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Fed and SEC publish white paper

Trust/Investments NewsLink

The Federal Reserve Board and Securities and Exchange Commission have released a white paper discussing possible structural changes in the settlement of government securities, and have requested public comment on it.

The paper, published last month in the Federal

Register, was developed with a goal of identifying issues and questions that need to be further explored. In releasing the paper, the staffs of the agencies emphasized they have not concluded that any of the approaches discussed represent an improvement over current arrangements, or that structural change is necessary.

Following the Sept. 11, 2001, terrorist attacks, the agencies held discussions with market participants concerning vulnerabilities in the settlement of government securities. Market participants were interested in exploring structural changes in the provision of settlement services for government securities, including the concept of establishing a utility to conduct settlement.

Comments are requested by Aug. 12, 2002. To view the white paper, go to:

www.federalreserve.gov/

BoardDocs/Press/other/2002/ 20020509/attachment.pdf.

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