

[Federal Register: December 6, 2005 (Volume 70, Number 233)]
[Notices]               
[Page 72682]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06de05-71]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 52857/November 30, 2005]

 
Securities Exchange Act of 1934; Order Regarding Alternative Net 
Capital Computation for Bear, Stearns & Co. Inc., Which Has Elected To 
Be Supervised on a Consolidated Basis

    Bear Stearns & Co., Inc. (``BS&Co.''), a broker-dealer registered 
with the Securities and Exchange Commission (``Commission''), and its 
ultimate holding company, The Bear Stearns Companies Inc. (``TBSCI''), 
have indicated their desire to be supervised by the Commission as a 
consolidated supervised entity (``CSE''). BS&Co., 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 BS&Co. submitted, the 
Commission has determined that the application meets the requirements 
of Appendix E. The Commission also has determined that TBSCI 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 BS&Co. 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.
Jonathan G. Katz,
Secretary.
[FR Doc. E5-6858 Filed 12-5-05; 8:45 am]

BILLING CODE 8010-01-P
