regulation t: meaning, definition, pronunciation and examples
C2Formal; Technical/Financial
Quick answer
What does “regulation t” mean?
A specific rule from the US Federal Reserve Board governing the amount of credit that brokerage firms and dealers may extend to customers for the purchase of securities.
Audio
Pronunciation
Definition
Meaning and Definition
A specific rule from the US Federal Reserve Board governing the amount of credit that brokerage firms and dealers may extend to customers for the purchase of securities.
The financial regulation that sets the initial margin requirements for buying stocks and other securities on margin in the United States. It dictates the percentage of the purchase price that must be paid for with the investor's own cash.
Dialectal Variation
British vs American Usage
Differences
The term is specific to US financial regulation. In UK contexts, one would refer to 'margin requirements' set by the FCA, but there is no direct equivalent named 'Regulation T'.
Connotations
In the US, it connotes the legal framework for margin trading. In the UK/other markets, the term is understood only in the context of discussing US finance.
Frequency
Exclusively used in US financial and investment contexts. Extremely rare or non-existent in general British English.
Grammar
How to Use “regulation t” in a Sentence
be governed by + Regulation Tbe in compliance with + Regulation Tset + initial margin + under + Regulation TVocabulary
Collocations
Examples
Examples of “regulation t” in a Sentence
verb
British English
- [Not applicable as a verb]
American English
- [Not applicable as a verb]
adverb
British English
- [Not applicable as an adverb]
American English
- [Not applicable as an adverb]
adjective
British English
- [Not commonly used attributively in UK English]
American English
- The broker issued a Regulation T call.
- We must check the Regulation T requirements.
Usage
Meaning in Context
Business
Used by brokers, compliance officers, and investors when discussing margin trading and leverage.
Academic
Appears in finance, economics, and securities law papers.
Everyday
Virtually never used in everyday conversation.
Technical
Core terminology in stock trading, compliance, and financial regulation documentation.
Vocabulary
Synonyms of “regulation t”
Strong
Neutral
Weak
Vocabulary
Antonyms of “regulation t”
Watch out
Common Mistakes When Using “regulation t”
- Using lower case ('regulation t').
- Using it as a general synonym for 'regulation'.
- Thinking 'T' stands for 'Trading' or 'Transaction' (it's simply a letter designation in the US Code of Federal Regulations).
FAQ
Frequently Asked Questions
No, Regulation T is a specific US Federal Reserve rule. The UK has its own financial regulations set by the Financial Conduct Authority (FCA) governing margin trading, but they are not called 'Regulation T'.
Your broker will issue a 'margin call' (or 'Reg T call'), requiring you to deposit more cash or sell securities to bring your account back into compliance. The broker may also restrict your trading.
It does not stand for a specific word. It is simply the alphabetical designation (Title 12, Part 220 of the Code of Federal Regulations) assigned by the US Federal Reserve Board.
Yes, the Federal Reserve Board has the authority to adjust the initial margin requirement set by Regulation T, although such changes are infrequent and significant.
A specific rule from the US Federal Reserve Board governing the amount of credit that brokerage firms and dealers may extend to customers for the purchase of securities.
Regulation t is usually formal; technical/financial in register.
Regulation t: in British English it is pronounced /ˌreɡ.jəˈleɪ.ʃən tiː/, and in American English it is pronounced /ˌreɡ.jəˈleɪ.ʃən tiː/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “[No common idioms for this technical term]”
Learning
Memory Aids
Mnemonic
Think: 'T' for 'Trade on credit' – it's The rule for how much cash you need To start a Trade.
Conceptual Metaphor
A GUARDRAIL (it sets limits on speculative risk).
Practice
Quiz
What does Regulation T primarily govern?