[Federal Register Volume 70, Number 148 (Wednesday, August 3, 2005)]
[Notices]
[Page 44701]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-4118]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 52145/July 28, 2005]


Securities Exchange Act Of 1934; Order Regarding Alternative Net 
Capital Computation for Morgan Stanley & Co., Which Has Elected To Be 
Supervised on a Consolidated Basis

    Morgan Stanley & Co. (``MS''), a broker-dealer registered with the 
Securities and Exchange Commission (``Commission''), and its ultimate 
holding company, Morgan Stanley (``MSGroup''), have indicated their 
desire to be supervised by the Commission as a consolidated supervised 
entity (``CSE''). MS, therefore, has submitted an application to the 
Commission for authorization to use the alternative method of computing 
net capital contained in Appendix E to Rule 15c3-1 (17 CFR 240.15c3-1e) 
to the Securities Exchange Act of 1934 (``Exchange Act'').
    Based on a review of the application that MS submitted, the 
Commission has determined that the application meets the requirements 
of Appendix E. The Commission also has determined that MSGroup is in 
compliance with the terms of its undertakings, as provided to the 
Commission under Appendix E. The Commission, therefore, finds that 
approval of the application is necessary or appropriate in the public 
interest or for the protection of investors.
    Accordingly,
    It is ordered, under paragraph (a)(7) of Rule 15c3-1 (17 CFR 
240.15c3-1) to the Exchange Act, that MS may calculate net capital 
using the market risk standards of Appendix E to compute a deduction 
for market risk on some or all of its positions, instead of the 
provisions of paragraphs (c)(2)(vi) and (c)(2)(vii) of Rule 15c3-1, and 
using the credit risk standards of Appendix E to compute a deduction 
for credit risk on certain credit exposures arising from transactions 
in derivatives instruments, instead of the provision of paragraph 
(c)(2)(iv) of Rule 15c3-1.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4118 Filed 8-2-05; 8:45 am]
BILLING CODE 8010-01-P