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Federal Reserve Bank OF DALLAS ROBERT D. M c T E E R , J R . PRESIDENT AND CHIEF EXECUTIVE O F FIC E R May 15 , 1992 d a lla s ,t e x a s 75222 Notice 92-41 TO: The Chief Executive Officer of each member bank and others concerned in the Eleventh Federal Reserve District SUBJECT Request for Comments on the Treatment of U.S. Companies Operating in the French Government Debt Market DETAILS The Federal Reserve Board has requested public comment on whether U.S. companies operating in the French government debt market have the same competitive opportunities as French companies in that market. The Primary Dealers Act of 1988, which became effective in August 1989, provides that the Federal Reserve System may not designate or permit the continuation of the designation as a primary dealer of any person of a foreign country if that person’s home country does not grant to U.S. companies the same competitive opportunities in the underwriting and distribution of government debt instruments issued by the country as the country accords to domestic companies. The Board must receive comments by June 25, 1992. Comments should be addressed to William W. Wiles, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, D.C. 20551. All comments should refer to Docket No. R-0757. ATTACHMENT A copy of the Board’s notice (Federal Reserve System Docket No. R-0757) is attached. MORE INFORMATION For more information, please contact Kathleen O ’Day, Assistant General Counsel, (202) 452-3786; or Deborah Burand, Senior Attorney (202) 452-3427, Legal Division; John Montgomery, Economist, (202) 452-3579; or Larry Promise!, Senior Associate Director, (202) 452-3533, Division of International For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810, This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - Finance. For the hearing impaired only, Telecommunication for the Deaf (TDD), please contact Dorothea Thompson, (202) 452-3544. For additional copies of this Bank’s notice, please contact the Public Affairs Department at (214) 651-6289. Sincerely yours, FEDERAL RESERVE SYSTEM [Docket No. R-0757] Treatment of U.S. Companies Operating in Government Debt Market in France AGENCY: Board of Governors of the Federal Reserve System. ACTION: Notice of study and request for comment. SUMMARY: Under the Primary Dealers Act of 1988, which became effective in August, 1989, the Federal Reserve may not designate or permit the continuation of the designation as a primary dealer of any person of a foreign country if that person’s home country does not grant 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 France and requests public comment on the treatment of U.S. companies with respect to the French government debt market, focusing in particular on the treatment of U.S. companies relative to domestic firms. EFFECTIVE DATE: Comments must be received by June 25, 1992. ADDRESSES: Comments, which should refer to Docket No. R-0757, may be mailed to Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, NW., Washington, DC 20551, to the attention of Mr. William W. Wiles, Secretary. Comments addressed to the attention of Mr. Wiles may be delivered to the Board’s mailroom between 8:45 a.m. and 5:15 p.m., 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 may be inspected in Room B-1122 between 9:00 a.m. and 5:00 p.m., except as provided in section 261.8 of the Board’s Rules Regarding the Availability of Information, 12 CFR 261.8. FOR FURTHER INFORMATION CONTACT: Kathleen O ’Day, Assistant General Counsel (202/452-3786), or Deborah Burand, Senior Attorney (202/452-3427), Legal Division; John Montgomery, Economist (202)/452-3579), or Larry Promisel, Senior Associate Director (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), Dorothea Thompson (202/452-3544), Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, NW., Washington, DC 20551. *■/ SUPPLEMENTARY INFORMATION: Under the Primary Dealers Act of 1988 (Act), 22 U.S.C. §§ 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 2 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. In connection with a proposed transaction, a French company is expected to acquire indirect control of 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 France 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 French government debt instruments as France accords to French domestic companies. All such comments, which should be submitted by June 25, 1992, would be considered in the context of the study of this market. By order of the Board of Governors of the Federal Reserve System, April 21, 1992. (signed) William W. Wiles W illia m W . W iles, Secretary of the Board. [FR Doc. 92-00000 Filed 00-00-92; 8:45 am] BILLING CODE 6210-01-F
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