SUBJECT: PROPOSED RULE CHANGE TO NSCC’S MUTUAL FUND SERVICES TRANSFER SERVICE

National Securities Clearing Corporation ("NSCC" or the " Corporation") filed a rule change with the Securities and Exchange Commission ("SEC"), pursuant to Section 19(b)(2) of the Securities Exchange Act of 1934, concerning a change to the Corporation’s Mutual Fund Services.

The proposed rule change will enable NSCC to shorten the time frame between a Delivering Fund Member’s acknowledgment and confirmation of a mutual fund transfer request permitting more expeditious transfers.

At present, a Delivering Fund Member who has acknowledged a transfer request must confirm the value of the Fund/SERV eligible mutual fund shares or UIT units to be transferred by submitting a confirmation to NSCC no earlier than two (2) days and no later than sixty (60) business days after the submission of an acknowledgment. The proposed rule change will permit the Delivering Fund Member to submit a confirmation no earlier than one (1) day and, as is the case today, no later than sixty (60) business days after the submission of an acknowledgment.

Members will be notified by Important Notice of approval of the proposed rule change. Subject to such approval, the Corporation expects to implement these changes in December 1998.

The text of the proposed rule change may be obtained by contacting the NSCC Legal Department at (212) 412-8634.

Written comments on the proposed rule filing may be addressed to David F. Hoyt, Assistant Secretary, National Securities Clearing Corporation, 55 Water Street, New York, New York 10041, and your comments will be forwarded to the Securities and Exchange Commission. You may also address your written comments to the Secretary of the Commission, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, D.C. 20549. We request that you provide NSCC with a copy of your comments.

Questions regarding the rule filing should be directed to Richard J. Paley, Associate Counsel, at (212) 412-8874. Questions regarding the ToRA service should be directed to your account manager, NSCC’s Mutual Fund Services Hotline, at (212) 412-8893, or Adam H. Purcell, Participant Services Representative, at (212) 412-8848.

Robert J. Woldow
Managing Director and General Counsel