Securities Credit Transactions; Review of Regulation T, ``Credit by Brokers and Dealers'' — 1996-05-06 [96-10607]

The Board is adopting amendments to Regulation T, the regulation that covers extensions of credit by and to broker and dealers. These amendments reflect consideration of the comments submitted in response to the proposed rule issued by the Board for public comment on June 29, 1995. Major amendments include eliminating restrictions on the ability of broker-dealers to arrange for credit; increasing the type and number of domestic and foreign securities that may be bought on margin and increasing the loan value of some securities that are already marginable; deleting Board rules regarding options transactions in favor of the rules of the options exchanges; and reducing restrictions on transactions involving foreign persons, foreign securities, and foreign currency. In addition, technical changes are being adopted to provide clarification, update references, or restore language inadvertently deleted.