[Federal Register Volume 69, Number 45 (Monday, March 8, 2004)]
[Rules and Regulations]
[Pages 10601-10602]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5103]


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FEDERAL RESERVE SYSTEM

12 CFR Part 220

[Regulation T]


Credit by Brokers and Dealers; List of Foreign Margin Stocks

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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SUMMARY: 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.

EFFECTIVE DATE: April 15, 2004.

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.

SUPPLEMENTARY 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 Sec.  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.

Public Comment

    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 Sec.  220.11(d) of Regulation T.

List of Subjects in 12 CFR Part 220

    Brokers, Credit, Margin, Margin requirements, Investments, 
Reporting and recordkeeping requirements, Securities.

0
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:

Akita Bank, Ltd., 1/87/21/53/850 par common
Aomori Bank, Ltd., 1/87/21/53/850 par common
Asatsu-DK Inc., 1/87/21/53/850 par common
Bank of Nagoya, Ltd., 1/87/21/53/850 par common
Chudenko Corp., 1/87/21/53/850 par common
Chugoku Bank, Ltd. 1/87/21/53/850 par common
Daihatsu Motor Co., Ltd., 1/87/21/53/850 par common
Dainippon Screen MFG. Co., Ltd., 1/87/21/53/850 par common
Denki Kagaku Kogyo, 1/87/21/53/850 par common
Eighteenth Bank, Ltd., 1/87/21/53/850 par common
Futaba Corp., 1/87/21/53/850 par common
Futaba Industrial Co., Ltd. 1/87/21/53/850 par common
Higo Bank, Ltd., 1/87/21/53/850 par common
Hitachi Software Engneering Co., Ltd., 1/87/21/53/850 par common
Hokkoku Bank, Ltd., 1/87/21/53/850 par common
Hokuetsu Paper Mills, Ltd., 1/87/21/53/850 par common
Iyo Bank, Ltd., 1/87/21/53/850 par common
Japan Airport Terminal Co., Ltd., 1/87/21/53/850 par common
Juroku Bank, Ltd., 1/87/21/53/850 par common
Kagoshima Bank, Ltd., 1/87/21/53/850 par common
Kamigumi Co., Ltd., 1/87/21/53/850 par common
Katokichi Co., Ltd., 1/87/21/53/850 par common
Keisei Electric Railway Co., Ltd., 1/87/21/53/850 par common
Keiyo Bank, Ltd., 1/87/21/53/850 par common
Komori Corp., 1/87/21/53/850 par common
Konami Co., Ltd., 1/87/21/53/850 par common
Michinoku Bank, Ltd., 1/87/21/53/850 par common
Musashino Bank, Ltd., 1/87/21/53/8500 par common
Namco, Ltd., 1/87/21/53/850 par common
Nichicon Corp., 1/87/21/53/850 par common
Nihon Unisys, Ltd., 1/87/21/53/850 par common
Nishi-Nippon Bank, Ltd., 1/87/21/53/850 par common
Nishi-Nippon Railroad Co., Ltd., 1/87/21/53/850 par common
Nissan Chemical Industries, Ltd., 1/87/21/53/850 par common
Ogaki Kyoritsu Bank, Ltd., 1/87/21/53/850 par common
Q.P. Corp., 1/87/21/53/850 par common
Rinnai Corp., 1/87/21/53/850 par common
Sagami Railway Co., Ltd., 1/87/21/53/850 par common
Sakata Seed Corp., 1/87/21/53/850 par common
Santen Pharmaceutical Co., Ltd., 1/87/21/53/850 par common
Shimadzu Corp., 1/87/21/53/850 par common
Shimamura Co., Ltd., 1/87/21/53/850 par common

[[Page 10602]]

Sumitomo Rubber Industries, Ltd., 1/87/21/53/850 par common
Taiyo Yuden Co., Ltd., 1/87/21/53/850 par common
Takara Standard Co., Ltd., 1/87/21/53/850 par common
Toho Bank, Ltd., 1/87/21/53/850 par common
Toho Gas Co., Ltd., 1/87/21/53/850 par common
Tokyo Ohka Kogyo Co., Ltd., 1/87/21/53/850 par common
Uni-Charm Corp., 1/87/21/53/850 par common
Ushio, Inc., 1/87/21/53/850 par common
Yamaha Motor Co., Ltd., 1/87/21/53/850 par common

    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