For immediate release

The Federal Reserve Board today announced adoption of final amendments to reduce regulatory distinctions between broker-dealers, banks, and other lenders and implement changes to the Board's securities credit regulations. The amendments to Regulations G, T, U and X reflect changes to the Board's statutory authority under the Securities Exchange Act of 1934, as amended by the National Securities Markets Improvement Act of 1996, as well as amendments designed to simplify the regulations and reduce burden. They do not change the margin requirements for stocks and convertible bonds. The amendments provide for merging Regulation G into Regulation U, thereby eliminating Regulation G. The Board also will discontinue publication of its quarterly list of over-the-counter (OTC) market stocks that are subject to its margin regulations for broker-dealers effective January 1, 1999, and for other lenders effective April 1, 1998. The final amendments are effective April 1, 1998. Compliance with Regulation T is optional until July 1, 1998. The Board also announced an advance notice of proposed rulemaking and requested public comment to amend Regulations T, U, and X. Comment is requested by April 1, 1998. Comment is sought on all aspects of these regulations, including issues stemming from the consolidation of Regulation G into Regulation U. The Board's notices are attached.

Final rule:         Summary only | Full text (220 KB PDF)

Proposed rule:  Summary only | Full text (31 KB PDF)

1997 Banking and consumer regulatory policy