Securities and Exchange Commission October 3, 2007 – Federal Register Recent Federal Regulation Documents

The Securities and Exchange Commission (``Commission'') is adopting rules and rule amendments regarding exemptions from the definitions of ``broker'' and ``dealer'' under the Securities Exchange Act of 1934 (``Exchange Act'') for banks' securities activities. In particular, the Commission is adopting a conditional exemption that will allow banks to effect riskless principal transactions with non- U.S. persons pursuant to Regulation S under the Securities Act of 1933 (``Securities Act''). The Commission also is amending and redesignating an existing exemption from the definition of ``dealer'' for banks' securities lending activities as a conduit lender. In addition, the Commission is conforming a rule that grants a limited exemption from U.S. broker-dealer registration for foreign broker-dealers to the amended definitions of ``broker'' and ``dealer'' under the Exchange Act. Finally, the Commission is withdrawing three rules under the Exchange Act: A rule defining the term ``bank'' for purposes of the Exchange Act's definitions of ``broker'' and ``dealer,'' due to judicial invalidation; a time-limited exemption for banks' securities activities, due to the passage of time; and an exemption from the definitions of ``broker'' and ``dealer'' for savings associations and savings banks, as the exemption no longer necessary in light of subsequent legislation.