January 15, 1992
TO: SEC RULES COMMITTEE NO. 3-92
UNIT INVESTMENT TRUST COMMITTEE NO. 2-92
MONEY MARKET FUNDS AD HOC COMMITTEE NO. 2-92
RE: FORMATION OF SECONDARY MARKET DISCLOSURE TASK FORCE
__________________________________________________________
Several Institute members have expressed concern about the
lack of secondary market disclosure in the debt markets. In
addition, SEC Commissioner Roberts discussed this issue in his
keynote address at the Institute's Conference on Creditors'
Rights Issues for Investment Companies last November. As a first
step to address this problem, Commissioner Roberts suggested that
the Commission consider restricting tax-exempt money market funds
from investing in short-term municipal securities of issuers that
do not pledge to provide secondary market disclosure.
At the SEC Rules Committee meeting on January 14, we
briefly discussed forming a task force to consider this issue and
possible ways in which it could be addressed. If you are
interested in participating on this task force, please call me at
202/955-3523 by January 31.
Amy B.R. Lancellotta
Associate General Counsel