For immediate release

The Federal Reserve Board on Wednesday announced that it is removing all fifty-one stocks from its current List of Foreign Margin Stocks because they have not been recertified as required under procedures approved by the Board in 1990. The list is one of two methods for foreign securities to qualify as margin securities under Regulation T (Credit by Brokers and Dealers).

The list, which has been published twice each year by the Board since 1999, is composed of certain foreign equity securities that qualify as margin securities under Regulation T. Stocks on the list qualify as margin securities by meeting certain financial requirements specified in Regulation T.

In determining the qualification of particular foreign equity securities, the Board has relied on a list of proposed margin stocks submitted by the New York Stock Exchange (NYSE). The eligibility of the stocks must be certified by at least two NYSE members under procedures adopted by the NYSE and approved by the Board in 1990.

Foreign securities may also qualify as margin securities if they are deemed by the Securities and Exchange Commission (SEC) to have a "ready market" under its net capital rule. This includes all foreign stocks in the FTSE World Index Series.

The stocks being removed from the list are named in the attached Federal Register notice. The Board will publish a new list of foreign margin stocks if eligible securities are identified pursuant to the existing listing procedures.

Attachment (11 KB PDF)

2004 Banking and consumer regulatory policy