March 25, 1991
TO: ACCOUNTING/TREASURERS COMMITTEE NO. 5-91
RE: DEPOSITORY TRUST COMPANY'S INTERNATIONAL INSTITUTIONAL
DELIVERY SYSTEM
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As you know, in the early 1980's the Institute assisted
Depository Trust Company ("DTC") in its efforts to expand the
usage of their Institutional Delivery ("ID") System. Those
efforts were quite successful as the ID System is now widely used
by mutual funds and other investment advisors.
DTC has recently introduced the International Institutional
Delivery ("IID") System which is the counterpart of the
confirmation/affirmation piece of the ID System for international
trading and has again come to the Institute requesting assistance
in expanding the usage of the IID System. The enclosed DTC
proposal describes the IID System and its benefits, and explains
how the Institute's members could help to increase its usage.
Basically, DTC is requesting that mutual funds support IID
by asking the brokers with whom you do international trades to
become participants of IID. At this point the Institute is not
taking a position that mutual fund members should "champion" IID,
but we would appreciate receiving your firm's view. We recognize
that not only is international trading more complex than domestic
trading but the competitive and political issues surrounding the
use of the IID system, or some other similar system, are also
more complex.
We are requesting that you provide your organization's
viewpoint on this issue by completing the attached questionnaire.
Please return the completed questionnaire to the Institute by
April 15, 1991. Questions can be directed to the undersigned at
(202)955-3547. Thank you in advance for your input.
Diane Butler
Director of
Operations &
Fund Custody
Enclosures