Government Securities Fair Competition Act of 1988

Government Securities Fair Competition Act of 1988 - Prohibits the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York from designating any person of a foreign country as a primary dealer in governmental debt instruments if such country does not accord to U.S. companies the same competitive opportunities in the underwriting and distribution of instruments issued by such country as are accorded to domestic companies. Exempts from such prohibition: (1) any company designated as a primary dealer and acquired by a person of a foreign country before July 31, 1987; and (2) any person of a foreign country if such country, as of January 1, 1987, was negotiating, or had entered into, a bilateral free trade agreement with the United States.

Amends the Securities Exchange Act of 1934 to prohibit any person of a foreign country which does not accord to U.S. brokers and dealers the same competitive opportunities accorded to domestic brokers and dealers from acquiring any registered broker or dealer unless the Securities and Exchange Commission has been given 45 days' advance notice of the proposed acquisition and has not prohibited such acquisition. Authorizes the Commission to deny any application for registration filed by any person of such country and to prohibit any acquisition of a broker or dealer by any person of such country.