The Federal Reserve Board today published a revised list of over-the-counter (OTC) market stocks that meet the margin criteria in Regulation T (OTC List). Also published today is a complete edition of the list of foreign equity securities that meet the margin criteria in Regulation T (Foreign List). The Lists are effective August 10, 1998, and supersede the previous Lists published effective May 11, 1998. The changes that have been made to the revised OTC List, which now contains 4,836 OTC stocks, are as follows: 180 stocks have been included for the first time, 148 under National Market System (NMS) designation; 76 stocks previously on the List have been removed for substantially failing to meet the requirements for continued listing; 122 stocks have been removed for reasons such as listing on a national securities exchange or involvement in an acquisition. 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 use the OTC List until publication of the last OTC List, anticipated for November 1998. An amendment to Regulation T that will make all stocks trading in the Nasdaq Stock Market marginable at brokers and dealers without the need for the Board to publish an OTC List will be effective January 1, 1999, therefore the November 1998 OTC List will expire on January 1, 1999. Also listed below is a complete edition of the Foreign List. Pursuant to amendments recently adopted by the Board that became effective for all broker-dealers on July 1, 1998, the Foreign List is composed of those foreign equity securities that have been found to meet the criteria in section 220.11 of Regulation T. Additional foreign equity securities qualify as foreign margin securities if they are deemed by the Securities and Exchange Commission to have a "ready market" for purposes of SEC Rule 15c3-1. This includes all foreign stocks listed on the Financial Times/Standard & Poor's Actuaries World Indices. Although the Board has included these stocks on its Foreign List since 1996, the recent amendments allow broker-dealers to extend credit on such stocks without regard to the Foreign List. The complete edition of the Foreign List now contains 94 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