Securities Credit Transactions; Borrowing by Brokers and Dealers

The Board is adopting final amendments to Regulations G, T and U, the Board's securities credit regulations. These amendments are based on proposed amendments issued for comment by the Board in December 1995 (Docket R-0905), April 1996 (Docket R-0923) and November 1996 (Docket R-0944). The final amendments include the extension of Regulation U to cover lenders formerly subject to Regulation G and the elimination of Regulation G. The amendments reduce regulatory distinctions between broker-dealers, banks, and other lenders and implement changes to the Board's securities credit regulations to 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. Conforming changes are also made to Regulation X, ``Borrowers of Securities Credit'' and the Board's Rules Regarding Delegation of Authority.