May 3, 1993
TO: INSURANCE BROKER-DEALER ADVISORY COMMITTEE NO. 7-93
BANK BROKER/DEALER ADVISORY COMMITTEE NO. 11-93
RE: NETWORKING AGREEMENT
__________________________________________________________
Enclosed for your information is a copy of the standard
NETWORKING Agreement which was developed as a cooperative
undertaking of representatives of the fund and brokerage
industries. The Agreement underwent many rounds of negotiations
between funds and brokers in numerous ICI task force and
committee meetings and reflects the consensus and reasonable
compromises of both groups. In developing the Agreement, the
Institute utilized the services of outside securities law counsel
for research and writing.
Many major brokers and mutual fund groups who are
NETWORKING participants have agreed to utilize the revised
Agreement. In addition, the NSCC has agreed to begin accepting
executed copies of the revised Agreement from NETWORKING
participants and to identify in its regular reports to NETWORKING
participants those participants who have executed the Agreement.
The Institute is continuing to work with the NSCC to have an NSCC
proposed rule filed with the SEC requiring each NETWORKING
participant to execute and file the Agreement with the NSCC in
order to begin or continue its participation in NETWORKING.
Attached is a description of the various NETWORKING matrix
levels that can be used as Exhibit A to the Agreement. However,
as provided in Section IV, paragraph 2, this description may be
modified in accordance with your individual arrangements with
NETWORKING counterparties.
Many ICI members and NETWORKING participants have inquired
about the status of this project and we are pleased to be able to
deliver the Agreement ready to use.
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NETWORKING participants wishing to utilize the Agreement
should mail an executed copy of the Agreement to:
National Securities Clearing Corporation
55 Water Street
New York, NY 10041
ATTN: Dave Hoyt
We will keep you informed of further developments.
Donald J. Boteler
Assistant Vice President -
Operations
Attachment
Enclosure