Regulation T
E20609
Regulation T is a Federal Reserve Board rule that governs the extension of credit by securities brokers and dealers, including margin requirements for purchasing securities.
Statements (50)
| Predicate | Object |
|---|---|
| instanceOf |
Federal Reserve Board regulation
ⓘ
United States federal regulation ⓘ |
| alsoKnownAs | Reg T ⓘ |
| appliesTo |
broker-dealers
ⓘ
cash accounts ⓘ debt securities under certain conditions ⓘ listed equity securities ⓘ margin accounts ⓘ options on securities ⓘ options on securities indexes ⓘ over-the-counter margin securities ⓘ securities brokers ⓘ securities dealers ⓘ |
| codifiedIn | Title 12 of the Code of Federal Regulations ⓘ |
| defines |
cash account
ⓘ
margin account ⓘ nonpurpose credit ⓘ purpose credit ⓘ |
| enforcedBy |
Federal Reserve Board of Governors
ⓘ
surface form:
Federal Reserve Board
self-regulatory organizations for broker-dealers ⓘ |
| excludes | credit extended by banks governed by Regulation U ⓘ |
| governs |
extension of credit by securities brokers
ⓘ
extension of credit by securities dealers ⓘ margin requirements for purchasing securities ⓘ |
| imposes | margin requirements on securities transactions effected by broker-dealers ⓘ |
| influences |
brokerage firm margin policies
ⓘ
investor leverage in securities accounts ⓘ |
| jurisdiction |
United States of America
ⓘ
surface form:
United States
|
| legalBasis |
U.S. Securities Exchange Act of 1934
ⓘ
surface form:
Securities Exchange Act of 1934
|
| objective |
limit excessive use of credit for securities speculation
ⓘ
promote financial stability in securities markets ⓘ |
| primaryFocus |
margin requirements
ⓘ
securities credit ⓘ |
| regulates |
credit for buying options
ⓘ
credit for purchasing mutual fund shares on margin ⓘ credit for purchasing or carrying margin securities ⓘ credit for short sales of securities ⓘ credit for writing options ⓘ |
| regulator |
Federal Reserve Board of Governors
ⓘ
surface form:
Board of Governors of the Federal Reserve System
|
| relatedTo |
Regulation G
ⓘ
Regulation U ⓘ Regulation X ⓘ |
| requires |
maintenance of specified equity levels in margin accounts
ⓘ
proper documentation of purpose of credit ⓘ segregation of fully paid and excess margin securities ⓘ |
| scope | credit extended by broker-dealers in the United States ⓘ |
| sets |
credit extension conditions for securities transactions
ⓘ
initial margin requirements for securities purchases ⓘ maximum loan value of securities in margin accounts ⓘ payment rules for securities transactions ⓘ |