Final Rule on Regulation Y
July 1, 2003
Circular No. 11525

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

In a press release, the Federal Reserve Board announced its approval of a final rule that modifies Regulation Y to allow bank holding companies engaged in permissible derivatives activities to transfer title to commodities underlying derivative contracts on an instantaneous, pass-through basis.

The rule becomes effective August 4, 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.