Board of Governors of the Federal Reserve System.
The List of Foreign Margin Stocks (List) is composed of certain foreign equity securities that qualify as margin securities under Regulation T. The Foreign List has been published twice a year by the Board since 1999. The Board is removing all 51 stocks from the current List because they have not been recertified as required under procedures approved by the Board in 1990. The Board will publish a new List if eligible securities are identified pursuant to these listing procedures.
April 15, 2004.Start Further Info
FOR FURTHER INFORMATION CONTACT:
Peggy Wolffrum, Financial Analyst, Division of Banking Supervision and Regulation, (202) 452-2837, or Scott Holz, Senior Counsel, Legal Division, (202) 452-2966, Board of Governors of the Federal Reserve System, Washington, DC 20551.End Further Info End Preamble Start Supplemental Information
Stocks that appear on the List are by definition foreign margin stocks under Regulation T, making them also margin securities and therefore eligible for credit at brokers and dealers on the same basis as domestic margin securities. The List was last published on September 4, 2003 (68 FR 8993), and became effective September 15, 2003.
The List is composed of foreign equity securities that qualify as margin securities under Regulation T by meeting the financial requirements of § 220.11(c) and (d). In determining the qualification of particular foreign equity securities, the Board has relied on a list of proposed foreign margin stocks submitted by the New York Stock Exchange (NYSE) based on certification of the securities' eligibility by at least two NYSE members under procedures adopted by the NYSE and approved by the Board in 1990. These procedures include periodic recertification of the stocks on the List by at least two NYSE member firms.
Foreign securities may also qualify as margin securities if they are deemed by the Securities and Exchange Commission (SEC) to have a “ready market” under SEC Rule 15c3-1 (17 CFR 240.15c3-1) or a “no-action” position issued thereunder. This includes all foreign stocks in the FTSE World Index Series.
The New York Stock Exchange has informed the Board that the member firms who usually recertify the stocks on the list have declined to do so, and plan to rely on the “ready market” test instead. The Board is therefore removing the 51 stocks on the current List because it is no longer able to determine that the securities substantially meet the provisions of section 220.11(d) of Regulation T, which is necessary for the securities' continued inclusion on the List.
The Board will publish a List in the future if it receives the required information under the approved procedures to establish the qualification of specific foreign equity securities pursuant to section 220.11(c) of Regulation T, which is necessary for initial inclusion on the List.
The Board finds that the requirements of 5 U.S.C. 553 with respect to notice and public participation are unnecessary. No additional useful information would be gained by public participation, given the objective character of the criteria for continued inclusion on the Foreign List specified in § 220.11(d) of Regulation T.Start List of Subjects
List of Subjects in 12 CFR Part 220
- Margin requirements
- Reporting and recordkeeping requirements
Accordingly, pursuant to the authority of sections 7 and 23 of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78g and 78w), and in accordance with 12 CFR 220.2 and 220.11, the Board is removing the following stocks from the Foreign List:End Amendment Part
Akita Bank, Ltd., ¥50 par common
Aomori Bank, Ltd., ¥50 par common
Asatsu-DK Inc., ¥50 par common
Bank of Nagoya, Ltd., ¥50 par common
Chudenko Corp., ¥50 par common
Chugoku Bank, Ltd. ¥50 par common
Daihatsu Motor Co., Ltd., ¥50 par common
Dainippon Screen MFG. Co., Ltd., ¥50 par common
Denki Kagaku Kogyo, ¥50 par common
Eighteenth Bank, Ltd., ¥50 par common
Futaba Corp., ¥50 par common
Futaba Industrial Co., Ltd. ¥50 par common
Higo Bank, Ltd., ¥50 par common
Hitachi Software Engneering Co., Ltd., ¥50 par common
Hokkoku Bank, Ltd., ¥50 par common
Hokuetsu Paper Mills, Ltd., ¥50 par common
Iyo Bank, Ltd., ¥50 par common
Japan Airport Terminal Co., Ltd., ¥50 par common
Juroku Bank, Ltd., ¥50 par common
Kagoshima Bank, Ltd., ¥50 par common
Kamigumi Co., Ltd., ¥50 par common
Katokichi Co., Ltd., ¥50 par common
Keisei Electric Railway Co., Ltd., ¥50 par common
Keiyo Bank, Ltd., ¥50 par common
Komori Corp., ¥50 par common
Konami Co., Ltd., ¥50 par common
Michinoku Bank, Ltd., ¥50 par common
Musashino Bank, Ltd., ¥500 par common
Namco, Ltd., ¥50 par common
Nichicon Corp., ¥50 par common
Nihon Unisys, Ltd., ¥50 par common
Nishi-Nippon Bank, Ltd., ¥50 par common
Nishi-Nippon Railroad Co., Ltd., ¥50 par common
Nissan Chemical Industries, Ltd., ¥50 par common
Ogaki Kyoritsu Bank, Ltd., ¥50 par common
Q.P. Corp., ¥50 par common
Rinnai Corp., ¥50 par common
Sagami Railway Co., Ltd., ¥50 par common
Sakata Seed Corp., ¥50 par common
Santen Pharmaceutical Co., Ltd., ¥50 par common
Shimadzu Corp., ¥50 par common
Shimamura Co., Ltd., ¥50 par common Start Printed Page 10602
Sumitomo Rubber Industries, Ltd., ¥50 par common
Taiyo Yuden Co., Ltd., ¥50 par common
Takara Standard Co., Ltd., ¥50 par common
Toho Bank, Ltd., ¥50 par common
Toho Gas Co., Ltd., ¥50 par common
Tokyo Ohka Kogyo Co., Ltd., ¥50 par common
Uni-Charm Corp., ¥50 par common
Ushio, Inc., ¥50 par common
Yamaha Motor Co., Ltd., ¥50 par commonStart Signature
By order of the Board of Governors of the Federal Reserve System, acting by its Director of the Division of Banking Supervision and Regulation pursuant to delegated authority (12 CFR 265.7(f)(10)), March 2, 2004.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 04-5103 Filed 3-5-04; 8:45 am]
BILLING CODE 6210-01-P