22 U.S. Code § 5342 - Requirement of national treatment in underwriting government debt instruments
prev | next
The Congress finds that—
(1) United States companies can successfully compete in foreign markets if they are given fair access to such markets;
(2) a trade surplus in services could offset the deficit in manufactured goods and help lower the overall trade deficit significantly;
(3) in contrast to the barriers faced by United States firms in Japan, Japanese firms generally have enjoyed access to United States financial markets on the same terms as United States firms; and
(4) United States firms seeking to compete in Japan face or have faced a variety of discriminatory barriers effectively precluding such firms from fairly competing for Japanese business, including—
(B) high fixed commission rates (ranging as high as 80 percent) which must be paid to members of the exchange by nonmembers for executing trades;
(C) unequal opportunities to participate in and act as lead manager for equity and bond underwritings;
(b) Designation of certain persons as primary dealers prohibited
(1) General rule
Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, any person of a foreign country as a primary dealer in government debt instruments if such foreign country does not accord to United States companies the same competitive opportunities in the underwriting and distribution of government debt instruments issued by such country as such country accords to domestic companies of such country.
(2) Certain prior acquisitions excepted
Paragraph (1) shall not apply to the continuation of the prior designation of a company as a primary dealer in government debt instruments if—
(B) before July 31, 1987—
(i) control of such company was acquired from a person (other than a person of a foreign country) by a person of a foreign country; or
(c) Exception for countries having or negotiating bilateral agreements with United States
Subsection (b) of this section shall not apply to any person of a foreign country if—
(1) that country, as of January 1, 1987, was negotiating a bilateral agreement with the United States under the authority of section 2112 (b)(4)(A) of title 19; or
(d) “Person of a foreign country” defined
For purposes of this section, a person is a “person of a foreign country” if that person, or any other person which directly or indirectly owns or controls that person, is a resident of that country, is organized under the laws of that country, or has its principal place of business in that country.
LII has no control over and does not endorse any external Internet site that contains links to or references LII.