Federal Register: December 29, 2004 (Volume 69, Number 249)

DOCID: FR Doc E4-3875

SECURITIES AND EXCHANGE COMMISSION

Securities and Exchange Commission

DOCUMENT ID: [Release No. 50925]

NOTICE: NOTICES

ACTION: Applications, hearings, determinations, etc.:

SUBJECT CATEGORY:

Securities Exchange Act of 1934; Order Regarding Alternative Net Capital Computation for Merrill Lynch, Pierce, Fenner & Smith Incorporated, Which Has Elected to be Supervised on a Consolidated Basis

DOCUMENT SUMMARY:

December 23, 2004.

Merrill Lynch, Pierce, Fenner & Smith Incorporated (``MLPF&S''), a brokerdealer registered with the Securities and Exchange Commission (``Commission''), and its ultimate holding company, Merrill Lynch & Co., Inc., (``ML & Co.''), have indicated their desire to be supervised by the Commission as a consolidated supervised entity (``CSE''). MLPF&S, 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 15c31 (17 CFR 240.15c31e) to the Securities Exchange Act of 1934 (``Exchange Act'').

Based on a review of the application that MLPF&S submitted, the Commission has determined that the application meets the requirements of Appendix E. The Commission also has determined that ML & Co. 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.
[[Page 78060]]

Accordingly,

It is ordered under paragraph (a)(7) of Rule 15c31 (17 CFR 240.15c31) to the Exchange Act, that MLPF&S 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 15c31, 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 15c31.

By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E43875 Filed 122804; 8:45 am]
BILLING CODE 801001P

SUMMARY:

Merrill Lynch, Pierce, Fenner & Smith, Inc.,

DOCUMENT BODY 2:

December 23, 2004.

Merrill Lynch, Pierce, Fenner & Smith Incorporated (``MLPF&S''), a brokerdealer registered with the Securities and Exchange Commission (``Commission''), and its ultimate holding company, Merrill Lynch & Co., Inc., (``ML & Co.''), have indicated their desire to be supervised by the Commission as a consolidated supervised entity (``CSE''). MLPF&S, 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 15c31 (17 CFR 240.15c31e) to the Securities Exchange Act of 1934 (``Exchange Act'').

Based on a review of the application that MLPF&S submitted, the Commission has determined that the application meets the requirements of Appendix E. The Commission also has determined that ML & Co. 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.
[[Page 78060]]

Accordingly,

It is ordered under paragraph (a)(7) of Rule 15c31 (17 CFR 240.15c31) to the Exchange Act, that MLPF&S 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 15c31, 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 15c31.

By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E43875 Filed 122804; 8:45 am]
BILLING CODE 801001P