U.S. LEGISLATION COULD BAR JAPANESE DEALERS
The House Banking Committee approved
legislation to bar foreign securities firms from designation as
primary dealers in U.S. government securities unless the
relevant foreign government allows U.S. securities firms the
same trading rights.
    The impact of the proposed legislation would be on three
Japanese securities firms already doing business in the U.S.,
an aide to the sponsor of the provision Rep. Charles Schumer
said. Japan would have six months to open its government
securities markets to U.S. firms before the ban would start.
Other foreign firms would meet the test of reciprocal access.
    The legislation was approved as part of a major trade bill,
which the House will consider next month. The bill also has to
be considered by the Senate and signed by the president.
    The three Japanese firms are Nomura Securities Co. and
Daiwa Securities Co., which received approval from the U.S.
Federal Reserve Board to serve as primary dealers, and Aubrey
G. Lanston Co., owned by the Industrial Bank of Japan.
    Schumer, a New York Democrat, said the Fed would not be
allowed to designate any new firms as primary dealers unless
their government allows reciprocal access to U.S. companies.
Both the House and Senate Banking Committees opposed the Fed
action on the two Japanese firms.
 Reuter
