From: Ray, Sheldon [sheldon.ray@ubspw.com] Sent: Friday, February 14, 2003 12:23 PM To: 'rule-comments@sec.gov' Subject: file no. S7-50-02 Mr. Jonathan G. Katz, Secretary U.S. Securities & Exchange Commission 450 Fifth St., NW Washington, DC 20549-0609 Subject file: S7-50-02 14 February 2003 Dear Mr. Katz: My comments are strictly limited to the disclosure frequency regarding corporate share repurchases. The severe lack of transparency in the U.S. on this issue is somewhat disturbing. Many jurisdictions require almost immediate disclosure of share buybacks while time lags here of over three months in some cases render the information’s value to the public virtually meaningless. Two examples of frequent disclosure that the Commission may wish to consider are those of the U.K. and Hong Kong. I must say that as a global equity manager, it is comforting to have notice of a company’s share repurchase (number of shares and prices) by the close of the London market the same day. This is very relevant to those of us who are responsible for much of the public’s equity investments. When a company’s shares drop severely on bad news, there are often large blocks purchased in the open market, and it is important to know whether the purchaser is a large investor or merely the company itself, in a possible desperate attempt to support its shares. In the U.K. FSA chapter 15.9 states “Any purchase of the company’s own equity shares by or on behalf of the company, or any other member of its group must be notified to the Company Announcements Office as soon as possible and in any event no later than 7:30am on the business day following the calendar day on which the dealing occurred. The notification must include the date of the purchase, the number of equity shares purchased and the purchase price for each of the highest and lowest prices paid, where relevant.” Hong Kong Exchange listing rules chapter 10.06 (4) (a) spells out similar guidelines. According to Andrew Sheng, Chairman of the Securities & Futures Commission, a listed company must report any shares bought back no later than one half hour before the trading session the following day. While the Commission will no doubt receive comments expressing the undue burden of immediate disclosure, I cannot imagine that the frequency of share repurchase activity would constitute such. Respectfully, Sheldon L. Ray, Jr. Washington, DC 20008 **************************************************************************** Please do not transmit orders and/or instructions regarding a UBS PaineWebber or UBS International Inc. account by e-mail. Orders and/or instructions transmitted by e-mail will not be accepted by UBS PaineWebber or UBS International Inc., nor shall UBS PaineWebber and UBS International Inc. be responsible for carrying out such orders and/or instructions. ************************************************************************ For your protection, do not include account numbers, social security numbers, credit card numbers, passwords, or other non-public information in your e-mail. ************************************************************************ The information provided in this e-mail or any attachments is not an official transaction confirmation or account statement. The only official confirmation of a transaction will be sent to you via regular mail or be posted online for your viewing if you have an Online Services account. ************************************************************************ UBS PaineWebber and UBS International Inc. reserve the right to monitor and review the content of all e-mail communications sent or received by employees.