UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 


Litigation Release No. 14977 / July 10, 1996

SECURITIES AND EXCHANGE COMMISSION v. FENCHURCH CAPITAL
MANAGEMENT, LTD., (N.D. Ill., Civil Action No. 96C 4162) 

The Securities and Exchange Commission ("Commission") today
announced the filing of a Complaint in the United States District
Court for the Northern District of Illinois against Fenchurch
Capital Management, Ltd. ("Fenchurch"), a commodity trading
advisor and commodity pool operator.  The Commission's Complaint
alleges that Fenchurch engaged in a scheme, accomplished through
materially false and misleading statements and other activities,
to reduce the available supply in the repurchase ("repo") market
of the cheapest-to-deliver U.S. Treasury security for the June
1993 10-year U.S. Treasury note futures contract ("June
contract").  According to the Complaint, Fenchurch thereby
received from parties who were short the June contract the next
cheapest-to-deliver, or more valuable, security in satisfaction
of their delivery obligations under the June contract.

More specifically, the Commission's Complaint alleges that in
June 1993, Fenchurch held a substantial long position in the June
contract and thus would profit from delivery of the more valuable
security.  By deliberately misleading counterparties in repo
transactions to believe that it was short the June contract and
needed the cheapest-to-deliver security used as collateral in
those transactions returned to it to meet its own delivery
obligations under that contract, Fenchurch secured agreements
from the counterparties not to relend the security to the repo
market.  Through these material misrepresentations and other
activities, Fenchurch removed from the market a significant
quantity of the cheapest-to-deliver security.  As a result,
Fenchurch received approximately $480 million of the more
valuable security, in satisfaction of delivery obligations under
approximately one-third of Fenchurch's position in the June
contract, and profited by the receipt of the more valuable
security.  

Simultaneously with the filing of the action, Fenchurch
consented, without admitting or denying the allegations of the
Complaint, to the entry of a final judgment of permanent
injunction enjoining it from violating the antifraud provisions
of the Securities and Exchange Act of 1934, and requiring it to
pay to the U.S. Treasury $600,000, representing disgorgement,
prejudgment interest thereon and a civil penalty.  The same
$600,000 will also satisfy Fenchurch's payment obligation under
an order issued today by the Commodity Futures Trading Commission
concerning related conduct, to which Fenchurch has consented.