The objective of the Report is to identify and explore the range of issues relevant to the regulation of Proprietary Trading Systems ("PTSs") which regulatory authorities should consider in determining their regulatory approach to PTSs and on the regulatory issues relating to the cross­border operation of such systems.

The Technical Committee is aware of other work being undertaken by a range of groups on issues related to the Technical Committee's review of PTSs and that parties such as current and potential PTS developers and operators will have views on the regulatory issues involved in the Report. The Report is regarded by the Technical Committee as a contribution to the evolving debate on the regulatory issues for consideration by regulators and other participants in this area.

Comments on the Report by any groups or entities concerned are welcomed by the end of April 1995. They should be sent to the following address:

Mr. Tadashi Uemura

Chairman of the Working Party on Regulation of Secondary Markets

c/o  Securities Bureau

Ministry of Finance of Japan

3­1­1, Kasumigaseki, Chiyoda­ku

Tokyo 100 JAPAN

Tel.:  (81 3) 3581 3505 / Fax:  (81 3) 5251 2156