Wedbush Securities Scott.....>

US TSYS/OVERNIGHT REPO: Wedbush Securities Scott Skyrm noted the "FICC's new

Sponsored DVP Repo Service is growing. As you know, since full membership into

FICC requires participation in the default fund and money market funds are not

allowed to participate in such funds, FICC created a junior form of membership.

Sponsored membership allows a money fund access to FICC as long as a member

contributes to the default fund for them."

- He said that "as of now, there are three or four money funds trading in FICC

with sponsored membership and are averaging $16 billion a day in volume, up $10

billion from last month. This is a clear indication of the growing interest in

the program, which was less than $1 billion before June of this year."

- He said "it's also interesting to watch whether this will affect volume at the

Fed's RRP program. Depending on (US Treasury) GC rates, there is usually a

substantial interest rate advantage executing cash investments in the

inter-dealer market cleared in FICC than the RRP program at 1.00%."