Document ID: SEC-2005-0248-0001
Agency: sec
Document Type: Notice
Title: Applications, hearings, determinations, etc.: Lehman Brothers, Inc.
Posted Date: 2005-11-16T05:00Z

[Federal Register: November 16, 2005 (Volume 70, Number 220)]
[Notices]               
[Page 69614]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16no05-131]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 52753/November 9, 2005]

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

    Lehman Brothers Inc. (``LB''), a broker-dealer registered with the 
Securities and Exchange Commission (``Commission''), and its ultimate 
holding company, Lehman Brothers Holdings Inc. (``LBHI''), have 
indicated their desire to be supervised by the Commission as a 
consolidated supervised entity (``CSE''). LB, 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 LB submitted, the 
Commission has determined that the application meets the requirements 
of Appendix E. The Commission also has determined that LBHI 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 LB 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. E5-6327 Filed 11-15-05; 8:45 am]

BILLING CODE 8010-01-P