Proposed Rule:
OTC Derivatives Dealers, Net Capital Rule
SECURITIES AND EXCHANGE COMMISSION
17 CFR Parts 200, 240, 249
(Release No. 34-39704; File Nos. S7-30-97; S7-31-97; S7-32-97)
RIN 3235-AH16, 3235-AG18, 3235-AH29
OTC Derivatives Dealers, Net Capital Rule
AGENCY: Securities and Exchange Commission
ACTION: Proposed rule; concept release; extension of comment period
SUMMARY: The Securities and Exchange Commission ("Commission") is extending the comment periods for two releases proposing rules and rule amendments under the Securities Exchange Act of 1934 (Release Nos. 34-39454 and 34-39455) and one concept release (Release No. 34-39456), which were published in the Federal Register on December 30, 1997. The comment period for Release No. 34-39454, concerning OTC derivatives dealers, is being extended to April 6, 1998. The comment period for Release No. 34-39455, concerning the treatment under the Commission’s net capital rule of certain interest rate instruments, is being extended to May 4, 1998. The comment period for Release No. 34-39456, addressing the use of statistical models in setting the capital requirements for a broker-dealer’s proprietary positions, is being extended to May 4, 1998.
DATES: Comments should be received on or before April 6, 1998 with respect to Release No. 34-39454 (62 FR 67940) (OTC Derivatives Dealers). Comments should be received on or before May 4, 1998 with respect to Release Nos. 34-39455 (62 FR 67996) (Net Capital Rule -- Interest Rate Instruments) and 34-39456 (62 FR 68011) (Net Capital Rule -- Concept Release).
ADDRESSES: Comments should be submitted in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. Comments may also be submitted electronically at the following E-mail address: rule-comments@sec.gov. Comment letters should refer to File No. S7-30-97 for Release No. 34-39454 (OTC Derivatives Dealers); File No. S7-31-97 for Release No. 34-39455 (Net Capital Rule -- Interest Rate Instruments); and File No. S7-32-97 for Release No. 34-39456 (Net Capital Rule -- Concept Release). The file numbers should be included on the subject line if E-mail is used. Comment letters received will be available for public inspection and copying in the Commission’s Public Reference Room, 450 Fifth Street, N.W., Washington, D.C. 20549. Electronically submitted comment letters will be posted on the Commission’s Internet web site (http: //www.sec.gov).
FOR FURTHER INFORMATION CONTACT:
Release No. 34-39454 (OTC Derivatives Dealers):
General:
Catherine McGuire, Chief Counsel, Glenn J. Jessee, Special Counsel, or Patrice Gliniecki, Special Counsel, at (202) 942-0073, Division of Market Regulation, Securities and Exchange Commission, 450 Fifth Street, N.W., Mail Stop 7-11, Washington, D.C. 20549.
Financial Responsibility and Books and Records:
Michael Macchiaroli, Associate Director, at (202) 942-0132, Peter R. Geraghty, Assistant Director, at (202) 942-0177, Thomas K. McGowan, Special Counsel, at (202) 942-4886, Christopher Salter, Attorney, at (202) 942-0148, Matt Hughey, Accountant, at (202) 942-0143, or Gary Gregson, Statistician, at (202) 942-4156, Division of Market Regulation, Securities and Exchange Commission, 450 Fifth Street, N.W., Mail Stop 2-2, Washington, D.C. 20549.
Release Nos. 34-39455 (Net Capital Rule -- Interest Rate Instruments) and 34-39456 (Net Capital Rule -- Concept Release):
Michael Macchiaroli, Associate Director, at (202) 942-0132, Peter R. Geraghty, Assistant Director, at (202) 942-0177, Thomas K. McGowan, Special Counsel, at (202) 942-4886, Christopher Salter, Attorney, at (202) 942-0148, or Gary Gregson, Statistician, at (202) 942-4156, Division of Market Regulation, Securities and Exchange Commission, 450 Fifth Street, N.W., Mail Stop 2-2, Washington, D.C. 20549.
SUPPLEMENTARY INFORMATION:
On December 17, 1997, the Commission issued for comment Release No. 34-39454, soliciting comment on proposed rules and rule amendments under the Exchange Act that would tailor capital, margin, and other broker-dealer regulatory requirements to a class of registered dealers, called OTC derivatives dealers, active in over-the-counter derivatives markets. The proposed regulations for OTC derivatives dealers are intended to allow securities firms to establish dealer affiliates that would be able to compete more effectively against banks and foreign dealers in global over-the-counter markets. The Commission originally requested that comments on the proposed rules and rule amendments be received by March 2, 1998.
On December 17, 1997, the Commission also issued for comment two releases relating to the Commission’s capital requirements for broker-dealers. In Release No. 34-39455, the Commission solicited comment on proposed amendments to Rule 15c3-1 (17 CFR 240.15c3-1) under the Exchange Act that would alter the charges, or "haircuts," from net worth in computing net capital for certain interest rate instruments, including government securities, investment grade nonconvertible debt securities, certain mortgage-backed securities, money market instruments, and debt-related derivative instruments. In Release No. 34-39456, the Commission solicited comment on a concept release considering the extent to which statistical models should be used in setting the capital requirements for a broker-dealer’s proprietary positions. The Commission originally requested that comments on these two releases be received by March 30, 1998.
The Commission has recently received requests from interested persons to extend the comment periods for these three releases. The Commission believes that extending the comment periods is appropriate in order to give the public additional time to comment on the matters the releases address. Therefore, the comment period for Release No. 34-39454 (OTC Derivatives Dealers) is extended from March 2, 1998 to April 6, 1998, and the comment periods for Release Nos. 34-39455 (Net Capital Rule -- Interest Rate Instruments) and 34-39456 (Net Capital Rule -- Concept Release) are extended from March 30, 1998 to May 4, 1998.
By the Commission.
Jonathan G. Katz
Secretary
February 27, 1998
http://www.sec.gov/rules/proposed/34-39704.htm
