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Revised list of marginal OTC stocks now available.


The Federal Reserve Board published on January 25, 1991, a revised List of Marginable OTC Stocks for over-the-counter (OTC) stocks that are subject to its margin regulations and also the List of Foreign Margin Stocks for foreign equity securities that are subject to Regulation T (Credit by Brokers and Dealers). The lists are effective February 11, 1991, and supersede the previous lists that were effective November 13, 1990.

The List of Foreign Margin Stocks indicates those foreign equity securities that are eligible for margin treatment at broker-dealers. This eligibility was made possible by an amendment to Regulation T, effective April 30, 1990. The number of foreign equity securities remains at 276, since no changes are being made to the List of Foreign Margin Stocks at this time.

The changes that have been made to the revised List of Marginable OTC Stocks, which now includes 2,726 OTC stocks, are as follows:

* Thirty-three stocks have been included for the first time, twenty-four under National Market System (NMS) designation.

* Forty-eight stocks previously on the list have been removed for substantially failing to meet the requirements for continued listing.

* Thirty-three stocks have been removed for reasons such as listing on a national securities exchange or involvement in an acquisition.

The List of Marginable OTC Stocks is published by the Board for the information of lenders and the general public. It includes all OTC securities designated by the Board pursuant to its established criteria as well as all OTC stocks designated as NMS securities for which transaction reports are required to be made pursuant to an effective transaction reporting plan. Additional OTC securities may be designated as NMS securities in the interim between the Board's quarterly publications and will be immediately marginable. The next publication of the Board's list is scheduled for April 1991.

Besides NMS-designated securities, the Board will continue to monitor the market activity of other OTC stocks to determine which stocks meet the requirements for inclusion and continued inclusion on the List of Marginable OTC Stocks.
COPYRIGHT 1991 Board of Governors of the Federal Reserve System
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Announcements; over-the-counter
Publication:Federal Reserve Bulletin
Date:Mar 1, 1991
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