August 6, 1998

The Honorable Arthur Levitt, Jr.
Chairman
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Dear Chairman Levitt:

I am writing with respect to the enclosed correspondence from Mr. Larry E. Fondren concerning the lack of price transparency in the U.S. bond market.

Please have someone look into this matter and provide us with your views. I request that the Commission conduct a comprehensive review of the state of price transparency in our fixed income markets and submit a report to Congress with any recommendations for regulatory and legislative action deemed necessary and appropriate. I would appreciate Commission staff discussing with Committee staff suggestions for a framework and timetable for completion of that study. As part of your study, I ask that you review whether there is, or has been, anti-competitive and collusive behavior in the bond market and whether the current structure of that market contributes to such behavior and discourages price transparency, competition, innovation and efficiency.

Thank you for your cooperation and attention to this request.

Sincerely,

JOHN D. DINGELL
RANKING MEMBER

Enclosures

cc: Mr. Larry E. Fondren

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