, AND U
Effective Date of Proposed Amendments on Loans to Provide
Capital to Broker-Dealer Firm s Postponed to March 1, 1972
To All Persons Extending Securities Credit
in the Second Federal R eserve District:

Following is the text of a statement issued November 29 by the Board of Governors of
the Federal Reserve System:
To allow additional time for consideration of the proposals, the Board of Governors
of the Federal Reserve System has postponed until March 1, 1972, the effective date of
proposed regulatory amendments setting forth the conditions under which credit may be
obtained without regard to initial margin requirements for the purpose of providing
capital to broker-dealer firm s.
On July 9, the Board issued in revised form proposed amendments to margin Reg­
ulations G, T, and U setting forth these provisions.
The text of the revised proposals referred to in the above statement is contained in our
Circular No. 6764, which was sent to you on July 19, 1971.
Printed below is the text of the notice of postponement filed for publication in the Fed­
eral Register.
Alfred Hayes,
President.

( R e g s . G, T , and U)
N o tic e postponing e f fe c t iv e date of
proposed amendments in regard to C r e d it
to Contribute C a p i t a l to B ro k e rs and D e a l e r s

1. Pursuant to the authority contained in
the Securities Exchange Act of 1934 (15 U.S.C.
78g), the Board of Governors, on July 9,1971
(36 Federal Register 13218), published re­
visions to its proposals to amend Parts 207,
220, and 221 (Regulations G, T, and U), to
become effective October 1, 1971, but post­
poned to December 1, 1971 by Notice (36
Federal Register 19515).
2. In order to permit further considera­
tion of the proposals in the light of proposed
rules on the same subject matter by other
regulatory bodies, the Board hereby an­
nounces that it will postpone the proposed
effective date to March 1, 1972.



3.
In view of the postponement of the
proposed effective date to March 1, 1972,
the proposed changes to Regulations G, T,
and U will apply to credit extended by banks,
broker-dealers, and persons subject to Reg­
ulation G after March 1, 1972, and to re­
newals after such date of credit extended by
banks after April 16, 1971, except in the
case of credit extended by banks directly to
broker-dealers where the restrictions would
apply to such credit extended after March 1,
1972, and to renewals after that date of such
credit extended after July 9, 1971.
By order of the Board of Governors,
November 26, 1971.