The Federal Reserve Board today published a revised list of over-the-counter (OTC) market stocks that are subject to its margin regulations (OTC List). Also published today is a revised list of foreign equity securities that meet the margin criteria in Regulation T (Foreign List). The Lists are effective February 9, 1998, and supersede the previous Lists published effective November 10, 1997. The changes that have been made to the revised OTC List, which now contains 4,860 OTC stocks, are as follows: 188 stocks have been included for the first time, 153 under National Market System (NMS) designation; 61 stocks previously on the List have been removed for substantially failing to meet the requirements for continued listing; 120 stocks have been removed for reasons such as listing on a national securities exchange or involvement in an acquisition. Pursuant to amendments recently adopted by The Board, lenders subject to Regulation G will become subject to a revised Regulation U on April 1, 1998 and Regulation G will be removed from the Code of Federal Regulations. Also on April 1, 1998, Regulation U will be revised so that lenders other than brokers and dealers will no longer be required to apply the Board's margin requirements to all OTC stocks on the OTC List. Instead, lenders subject to the revised Regulation U will be required to apply the Board's margin requirements only to those OTC stocks that qualify as NMS securities. The names of these securities are available at the National Association of Securities Dealers, Inc., and at the Securities and Exchange Commission. Lenders subject to Regulation T and borrowers subject to Regulation X who are required under Section 224.3(a) to conform credit they obtain to Regulation T must continue to use the OTC List until publication of the next OTC List, anticipated for May 1998. An amendment to Regulation T that will make all stocks trading in the Nasdaq Stock Market marginable at brokers and dealers will be effective January 1, 1999. The Board will cease publication of the OTC List at that time. The Foreign List is composed of foreign equity securities that are eligible for margin treatment at broker-dealers. Effective July 1, 1996, foreign stocks that have a "ready market" for purposes of the Securities Exchange Commission's (SEC) net capital rule may be included on the Foreign List. The SEC effectively treats all stocks included on the Financial Times/Standard & Poor's Actuaries World Indices (FT/S&P-AW Indices) as having a "ready market" for capital purposes. The Board is adding 24 foreign stocks and deleting 38, based on changes to the FT/S&P-AW Indices. The revised Foreign List now contains 1,942 securities displayed in country order. It is unlawful for any person to cause any representation to be made that inclusion of a stock on the OTC List or the Foreign List indicates that the Board or the Securities and Exchange Commission has in any way passed upon the merits of any such stock or transaction therein. Any references to the Board in connection with these Lists or any stocks thereon in any advertisement or similar communications is unlawful.

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1998 Banking and consumer regulatory policy