Order Granting Temporary, Conditional Relief From the Net Capital Rule for Barclays Capital, Inc., 55571-55572 [E8-22503]
Download as PDF
<![CDATA[
Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Notices
system. The Commission finds that
permitting the Chairman of the CTA/CQ
Operating Committee to submit
ministerial amendments will increase
the efficiency of the administration of
the Plans and increase the timeliness of
updating the Plans for accuracy.
Additionally, the Commission finds that
the proposed Amendments streamlining
the process for admitting new
Participants remove impediments to
competition by facilitating the timely
admission of a new Participant to the
Plans.
IV. Conclusion
It is therefore ordered, pursuant to
Section 11A of the Act,13 and Rule 608
thereunder,14 that the proposed
amendments to the CTA and CQ Plans
(SR–CTA/CQ–2008–02) are approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E8–22489 Filed 9–24–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: [73 FR 54644,
September 22, 2008]
STATUS:
PLACE:
Closed Meeting.
100 F Street, NE., Washington,
DC.
DATE AND TIME OF PREVIOUSLY ANNOUNCED
MEETING: Tuesday, September 23, 2008
at 10 a.m.
Date Change.
The Closed Meeting scheduled for
Tuesday, September 23, 2008 at 10 a.m.,
has been changed to Wednesday,
September 24, 2008 at 10 a.m.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items. For further
information and to ascertain what, if
any, matters have been added, deleted
or postponed, please contact: The Office
of the Secretary at (202) 551–5400.
mstockstill on PROD1PC66 with NOTICES
CHANGE IN THE MEETING:
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Monday, September 29, 2008 at 2
p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(5), (7), 9(B) and (10) and
17 CFR 200.402(a)(5), (7), 9(ii) and (10),
permit consideration of the scheduled
matters at the Closed Meeting.
Commissioner Casey, as duty officer,
voted to consider the items listed for the
Closed Meeting in closed session.
The subject matter of the Closed
Meeting scheduled for Monday,
September 29, 2008 will be:
Formal orders of investigation;
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings of an
enforcement nature; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
Dated: September 22, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–22644 Filed 9–24–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 58612]
Dated: September 22, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–22546 Filed 9–24–08; 8:45 am]
Order Granting Temporary, Conditional
Relief From the Net Capital Rule for
Barclays Capital, Inc.
BILLING CODE 8010–01–P
September 22, 2008.
Barclays Capital, Inc. (‘‘Barclays
Capital’’) is a broker-dealer registered
with the Securities and Exchange
Commission (‘‘Commission’’). Barclays
13 15
U.S.C. 78k–1.
14 17 CFR 240.608.
15 17 CFR 200.30–3(a)(27).
VerDate Aug<31>2005
17:50 Sep 24, 2008
Jkt 214001
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
55571
Capital’s ultimate holding company is
Barclays Group (‘‘Barclays Group’’),
which is supervised by the United
Kingdom Financial Services Authority.
Barclays Group, through Barclays
Capital, has entered into an agreement
to purchase substantially all of the
assets, businesses and personnel of
Lehman Brothers Inc. (‘‘Lehman’’).
On November 9, 2005, the
Commission issued an Order approving
Lehman’s application to use the
alternative method of computing net
capital contained in Appendix E
(‘‘Appendix E’’) to Rule 15c3–1 (17 CFR
240.15c3–1e) under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’).
In a September 19, 2008 letter to the
Commission, Barclays Capital and
Barclays Group applied to the
Commission for an exemption that
would permit Barclays Capital, as
successor to a substantial portion of
Lehman’s assets and liabilities, to
continue to use for a temporary period
the alternative method of computing net
capital contained in Appendix E solely
when computing capital charges for the
positions it acquires from Lehman.
Pursuant to paragraph (b)(3) of Rule
15c3–1, the Commission may, upon
written application, exempt from the
provisions of Rule 15c3–1, either
unconditionally or on specified terms
and conditions, any broker or dealer
who satisfies the Commission that,
because of the special nature of its
business, its financial position, and the
safeguards it has established for the
protection of customers’ funds and
securities, it is not necessary in the
public interest or for the protection of
investors to subject the particular broker
or dealer to the provisions of Rule 15c3–
1.
In its letter, Barclays Capital and
Barclays Group have represented to the
Commission that until such time as the
Commission acts on Barclays Capital’s
application to use the alternate net
capital treatment and supervision on a
consolidated basis, Barclays Capital
will:
(1) File a draft application promptly,
and cooperate and file with the
Commission a plan to complete all
requirements of such application
process (including a timeline) and file a
completed application in accordance
with Appendix E to Exchange Act Rule
15c3–1 within 180 days of the
bankruptcy court’s approval of Barclays’
acquisition of Lehman’s assets. In the
event Barclays Capital will not be able
to file a completed application with
respect to the various provisions related
to VaR Models, Barclays Capital will
promptly inform the Commission of
such; and
E:\FR\FM\25SEN1.SGM
25SEN1
mstockstill on PROD1PC66 with NOTICES
55572
Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Notices
(2) Devote the appropriate resources
and personnel to support such alternate
net capital treatment and supervision on
a consolidated basis, including any
additional conditions the Commission
may find to be necessary or appropriate
in the public interest or for the
protection of investors.
In addition, Barclays Capital stated in
its letter that, based on a pro-forma net
capital computation, it would have in
excess of $6.5 billion in Tentative Net
Capital, as defined.
In order to facilitate both a smooth
transition of the Lehman assets and
liabilities to Barclays Capital and
continued oversight of this business, the
Commission believes some additional
conditions are necessary, as follows:
(1) Until such time as the Commission
determines otherwise, Barclays Capital
must maintain at least $6 billion in
Tentative Net Capital;
(2) Until such time as the Commission
determines otherwise, the basic market
risk and credit risk computations for the
positions Barclays Capital acquires from
Lehman must be done using the
modeling infrastructure used by
Lehman prior to the transfer of
Lehman’s assets and liabilities to
Barclays Capital; and
(3) Until such time as the Commission
determines otherwise, the basic market
risk and credit risk computations must
be supervised by individuals who fully
understand the operation of Lehman’s
models (including the inputs and
techniques unique to Lehman’s models)
and the securities that Lehman has been
permitted to model, and that have at
least one year of experience working
with Lehman’s models. According to
Barclays Capital’s letter, it has agreed to
acquire substantially all personnel of
Lehman, such that it should have
employees that meet these requirements
on its staff to continue to meet this
condition for the exemption.
Barclays Capital will need to maintain
Tentative Net Capital of at least $6
billion. By increasing its Tentative Net
Capital to at least $6 billion, Barclays
Capital will significantly improve its
financial position. In addition, the
movement of these accounts from
Lehman to Barclays Capital will further
protect customers by providing for a
seamless transfer of customers’ accounts
from Lehman to a financially sound
broker-dealer. Further, this temporary
relief is specific to the business Barclays
Capital purchases from Lehman, using
models already reviewed and approved
by the Commission, and the
computations will be performed by
persons familiar to Lehman’s models
and processes. This relief will extend
only until the Commission acts on
VerDate Aug<31>2005
17:50 Sep 24, 2008
Jkt 214001
Barclays Capital’s application to
compute market and credit risk capital
charges pursuant to Appendix E, which
Barclays Capital has agreed to submit
within 180 days of the bankruptcy
court’s approval of Barclays Capital’s
acquisition of Lehman’s assets. As such,
because of the special nature of Barclays
Capital’s business, its financial position,
and the safeguards it has established for
the protection of customers’ funds and
securities, the Commission finds that
approval of this request, subject to the
fulfillment by Barclays Capital and its
ultimate holding company Barclays
Group of these representations and
conditions, is appropriate in the public
interest or for the protection of
investors.
Accordingly,
It is ordered, under paragraph (b)(3) of
Rule 15c3–1 (17 CFR 240.15c3–1) under
the Exchange Act, that Barclays Capital
may calculate capital charges for the
positions it purchases from Lehman
Brothers Inc. using the market risk
standards of Appendix E to compute a
deduction for market risk on some or all
of the 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
the credit exposures arising from
transactions in derivatives instruments,
instead of the provision of paragraph
(c)(2)(iv) of Rule 15c3–1, subject to the
fulfillment by Barclays Capital and
Barclays Group of the representations
and conditions set forth above.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8–22503 Filed 9–24–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 28386; File No. 812–13576]
The Reserve Fund, on Behalf of Two of
Its Series, the Primary Fund and the
U.S. Government Fund; Order
Temporarily Suspending Redemption
of Investment Company Shares and
Postponing Payment for Investment
Company Shares Which Have Been
Submitted for Redemption for Which
Payment Has Not Been Made Pursuant
to Section 22(E)(3) of the Investment
Company Act of 1940
September 22, 2008.
The Reserve Fund (the ‘‘Trust’’ or the
‘‘Applicant’’), an open-end management
investment company registered with the
Commission under the Investment
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
Company Act of 1940 (the ‘‘Act’’), has
filed an application on behalf of two of
its series, the Primary Fund and the U.S.
Government Fund (the ‘‘Funds’’), for a
temporary order pursuant to section
22(e)(3) of the Act permitting (a)
suspension of the right of redemption of
their outstanding redeemable securities,
and (b) postponement of payment for
shares which have been submitted for
redemption for which payment has not
been made.
Section 22(e) of the Act provides, in
relevant part, that no registered
investment company shall suspend the
right of redemption, or postpone the
date of payment upon redemption
except ‘‘(3) for such * * * periods as
the Commission may by order permit for
the protection of security holders of the
company.’’
Applicant represents that: (1) The
board, including a majority of directors
that are not interested persons of the
Trust: (a) Determined, on September 17,
2008, that a suspension of redemption is
in the best interest of each Fund’s
shareholders, and (b) determined, on
September 17, 2008, that a
postponement of payment for shares
which have been submitted for
redemption for which payment has not
been made is in the best interest of each
Fund’s shareholders, and (c) will create
a plan for the orderly liquidation of each
Fund’s assets to meet redemption
requests and for the appropriate
payments to each Fund’s shareholders,
including those whose redemption
orders have been received but not yet
paid, which plan is subject to
Commission supervision; (2) the Funds
have suspended sales; and (3) the Funds
will make and keep appropriate records
surrounding these events.
Based on the representations in the
application, including those relating to
the current extraordinary market
conditions, the Commission finds that
the temporary suspension of the right of
redemption and postponement of
payment for shares which have been
submitted for redemption for which
payment has not been made by the
Funds is necessary for the protection of
their security holders.
Accordingly, it is ordered, pursuant to
section 22(e)(3) of the Act, that the
requested exemption from section 22(e)
of the Act is granted until the markets
are liquid to a degree that enables each
Fund to liquidate portfolio securities
without impairing the net asset value of
each Fund, or the Commission, on its
own initiative, rescinds the order
granted herein. This order shall be in
effect as of September 17, 2008.
E:\FR\FM\25SEN1.SGM
25SEN1
]]>Agencies
[Federal Register Volume 73, Number 187 (Thursday, September 25, 2008)]
[Notices]
[Pages 55571-55572]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22503]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 58612]
Order Granting Temporary, Conditional Relief From the Net Capital
Rule for Barclays Capital, Inc.
September 22, 2008.
Barclays Capital, Inc. (``Barclays Capital'') is a broker-dealer
registered with the Securities and Exchange Commission
(``Commission''). Barclays Capital's ultimate holding company is
Barclays Group (``Barclays Group''), which is supervised by the United
Kingdom Financial Services Authority. Barclays Group, through Barclays
Capital, has entered into an agreement to purchase substantially all of
the assets, businesses and personnel of Lehman Brothers Inc.
(``Lehman'').
On November 9, 2005, the Commission issued an Order approving
Lehman's application to use the alternative method of computing net
capital contained in Appendix E (``Appendix E'') to Rule 15c3-1 (17 CFR
240.15c3-1e) under the Securities Exchange Act of 1934 (``Exchange
Act''). In a September 19, 2008 letter to the Commission, Barclays
Capital and Barclays Group applied to the Commission for an exemption
that would permit Barclays Capital, as successor to a substantial
portion of Lehman's assets and liabilities, to continue to use for a
temporary period the alternative method of computing net capital
contained in Appendix E solely when computing capital charges for the
positions it acquires from Lehman.
Pursuant to paragraph (b)(3) of Rule 15c3-1, the Commission may,
upon written application, exempt from the provisions of Rule 15c3-1,
either unconditionally or on specified terms and conditions, any broker
or dealer who satisfies the Commission that, because of the special
nature of its business, its financial position, and the safeguards it
has established for the protection of customers' funds and securities,
it is not necessary in the public interest or for the protection of
investors to subject the particular broker or dealer to the provisions
of Rule 15c3-1.
In its letter, Barclays Capital and Barclays Group have represented
to the Commission that until such time as the Commission acts on
Barclays Capital's application to use the alternate net capital
treatment and supervision on a consolidated basis, Barclays Capital
will:
(1) File a draft application promptly, and cooperate and file with
the Commission a plan to complete all requirements of such application
process (including a timeline) and file a completed application in
accordance with Appendix E to Exchange Act Rule 15c3-1 within 180 days
of the bankruptcy court's approval of Barclays' acquisition of Lehman's
assets. In the event Barclays Capital will not be able to file a
completed application with respect to the various provisions related to
VaR Models, Barclays Capital will promptly inform the Commission of
such; and
[[Page 55572]]
(2) Devote the appropriate resources and personnel to support such
alternate net capital treatment and supervision on a consolidated
basis, including any additional conditions the Commission may find to
be necessary or appropriate in the public interest or for the
protection of investors.
In addition, Barclays Capital stated in its letter that, based on a
pro-forma net capital computation, it would have in excess of $6.5
billion in Tentative Net Capital, as defined.
In order to facilitate both a smooth transition of the Lehman
assets and liabilities to Barclays Capital and continued oversight of
this business, the Commission believes some additional conditions are
necessary, as follows:
(1) Until such time as the Commission determines otherwise,
Barclays Capital must maintain at least $6 billion in Tentative Net
Capital;
(2) Until such time as the Commission determines otherwise, the
basic market risk and credit risk computations for the positions
Barclays Capital acquires from Lehman must be done using the modeling
infrastructure used by Lehman prior to the transfer of Lehman's assets
and liabilities to Barclays Capital; and
(3) Until such time as the Commission determines otherwise, the
basic market risk and credit risk computations must be supervised by
individuals who fully understand the operation of Lehman's models
(including the inputs and techniques unique to Lehman's models) and the
securities that Lehman has been permitted to model, and that have at
least one year of experience working with Lehman's models. According to
Barclays Capital's letter, it has agreed to acquire substantially all
personnel of Lehman, such that it should have employees that meet these
requirements on its staff to continue to meet this condition for the
exemption.
Barclays Capital will need to maintain Tentative Net Capital of at
least $6 billion. By increasing its Tentative Net Capital to at least
$6 billion, Barclays Capital will significantly improve its financial
position. In addition, the movement of these accounts from Lehman to
Barclays Capital will further protect customers by providing for a
seamless transfer of customers' accounts from Lehman to a financially
sound broker-dealer. Further, this temporary relief is specific to the
business Barclays Capital purchases from Lehman, using models already
reviewed and approved by the Commission, and the computations will be
performed by persons familiar to Lehman's models and processes. This
relief will extend only until the Commission acts on Barclays Capital's
application to compute market and credit risk capital charges pursuant
to Appendix E, which Barclays Capital has agreed to submit within 180
days of the bankruptcy court's approval of Barclays Capital's
acquisition of Lehman's assets. As such, because of the special nature
of Barclays Capital's business, its financial position, and the
safeguards it has established for the protection of customers' funds
and securities, the Commission finds that approval of this request,
subject to the fulfillment by Barclays Capital and its ultimate holding
company Barclays Group of these representations and conditions, is
appropriate in the public interest or for the protection of investors.
Accordingly,
It is ordered, under paragraph (b)(3) of Rule 15c3-1 (17 CFR
240.15c3-1) under the Exchange Act, that Barclays Capital may calculate
capital charges for the positions it purchases from Lehman Brothers
Inc. using the market risk standards of Appendix E to compute a
deduction for market risk on some or all of the 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 the credit exposures arising from
transactions in derivatives instruments, instead of the provision of
paragraph (c)(2)(iv) of Rule 15c3-1, subject to the fulfillment by
Barclays Capital and Barclays Group of the representations and
conditions set forth above.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8-22503 Filed 9-24-08; 8:45 am]
BILLING CODE 8010-01-P
