Trace Reed

Certain borrowers are exempt from Regulation-T, which means those borrowres can obtain a leverage higher that 50% ( 2 to 1 ).

For the purposes of Reg-T, an exempted borrower means a member of a national securities exchange or a registered broker or dealer, a substantial portion of whose business consists of transactions with persons other than brokers or dealers.

See 12 CFR § 220.2 for the details.

Thursday, 10. April 2008 at 1:21 am Tagged as: FAQ.