the Federal Reserve Bank's regulation governing the amount of credit that may be advanced by brokers and dealers to customers for the purchase of securities.
Federal Reserve regulation governing credit extensions by securities brokers and dealers, including all members of national securities exchanges. Broker-dealers may not extend credit to their customers unless such loans are secured by margin securities- securities listed and traded on a national securities exchange, mutual funds, over-the-counter stock designated by the SEC as eligible for trading in the national market system. Generally, a broker-dealer may not extend credit on margin securities in excess of the percentage of current market value permitted by the board.
regulation of the Federal Reserve Board that governs the maximum amount of credit that securities brokers and dealers may extend to customers for the initial purchase of regulated securities.
Federal Reserve Board regulation covering the extension of credit to customers by securities brokers, dealers, and members of the national securities exchanges. It establishes initial margin requirements and defines registered (eligible), unregistered (ineligible), and exempt securities.
