Series 24: 3.7.10. Borrowing By Customers: Regulations U And X

3.7.10.  Borrowing by Customers: Regulations U and X

By setting the margin requirement at 50%, Regulation T ensures that broker-dealers cannot loan a customer more than half the value of a security bought on margin. But Regulation T does not prevent a customer from seeking another lender to finance a margin transaction. Enter Regulation U.