F e d e r a l R e s e r v e B a n k OF DALLAS WILLIAM H. WALLACE FIRST VICE PRESIDENT November 16, 1990 d a l l a s , t e x a s 7 5 2 2 2 AND CHIEF OPERATING OFFICER Circular 90-84 TO: The Chief Executive Officer of each member bank and others concerned in the Eleventh Federal Reserve District SUBJECT Over-the-Counter (OTC) Margin Stocks DETAILS The Board of Governors of the Federal Reserve System has revised the list of over-the-counter (OTC) stocks that are subject to its margin regula­ tions, effective November 13, 1990. The Board publishes a complete list four times a year, and the Federal Register announces additions to and deletions from the list. The complete list of OTC stocks as of November 13, 1990, is avail­ able from the Public Affairs Department of this Bank upon request. Included with the list is a revised listing of foreign margin stocks. The foreign margin stocks listed are foreign equity securities now eligible for margin treatment at broker-dealers. ATTACHMENT Attached is a copy of the Federal Register announcement of revisions to the list of OTC stocks as shown on pages 46040-44, Vol. 55, No. 212, dated November 1, 1990. Also included are additions to the listing of foreign margin stocks. MORE INFORMATION For more information regarding marginable OTC stock requirements, please contact Dean A. Pankonien at (214) 651-6228. For copies of the com­ plete list or additional copies of this circular, please contact the Public Affairs Department at (214) 651-6289. Sincerely yours, For additional copies of any circular, please contact the Public Affairs Department at (214) 651-6289. Bankers and others are encouraged to use the following toll-free number in contacting the Federal Reserve Bank of Dallas: (800) 333-4460. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library ([email protected]) 46040 Federal Register / Vol. 55, No. 212 / Thursday, November 1, 1990 / Rules and Regulations of the Federal Reserve System to be margin treatment at broker-dealers subject to the margin requirements pursuant to a recent amendment to under certain Federal Reserve Regulation T (12 CFR Part 220). (See regulations. The List of Foreign Margin Federal Register of March 27,1990, at Stocks (Foreign List) represents all page 11158 for Board action.) These foreign equity securities that have met additional foreign equity securities have the Board's eligibility criteria under met the Board's requirements pursuant to Regulation T. The OTC List and the Regulation T and are now eligible for Foreign List are published four times a margin at broker-dealers on the same year by the Board. This document sets basis as domestic margin securities. A forth additions to or deletions from the copy of the complete Foreign List OTC List and additions to the Foreign incorporating these additions is List previously published and effective available from the Reserve Banks. on August 13,1990. Public Comment and Deferred Effective EFFECTIVE d a te : November 13,1990. Date FOR FURTHER INFORMATION CONTACT: Peggy Wolffrum, Securities Regulation The requirements of 5 U.S.C. 553 with Analyst, Division of Banking respect to notice and public Supervision and Regulation, (202) 452- participation were not followed in 2781, Board of Governors of the Federal connection with the issuance of this Reserve System, Washington, DC 20551. amendment due to the objective For the hearing impaired only, character of the criteria for inclusion Earnestine Hill or Dorothea Thompson, and continued inclusion on the Lists Telecommunications Device for the Deaf specified in 12 CFR 207.6 (a) and (b), (TDD) (202) 452-3544. 220.17 (a), (b), (c) and (d), and 221.7 (a) SUPPLEMENTARY INFORMATION: Two and (b). No additional useful categories of stock information are information would be gained by public listed below. The first group represents participation. The full requirements of 5 additions to or deletions from the OTC U.S.C. 553 with respect to deferred List. This supersedes the last OTC List effective date have not been followed in which was effective August 13,1990. connection with the issuance of this Additions and deletions to the OTC List amendment because the Board finds were published on August 2,1990 (55 FR that it is in the public interest to 31367). A copy of the complete OTC List facilitate investment and credit incorporating these additions and decisions based in whole or in part upon deletions is available from the Federal the composition of these Lists as soon as Reserve Banks. possible. The Board has responded to a The OTC List includes those stocks request by the public and allowed a that meet the criteria in Regulations G, T two-week delay before the Lists are and U (12 CFR parts 207, 220 and 221, effective. respectively). This determination also List of Subjects affects the applicability of Regulation X (12 CFR part 224). These stocks have the 12 CFR Part 207 degree of national investor interest, the Banks, Banking, Credit, Federal depth and breadth of market, and the availability of information respecting Reserve System, Margin, Margin the stock and its issuer to warrant requirements, Investments, National regulation in the same fashion as Market System (NMS Security), exchange-traded securities. The OTC Reporting and recordkeeping List also includes any OTC stock requirements, Securities. FEDERAL RESERVE SYSTEM designated under a Securities and 12 CFR Part 220 Exchange Commission (SEC) rule as 12 CFR Parts 207,220, 221 and 224 qualified for trading in the national Banks, Banking, Brokers, Credit, market system (NMS security). Federal Reserve System, Margin, Margin Regulations G, T, U and X; Securities Additional OTC stocks may be requirements, National Market System Credit Transactions; List of Marginable designated as NMS securities in the (NMS Security), Reporting and OTC Stocks; List of Foreign Margin interim between the Board's quarterly recordkeeping requirements, Securities. Stocks publications. They will become 12 CFR Part 221 AGENCY: Board of Governors of the automatically marginable at broker- Federal Reserve System. dealers upon the effective date of their Banks, Banking, Credit, Federal Reserve System, Margin, Margin a c t i o n : Final rule; determination of NMS designation. The names of these requirements, National Market System applicability of regulations. stocks are available at the Board and the SEC and will be incorporated into (NMS Security), Reporting and SUMMARY: The List of Marginable OTC the Board's next quarterly publication of recordkeeping requirements, Securities. Stocks (OTC List) is comprised of stocks the OTC List. 12 CFR Part 224 traded over-the-counter (OTC) in the The second group of securities, United States that have been represents additions to the Board's Banks, Banking, Borrowers, Credit determined by the Board of Governors Foreign List that are now eligible for Federal Reserve System, Margin, Margin Federal Register / Vol. 55, No. 212 / Thursday, November 1, 1990 / Rules and Regulations 46041 requirements, Reporting and Fleet Aerospace, Inc. $.01 par common recordkeeping requirements, Securities. $.01 par common Bogert Oil Company Accordingly, pursuant to the authority Fulton Federal Savings Bank $.10 par common $1.00 par common of sections 7 and 23 of the Securities Cadence Design Systems, Inc. General Building Products Corporation $.01 par common Exchange Act of 1934, as amended (15 $.05 par common Carolina Bancorp, Inc. U.S.C. 78g and 78w), and in accordance HEI Corporation $1.00 par common with 12 CFR 207.2(k) and 207.6(c) $.10 par common Church & Swight Co., Inc. (Regulation G), 12 CFR 220.2(u) and Heritage Financial Corporation $1.00 par common 220.17(e) (Regulation T), and 12 CFR $.90 par cumulative convertible preferred CII Financial, Inc. 221.2(j) and 221.7(c) (Regulation U), Independence Federal Savings Bank No par common there is set forth below a listing of $.01 par common Diagnostek, Inc. deletions from and additions to the OTC Institute of Clinical Pharmacology, PLC $.01 par common American Depositary Receipts for non­ Dycom Industries, Inc. List; and the additions to the Foreign restricted B shares (nominal value FIN List. $.33 Vs par common 20) Epsilon Data Management, Inc. Deletions From the List of Marginable OTC Jesup Group Inc., The $.01 par common Stocks $.01 par common Fidelity Federal Savings Bank (Indiana) Microwave Laboratories, Inc. $.01 par common Stocks Removed For Failing Continued $.01 par common Listing Requirements Finnigan Corporation Novell, Inc. $.01 par common Action Auto Stores, Inc. 7Vi% convertible subordinated debentures First Home Federal Savings and Loan No par common Osicom Technologies, Inc. Association (Florida) Airship Industries Limited $.01 par common $100 par common American Depositary Receipts representing Pacesetter Homes, Inc. Florida Public Utilities Company 80 ordinary shares $.01 par common $1.50 par common A1 Copeland Enterprises, Inc. Questech, Inc. Greenery Rehabilitation Group, Inc. Series 1,17.5% exchangeable preferred $.05 par common $.01 par common Altus Bank, a Federal Savings Bank Retailing Corporation of America Henley International, Inc. (Alabama) $1.00 par common $.001 par common $.01 par common S.P.I.-Suspension and Parts Industries Integon Corporation American Film Technologies, Inc. Limited $1.00 par common Warrants (expire 06-30-93) Ordinary shares, IS 250 par value Intellicall, Inc. Anthony, Michael Jewelers, Inc. SFE Technologies $.01 par common $.001 par common $.1.00 par common International Lease Finance Corp. ASTEC Industries, Inc. Sructofab. Inc. $.01 par common Warrants (expire 12-29-91) $.02 par common Warrants (expire 1994) BANC One Corporation SUNF, Inc. JMB Realty Trust Series B, no par convertible preferred $.50 par common No par shares of beneficial Beauty Labs, Inc. Symbion, Inc.