June 18, 1992
TO: BROKER/DEALER ADVISORY COMMITTEE NO. 20-92
RE: NETWORKING AGREEMENT
__________________________________________________________
Enclosed is a copy of the proposed standard NETWORKING
Agreement (along with the current Committee membership list which
was inadvertently omitted from the mailing of the agenda and
minutes). The NETWORKING Agreement Task Force has completed its
work on this project with the exception of changing the format of
the agreement to allow NETWORKING participants to execute the
agreement only once and have the agreement be effective between
the signer and all of the signer’s NETWORKING contraparties.
This approach will avoid the necessity for each pair of
NETWORKING contraparties to separately execute the agreement,
while acomplishing the same result.
The NSCC has agreed to develop a rulemaking proposal for
the submission to the SEC that would require all NETWORKING
participants to execute the NETWORKING Agreement and deliver a
copy of the executed agreement to NSCC as a condition to
participation in NETWORKING. The change to a one-signer format
will reduce substantially the NSCC’s recordkeeping burden.
As you know, the NETWORKING Agreement is on the Committee’s
meeting agenda for the June 22-23 meeting. It will be addressed
early in the day on Tuesday, June 23. We expect any discussion
to be relatively brief and to focus on a very few matters on
which indivudual Task Force members may wish to solicit input
from the Committee.
We wish to commend the members of the Task Force for their
valuable contribution to the development of a fair and workable
standard NETWORKING Agreement. We look forward to seeing you in
Washington next week.
Donald E. O’Connor
Vice President - Operations
Enclosures