Federal Reserve Board invites public to comment on technical review notice regarding primary dealers operating in Spain


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Board of Governors of the Federal Reserve System.


Notice of review and request for comments.


The Federal Reserve is currently carrying out a review under the Primary Dealers Act of 1988 of the treatment of US companies operating in the Spanish government debt market. As part of this review, the Council is seeking public comments on the treatment of US companies in the Spanish government debt market, and more specifically on whether Spain grants US companies the same competitive opportunities to subscribe and distribute Spanish public debt instruments that Spain grants to Spanish companies. companies.


Comments must be received by November 26, 2021.


You may submit comments, identified by file number OP-1755, by any of the following methods:

• Agency website: http://www.federalreserve.gov. Follow the instructions for submitting comments to http://www.federalreserve.gov/ generalinfo / foia / ProposedRegs.cfm.

• Email: [email protected] Include the case number in the subject line of the message.

• Fax: (202) 452-3819 or (202) 452-3102.

• Mail : Ann E. Misback, Secretary, Federal Reserve System Board of Governors, 20th Street and Constitution Avenue NW, Washington, DC 20551.

All public comments are available on the Council’s website at www.federalreserve.gov/ generalinfo / foia / ProposedRegs.cfm as submitted, except modified for technical reasons or to remove Personally Identifiable Information at the request of the commenter. Accordingly, comments will not be edited to remove identifying or contact information. Public comments can also be viewed electronically or in hard copy in Room 146, 1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. and 5:00 p.m. weekdays.

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Sophia H. Allison, Senior Special Advocate (202-452-3565 or [email protected] ), Legal Division, or Brett Berger, Senior Advisor (202-452-6427 or [email protected] ), Federal Reserve System Board of Governors, 20th and C Streets NW, Washington, DC 20551.

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Under the 1988 Primary Traders Act, 22 USC 5341 -5342 (Act), the Federal Reserve cannot designate a person from a foreign country as a primary dealer, or allow a person from a foreign country to retain his designation as a primary dealer, if the country of that person is not giving US corporations the same competitive opportunities to underwrite and distribute that country’s government debt obligations that that country grants to its domestic businesses. A “person from a foreign country” includes any foreign natural or legal person who directly or indirectly controls a principal trader. The Commission issued decisions under the Act with respect to six foreign countries: Japan (1989), United Kingdom (1989), Switzerland (1989), Germany (1990), France ( 1992) and the Netherlands (1998).

An American bank holding company owned by a Spanish company intends to acquire an American broker currently designated as primary dealer. Under the law, the broker would not be allowed to retain its prime brokerage designation following its acquisition by the Spanish company without it being determined under the law that Spain offers the same competitive opportunities. to American companies to subscribe and distribute the debt of the Spanish government. instruments that Spain grants to Spanish companies.

In order to make this decision, the Federal Reserve conducts a market review in Spanish Start Printed Page 59391public debt instruments. The Board is seeking comments on all aspects of the review. The Board specifically seeks comment on the aspects in which US companies are granted, or are not granted, the same competitive opportunities in the underwriting and distribution of Spanish government debt instruments that Spain grants to companies. Spanish. All comments received will be taken into account as part of the review of this contract.

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By order of the Board of Governors of the Federal Reserve System.

Ann E. Misback,

Secretary of the Board.

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[FR Doc. 2021-23428 Filed 10-26-21; 8:45 am]


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