H.M. TREASURY NEWS RELEASE

HM Treasury News Release

113/99

5 July 1999

DELTA CLEARING CORP : PROPOSAL BY HM TREASURY TO REVOKE UK OVERSEAS INVESTMENT EXCHANGE RECOGNITION

HM Treasury today formally revoked Delta Clearing Corp's recognition as an overseas investment exchange in the UK under section 37 (as modified by section 40) of the Financial Services Act 1986.

HM Treasury served notice on Delta of its intent to revoke recognition on 12 February 1999. Following Delta's consent on 22 February for revocation, the procedure set out in that announcement is now no longer required . HM Treasury is therefore able to make a revocation order with immediate effect by virtue of s11(8) of the Financial Services Act 1986.

NOTES TO EDITORS

1. Revocation of an overseas investment exchange recognition status under sections 37, 40 and 41 of the Financial Services Act 1986 means that the Delta Clearing Corp no longer has the right to carry out investment business in the UK.

2. The Delta Clearing Corp was granted recognition status on 14 February 1996. Delta was granted the right to extend its US based option trading systems to allow European based participants to purchase and sell options on US Treasury securities and other government debt, securities and repos, and to allow existing participants in the Delta system to purchase and sell options on UK and other European debt, securities and repos.

3. Delta has ceased to trade in the US and UK. It no longer satisfies the following conditions of the Financial Services Act 1986 necessary to be recognised as an overseas investment exchange:

Sections 37(7)(b), 41(2) & (5): Failure to comply with the notification

requirements;

Sections 37(7), 40(4)(b) and 40(2)(b): Failure to satisfy the requirement of

being able to share information with UK authorities; and

Sections 37(7) and 40(4)(c): The Treasury has concluded that revocation is in

the interests of investors or potential investors in the UK.

4. If you have access to the Internet, you can find this news release and other Treasury information at www.hm-treasury.gov.uk