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#Written by David Tam, 1997.           #       
#davidkftam@netscape.net Copyright 1999#
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David Tam
Thursday, March 6, 1997.

                             Business Press Review
                             =====================

Ip, Greg. "Thomson dispute with NYSE pulls in SEC". The Globe and Mail.
Monday, March 3, 1997. B6.                          ------------------

    This article talks about a heavily regulated service that all brokers on
stock exchanges must use.  This rule requires brokers to use a securities
depository to send trade confirmations to investors.  In this particular
article, Thomson Financial Services, a unit of Toronto-based Thomson Financial,
is appealing to the SEC in the state of New York to change its monopolistic
rules.  Currently, only one company is allowed to offer this service to the
NYSE.  Depository Trust Co. offers this exclusively, a service that usually
takes three days to complete.  Thomson, on the other hand, claims that they can
offer a much quicker service that would only take one day to complete.
However, the NYSE has denied Thomson of this opportunity, leaving Depository
Trust Co, with complete protection from any possible competition, giving it a
"virtual" monopoly in the industry.  Disgruntled, Thomson has asked the SEC
review rule 387 of its policy, which it believes is anti-competitive.

    There is an interesting controversy between the two companies, Thomson and
DTC (Depository Trust Co.).  The DTC is stating that if Thomson wishes to enter
the industry, they should register themselves as a clearing agency.  DTC is
also accusing Thomson of being anti-competitive by blocking DTC from entering
Thomson's business of "allocation".  In response to this accusation, Thomson is
accusing DTC of attempting to steal its business of allocation while trying to
stop others from entering their own industry of trade confirmation.

    This article shows how the ruling of the SEC can have serious effects on
investors, traded companies, and possibly the public as well.  The power of the
SEC can be seen as it has a final decision on important issues such as
competitive and monopolistic laws.  This article shows how government can
delegate its responsibility to independent regulatory bodies.