Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Notices 55571 

13 15 U.S.C. 78k–1. 

14 17 CFR 240.608. 

15 17 CFR 200.30–3(a)(27). 

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: Closed Meeting. 

PLACE: 100 F Street, NE., Washington, 

DC. 

DATE AND TIME OF PREVIOUSLY ANNOUNCED

MEETING: Tuesday, September 23, 2008 

at 10 a.m. 

CHANGE IN THE MEETING: 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. 

Dated: September 22, 2008. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–22546 Filed 9–24–08; 8:45 am] 

BILLING CODE 8010–01–P 

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] 

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 

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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 

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 

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. 

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