Full text of Federal Reserve Bank of New York Circulars : 7414. Amendments to Margin Regulations G, T, and U

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FEDERAL RESERVE BANK
OF NEW YORK

Circular No. 7 4 1 4 1
June 27, 1974
J

AMENDMENTS TO MARGIN REGULATIONS G, T, AND U
Changes in Listing Criteria for OTC Margin Stocks
T o A ll Persons Extending Securities Credit
in the Second Federal R eserve D istrict:

Following is the text of a statement issued June 24 by the Board of Governors of the
Federal Reserve System:
T he B oard of G overnors o f the Federal R eserve System today amended, effective July 25, the criteria
that over-the-counter ( O T C ) stocks must meet and continue to meet to be included on its L ist o f O T C
M argin Stocks. T he amendments adopted today are substantially the same as those which were published
for com m ent on A p ril 16, 1974.
T he criteria em ployed in selecting O T C stocks for inclusion on the L ist o f O T C M argin Stocks were
announced on July 8, 1969. M ore than 600 stocks are now on the list and subject to the B oa rd ’s m argin
requirements.
T he B oa rd ’s action, which makes the criteria somewhat less restrictive, reflects the many changes
that have occu rred in the O T C market since 1969, particularly the impact o f the National A ssociation of
Securities Dealers A utom ated Q uotation System ( N A S D A Q ) .

Enclosed are copies of the amendments and supplements to margin Regulations G, T, and
U, effective July 25, 1974, which reflect the Board of Governors’ action. Additional copies of
the enclosures will be furnished upon request.




A

lfred

H

ayes

,

President.




Board of Governors of the Federal Reserve System

SECURITIES CREDIT TRANSACTIONS

A M E N D M E N T S TO R E G U L A T IO N S G, T, A N D U
E ffective July 25, 1974, subparagraph ( 4 )
o f section 2 0 7 .2 (f)
2 2 0 .2 (e )

[R egulation G ] , o f section

[R egulation

T ],

and

of

section

2 2 1 .3 (d ) [R egu lation U ] , is amended to read
as fo llo w s :
(4 )

T he.

foregoin g

notwithstanding,

B oard may om it o r rem ove any stock that is not
traded on a national securities exchange from
or add any such stock to such list o f O T C m ar­
gin stocks, if in the judgm ent of the B oard,
such action is necessary or appropriate in the
public interest.

PR IN T E D IN N E W YORK

the