[Federal Register Volume 62, Number 248 (Monday, December 29, 1997)]
[Notices]
[Page 67642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33652]


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FEDERAL RESERVE SYSTEM

[Docket No. R-0997]


Treatment of U.S. Companies Operating in Government Debt Market 
in the Netherlands

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice of study and request for comment.

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SUMMARY: Under the Primary Dealers Act of 1988, which became effective 
on August 23, 1989, the Federal Reserve may not designate or permit the 
continuation of the designation of any person of a foreign country as a 
primary dealer in government debt instruments if such foreign country 
does not accord to U.S. companies the same competitive opportunities in 
the underwriting and distribution of government debt instruments issued 
by such country as such country accords to its domestic companies. 
Pursuant to this Act, the Federal Reserve is reviewing the government 
debt market of the Netherlands and requests public comment on the 
treatment of U.S. companies with respect to the Netherlands' government 
debt market, focusing in particular on the treatment of U.S. companies 
relative to domestic firms.

DATE: Comments must be received by February 27, 1998.

ADDRESSES: Comments, which should refer to Docket No. R-0997, may be 
mailed to the Board of Governors of the Federal Reserve System, 20th 
Street and Constitution Avenue NW, Washington, D.C. 20551, to the 
attention of Mr. William W. Wiles, Secretary. Comments addressed to the 
attention of Mr. Wiles may also be delivered to the Board's mailroom 
between 8:45 a.m. and 5:15 p.m. weekdays and to the security control 
room outside of those hours. Both the mailroom and the security control 
room are accessible from the courtyard entrance on 20th Street between 
Constitution Avenue and C Street, NW. Comments will be available for 
inspection and copying by members of the public in the Freedom of 
Information Office, Room MP-500, between 9:00 a.m. and 5:00 p.m. 
weekdays, except as provided in section 261.8 of the Board's Rules 
Regarding the Availability of Information.

FOR FURTHER INFORMATION CONTACT: Kathleen O'Day, Associate General 
Counsel (202/452-3786), or Ann Misback, Managing Senior Counsel (202/
452-3788), Legal Division; or Larry Promisel, Senior Advisor (202/452-
3533), Division of International Finance; Board of Governors of the 
Federal Reserve System. For the hearing impaired only, 
Telecommunication Device for the Deaf (TDD), Diane Jenkins (202/452-
3544), Board of Governors of the Federal Reserve System, 20th and C 
Streets NW., Washington, D.C. 20551.

SUPPLEMENTARY INFORMATION: Under the Primary Dealers Act of 1988 
(``Act''), 22 U.S.C. Secs. 5341-5342, the Federal Reserve may not 
permit a person of a foreign country to act as a primary dealer in U.S. 
government securities if the person's home country does not accord U.S. 
companies the same competitive opportunities as the foreign country 
accords domestic companies in underwriting and distributing government 
debt obligations of such foreign country. A ``person of a foreign 
country'' includes any foreign individual or company that directly or 
indirectly controls a primary dealer.
    A subsidiary of a bank organized in the Netherlands proposes to be 
designated as a primary dealer in U.S. government securities. 
Accordingly, in order to make the determination required by the Act, 
the Federal Reserve is undertaking a study of the government debt 
market of the Netherlands to determine whether U.S. companies are 
accorded national treatment in their access to that market.
    The Federal Reserve would welcome the views of U.S. firms or other 
persons on the specific respects in which U.S. companies are accorded, 
or are not accorded, the same competitive opportunities in the 
underwriting and distribution of Dutch government debt instruments as 
the Netherlands accords to Dutch domestic companies. All such comments, 
which should be submitted by February 27, 1998, would be considered in 
the context of the study of this market.

    By order of the Board of Governors of the Federal Reserve 
System, December 19, 1997.
William W. Wiles,
Secretary of the Board.
[FR Doc. 97-33652 Filed 12-24-97; 8:45 am]
BILLING CODE 6210-01-P