Margin Requirements Are Boosted by Fed
The Federal Reserve Board yesterday raised from the 70 per cent to 80 per cent the down payment required to buy stocks listed on national securities exchanges. It also increased the required payment on convertible bonds from 50 to 60 per cent.</br></br>Taking note of recent in-' creases in total stock (loan balances, the Fed said that it took action ÛÏto prevent excessive use of credit to finance transactions in securities.Û It did not say specifically that the margin increase was an effort to calm stock market speculation.</br></br>Nevertheless, Robert W.l Haack, president of the New York Stock Exchange, said the boost in requirements ÛÏappears to be a cautionary action by the Federal Reserve Board to prevent excessive speculation on the various securities markets.</br></br>ÛÏIn the current atmosphere,Û Haack added, ÛÏthe New York Stock Exchange views the action as constructive.Û</br></br>By the ÛÏcurrent atmosphere,Û Haack presumably meant the sustained high volume of trading on the Big Board that has forced it, other securities exchanges and over-the-counter brokers to call four market holidays in the next month to clear up the backlog of paperwork.