FOR IMMEDIATE RELEASE                                       98-32

     SEC TAKES ACTION TO INCREASE COMPETITION IN POST-TRADE
                     INFORMATION PROCESSING
                                
     Washington, DC, April 6, 1998 -- The Securities and Exchange
Commission today took action to increase competition among
services transmitting post-trade information between broker-
dealers and institutions.  The Commission put out for public
comment proposed rule changes from the markets to allow new
entrants into the business of processing confirmations and
affirmations for institutional trades.  The Commission also
clarified that comparison services that match confirmations and
affirmations are clearing agencies.  To encourage competition and
innovation, while maintaining a sound clearance and settlement
system, the Commission requested comment on broad exemptions from
full regulation as clearing agencies for these services.

     "Today's actions are the result of efforts of the
Commission, the self-regulatory organizations, and the industry
to increase competition in the field of post-trade information
processing.  These actions strike the correct balance between the
Commission's goal of increasing competition in the securities
industry and its obligation to ensure the safety and soundness of
the national system for the clearance and settlement of
securities transactions," said Arthur Levitt, Chairman of the
Securities and Exchange Commission.

     Specifically, the Commission has put out for public comment
notices of proposed rule changes filed by the New York Stock
Exchange, the National Association of Securities Dealers, and the
Municipal Securities Rulemaking Board under which qualified
electronic trade confirmation vendors would be allowed to provide
confirmation and affirmation services for institutional trades.
The Commission also issued a release stating it has concluded
that entities that provide trade matching services are "clearing
agencies" under the Securities Exchange Act of 1934 and
soliciting comments on possible approaches to regulating those
entities.  Finally, the Commission approved a proposed rule
change filed by The Depository Trust Company to add a trade
matching feature to its existing confirmation/affirmation
service.

     Currently, the SROs' confirmation rules require their
members to use the services of a registered clearing agency for
the electronic confirmation and affirmation of institutional
trades.  For several years, the Commission has worked with the
SROs and industry representatives to expand the scope of the
SROs' confirmation rules.  The Commission's Division of Market
Regulation facilitated the drafting of the revised confirmation
rules that will be published for public comment.

     Institutional trade matching, a more recent enhancement to
post-trade processing, raises important issues under the
Securities Exchange Act of 1934.  Under the Commission's
interpretation of the term "clearing agency," matching services
must be performed by a registered clearing agency.  The
Commission is seeking comment on ways to encourage other entities
to provide matching services through modified regulation as
clearing agencies or conditional exemption from registration.

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