| Release No. 34-10129 April 27, 1973
Amendment to Rule 3a11-1 Under the Securities Exchange Act of 1934
Notice is hereby given that the Securities Exchange Commission has amended Rule 3a11-1 under the Securities Exchange (the "Act") as originally proposed in Release No. 34-9929 (January 29, 1973), effective June 15, 1973. The amendment clarifies the term "equity security" under the Act to specifically include calls and puts ("options"). The Board of Governors of the Federal Reserve System has requested that, for the purpose of clarity and in view of the pending proposals for the exchange trading of such options, the Commission redefine equity security to specify that such options are equity securities within the meaning of Section 3(a)(11) of the Act. The principal effect of this amendment is to make it clear that the Federal Reserve Board has authority under Section 7(d) of the Act to regulate the extension or maintenance of credit by banks with respect to such options. The Securities and Exchange Commission, acting pursuant to the provisions of the Securities Exchange Act of 1934, and particularly Sections 3(a)(11) and 23(a) thereof, amends Rule 3a11-1 to read as follows (new language underscored): Text of Rule Rule 3a11-1. Definition of the Term Equity Security. The term "equity security" is hereby defined to include any stock or similar security, certificate of interest or participation in any profit sharing agreement, pre-organization certificate or subscription, transferable share, voting trust certificate or certificate of deposit for an equity security, limited partnership interest, interest in a joint venture, or certificate of interest in a business trust; or any security convertible, with or without consideration into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any put, call, straddle, or other option or privilege of buying such a security from or selling such a security to another without being bond to do so. By the Commission. Ronald F. Hunt Secretary |
