Proposal to Modify Regulation Y
March 18, 2003
Circular No. 11505

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a press release, the Federal Reserve Board requested comments on a proposal to modify a condition in the Board’s Regulation Y in order to allow bank holding companies engaged in permissible derivatives activities to transfer title to commodities underlying derivative contracts on an instantaneous, pass-through basis.

Comments are requested by April 21, 2003. The Board’s notice is attached.

Questions on this matter may be directed at this Bank to HaeRan Kim, Counsel and Vice President or Michael Schussler, Counsel and Assistant Vice President, Legal Department.