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FEDERAL RESERVE BANK OF NEW YORK r Circular No. 6 9 9 2 1 L August 24, 1972 J MARGIN REGULATIONS G, T, AND U Effective Date of Proposed Amendments on Loans to Provide Capital to Broker-Dealer Firms Postponed to December 1, 1972 To A ll P ersons E xten din g Securities C redit in the Second F ederal R eserve D istric t: F o llo w in g is th e te x t of a sta te m e n t issued A u g u s t 23 by the B o a rd o f G o v e rn o rs o f the F e d e ra l R e serv e S y ste m : The Board of Governors of the Federal Reserve System today postponed until December 1, 1972, the effective date of conditions as set forth in proposed regulatory amendments under which credit may be ob tained without regard to initial margin requirements for the purpose of providing capital to broker-dealer firms. On July 9, 1971, the Board issued in revised form proposed amendments to margin Regulations G, T, and U setting forth these conditions. T h e te x t o f th e rev ised pro p o sals r e f e rr e d to in the above sta te m e n t is c o n tain ed in o u r C irc u la r N o. 6764, w hich w as sen t to you on J u ly 19, 1971. P r in te d below is the te x t o f th e notice o f p o stp o n e m e n t filed f o r p u b licatio n in th e Federal Register. A lfred H a y e s, President. (Regs. G, T, and U) Notice postponing effective date of proposed amendments in regard to Credit to Contribute Capital to Brokers and Dealers 1. Pursuant to the authority contained in the Se curities Exchange Act of 1934 (15 U.S.C. 78g), the Board of Governors, on July 9, 1971 (36 Federal Reg ister 13218), published revisions to its proposals to amend Parts 207, 220, and 221 (Regulations G, T, and U ), to become effective October 1, 1971, but postponed to September 1, 1972 by Notice (37 Federal Register 4968). 2. In light of developments with respect to the capital rules applicable to brokers and dealers, and continuing studies by other regulatory bodies, the Board hereby announces that it will postpone the proposed effective date to December 1, 1972. 3. As a result of the postponement of the proposed effective date, the proposed changes to Regulations G, T, and U would apply to credit extended by banks, brokers or dealers, and persons subject to Regulation G after December 1, 1972 and to renewals after such date of credit extended by banks after (i) April 16, 1971 in the case of credit extended to a customer for the purpose of making a loan or contribution of capital to a broker or dealer subject to Part 220 (Regulation T ), (ii) July 9, 1971 in the case of credit extended directly to a broker or dealer. By order of the Board of Governors, A ugust 22, 1972.
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