Capital Requirements for Brokers or Dealers Under the Securities Exchange Act of 1934

SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 240

[Release No. 34-34278; File No. S7-7-94]

RIN 3235-AG14

Capital Requirements for Brokers or Dealers Under the Securities

Exchange Act of 1934

agency: Securities and Exchange Commission (``Commission'').

action: Extension of comment period.

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summary: The Commission is extending the comment period from May 16,

1994 to September 16, 1994 for Securities Exchange Act Release No.

33761 (Mar. 15, 1994) (59 FR 13275), which solicited comment on

amendments to the net capital rule, Rule 15c3-1 under the Securities

Exchange Act of 1934, relating to capital charges for listed options

and related positions.

dates: The requested written data, views, arguments, or comments should

be received on or before September 16, 1994.

addresses: Persons wishing to submit written data, views, arguments, or

comments should file three copies with Jonathan G. Katz, Secretary,

Securities and Exchange Commission, 450 Fifth Street NW., Stop 6-9,

Washington, DC 20549. All written data, views arguments, or comments

should refer to File No. S7-7-94. All comments received will be

available for public inspection and copying in the Commission's Public

Reference Room, 450 Fifth Street NW., Washington, DC 20549.

for further information contact: Michael A. Macchiaroli, Associate

Director, 202/942-0132; Roger G. Coffin, Branch Chief, 202/942-0136;

Timothy H. Thompson, Branch Chief, 202/942-0138; or Karen Hanson

Wellman, Staff Attorney, 202/942-0143; Division of Market Regulation,

Securities and Exchange Commission.

SUPPLEMENTARY INFORMATION:

I. Introduction

On March 15, 1994, the Commission solicited comments on proposed

amendments to the net capital rule relating to capital charges for

listed options and related positions.\1\ In the release, the Commission

also solicited comments on the applicability of the proposed

theoretical pricing haircut methodology to assess the market risk for

over-the-counter (``OTC'') options. The Commission requested that

comments be received on or before May 16, 1994.

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\1\Securities Exchange Act Rel. No. 33761 (Mar. 15, 1994), 59 FR

13275.

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The Commission already has received several letters commenting on

the release. Broker-dealers, however, have requested from the staff of

the Division of Market Regulation an extension of the comment period.

Specifically, industry members have requested additional time to

respond to the Commission's request for comments relating to the net

capital treatment of OTC options.

II. Discussion

The Commission appreciates the complexity of the issues addressed

by the Commission's proposed amendments to the net capital rule,

particularly with respect to OTC options. Therefore, in order to

receive additional serious and well-reasoned responses from the

industry participants, the Commission is extending the comment period

for all commenters to September 16, 1994.

Nevertheless, the Commission is eager to address these important

issues in a timely fashion. Accordingly, the Commission staff will

continue to develop rulemaking in this area while it is awaiting

further responses from the industry.

III. Conclusion

The comment period for responding to Securities Exchange Act

Release No. 33761 is extended until September 16, 1994.

Dated: June 29, 1994.

By the Commission.

Jonathan G. Katz,

Secretary.

[FR Doc. 94-16371 Filed 7-6-94; 8:45 am]

BILLING CODE 8010-01-M