H.R. 10553 — Margin Eligibility Modernization Act

This section directs the Board of Governors of the Federal Reserve System to revise the definition of “OTC margin stock” within 90 days of enactment to include any equity security traded over the counter for which there is a ready market, as defined in 17 CFR 240.15c3–1(c)(11). If the Board fails to issue the required rule, the expanded definition applies automatically until the rule is issued, and the Board must report to Congress after five years on credit extended under the rule and associated financial system risks.