Credit by Brokers and Dealers — 1994-10-25 [94-26357]

The Board is adopting amendments to Regulation T. The amendments are part of the Board's review of Regulation T and respond to rulemaking by the Securities and Exchange Commission (SEC) concerning settlement of securities transactions and Congressional action concerning government securities. The proposed amendments were published for public comment in the Federal Register on July 1, 1994. The amendments address two general areas: payment periods for securities purchases and transactions in government securities. The amendments concerning payment periods will reduce by two days the amount of time customers have to meet initial margin calls or make full cash payment for securities at the same time the SEC reduces the standard settlement period by two days, require broker-dealers seeking an extension of this time period to obtain the extension from their designated examining authority if the balance due is $1000 or more, and revise regulatory language in the cash account so that the time periods within which extensions must be obtained