[Federal Register Volume 71, Number 50 (Wednesday, March 15, 2006)]
[Notices]
[Pages 13443-13444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-3733]


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DEPARTMENT OF STATE

[Public Notice 5341]


Advisory Committee on Private International Law

SUMMARY: The Advisory Committee's study group on investment securities 
will hold a meeting Friday, March 31 from 1 p.m. until 5 p.m. e.s.t. to 
review the results of the second intergovernmental meeting at UNIDROIT 
on a draft multilateral treaty (convention) on harmonization of certain 
aspects of investment securities transactional law. The meeting will 
examine in particular provisions on clearing and settlement of 
securities transactions through or involving intermediaries, as well as 
provisions on the relation of intermediaries and issuers of securities 
and collateral useages including netting of securities transactions.

Background

    UNIDROIT (the International Institute for the Unification of 
Private Law, an international organization headquartered in Rome, 
Italy, which the United States participates actively in as a member 
state) has initiated a project to prepare a multilateral treaty 
(convention) on certain aspects of investment securities transactional 
law. Preliminary studies and proposals were initiated in 2002, and the 
first intergovernmental meeting held in May 2005. The second meeting 
will take place in mid-March 2006, and the Advisory Committee meeting 
is intended to be an initial review of revisions, if any, to the draft 
convention, and to assess prospects for future negotiations as well as 
objectives that should be sought. The latter will need to take into 
account the differences in legal systems, existing laws on investment 
securities transactions, and differences in securities markets as well 
as regulatory systems of the fifty or so countries that participate.

Scope

    The subject matter of the preliminary draft convention is 
``Harmonized Substantive Rules Regarding Intermediated Securities'' and 
at this point includes rights and obligations associated with 
transactions or dispositions of investment securities such as crediting 
of securities to a securities account, instructions by an account 
holder, the role and obligations of intermediaries, effect of rules of 
clearing and settlement systems, whether upper-tier attachment is 
permissible, priority among competing interests, protection of bona 
fide acquirers, effect on insolvency proceedings, intermediaries 
relationship to issuers of securities, rights of setoff, and provisions 
with respect to collateral transactions such as use of or substitution 
of collateral, netting, and other matters. The foregoing matters are 
largely subjects in the United States of uniform securities transaction 
laws as set out in Uniform Commercial Code Articles 8 and 9. Conclusion 
of a text, if that is achieved, which is unlikely to occur before 2007, 
does not obligate any country to adopt or implement its provisions in 
any way.

Agenda

    The Advisory Committee's Study group agenda will review viewpoints 
of various participating countries and financial associations or other 
organizations that participate in the process, as well as revisions if 
any to the draft text. It will also cover, time permitting, related 
developments in international investment securities regulation and 
practice. The Advisory Committee offers an opportunity for interested 
members of the public or entities, associations and others to comment 
on these developments and to make recommendations for future proposals.

Public Participation

    Advisory Committee Study group meetings are open to the public. The 
meeting will be at the offices of the Federal Reserve Bank of New York, 
33 Liberty Street, NYC. Persons wishing to attend need to provide in 
advance, not later than Wednesday, March 29 their name, address, 
contact numbers, including e-mail address if available, and 
affiliation(s) to [email protected].
    Additional meeting information can be obtained from Ms. Smeltzer at 
202-

[[Page 13444]]

776-8423. Persons who cannot attend but who wish to comment on any of 
the topics referred to are welcome to do so in writing or by e-mail to 
[email protected] or [email protected].

Documents

    Documents on this project, including the current and prior drafts 
of the convention, background, and proposals of participants are 
available at http://www.Unidroit.org. Additional documents may be 
available following the mid-March meeting on that site or by request to 
Ms. Smeltzer. For further information on UNIDROIT generally please 
contact Hal Burman at the State Department at the above e-address or by 
fax at 202-776-8482.

    Dated: March 9, 2006.
Mary Helen Carlson,
Attorney Advisor, Advisory Committee, Department of State.
[FR Doc. E6-3733 Filed 3-14-06; 8:45 am]
BILLING CODE 4710-08-P