* See Memorandum to Money Market Funds Advisory Committee No. 3-99 and SEC Rules Committee No. 24-99, dated
April 5, 1999.
[10967]
May 11, 1999
TO: MONEY MARKET FUNDS ADVISORY COMMITTEE No. 5-99
SEC RULES COMMITTEE No. 34-99
RE: REVISED BMA REPO TRADING PRACTICES GUIDELINES
______________________________________________________________________________
As we previously informed you, The Bond Market Association’s (“The BMA”) Funding
Division’s Trading Practices Committee issued Repo Trading Practice Guidelines relating to Year 2000
contingency planning.* The ICI expressed concern to The BMA about the potentially adverse impact
the Guidelines could have on the amount of liquidity available to the repo market in late 1999 and early
2000. The BMA has revised the guidance notes and the Guidelines in an effort to accommodate our
concerns. The most significant change is the new second paragraph of the guidance notes, which
clarifies that the Guidelines are primarily intended to affect discretionary repo activity, and that any
impact that the Guidelines might have on overnight activity is intended to be minimal.
A copy of the revised Guidelines is attached.
Amy B.R. Lancellotta
Senior Counsel
Attachment