[Federal Register Volume 63, Number 44 (Friday, March 6, 1998)]
[Proposed Rules]
[Pages 11173-11174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5775]


=======================================================================
-----------------------------------------------------------------------

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: [email protected]. 
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

[[Page 11174]]

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.

    Dated: February 27, 1998.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-5775 Filed 3-5-98; 8:45 am]
BILLING CODE 8010-01-P