Securities Credit Transactions — 1996-05-06 [96-10608]

In conjunction with a final rule printed elsewhere in today's Federal Register, the Board is considering further amendments to its margin regulations, Regulations G, T, and U. Regulation T covers extensions of credit by and to brokers and dealers; Regulation U covers extensions of credit by banks; and Regulation G covers extensions of credit by all other U.S. lenders. The Board is proposing to: allow a broker-dealer to extend ``good faith'' credit on any non-equity security rather than only those currently permitted by Board rules; allow lending on non-equity securities to occur in a new ``non-equity'' account, absent the restrictions currently imposed in the margin account; remove restrictions on the ability of broker-dealers to calculate required margin for non-equity securities on a ``portfolio'' basis; ease or eliminate the Board's collateral requirements for the borrowing and lending of securities; exempt lending to foreign persons on foreign securities by foreign branches of U.S.