Document ID: SEC-2018-1873-0001
Agency: sec
Document Type: Notice
Title: Orders: Alternative Net Capital Computation for BofAML Securities, Inc.
Posted Date: 2018-12-06T05:00Z

[Federal Register Volume 83, Number 234 (Thursday, December 6, 2018)]
[Notices]
[Page 62930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26404]

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SECURITIES AND EXCHANGE COMMISSION

[Securities Exchange Act of 1934; Release No. 84689/November 29, 2018]

Order Regarding Alternative Net Capital Computation for BofAML 
Securities, Inc.

    BofAML Securities, Inc. (``BofAMLS''), a broker-dealer registered 
with the Securities and Exchange Commission (``Commission''), has 
submitted an application to the Commission for authorization to use the 
market risk standards of Appendix E of Rule 15c3-1 to the Securities 
Exchange Act of 1934 (``Exchange Act'').\1\
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    \1\ See 17 CFR 240.15c3-1e.
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    Based on a review of the application that BofAMLS submitted, 
including an assessment of the firm's financial position, the adequacy 
of the firm's internal risk management controls, and the statistical 
models the firm will use for internal risk management and regulatory 
capital purposes, the Commission has determined that the application 
meets the requirements of paragraphs (a), (b), (d)(1)(i)-(iv), and 
(d)(2) of Appendix E.\2\ The Commission also has determined that Bank 
of America Corporation, BofAMLS's ultimate holding company, is in 
compliance with the terms of its undertakings, as provided to the 
Commission under Appendix E.
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    \2\ See 17 CFR 240.15c3-1e(a); 17 CFR 240.15c3-1e(b); 17 CFR 
240.15c3-1e(d)(i)-(iv); 17 CFR 240.15c3-1e(d)(2).
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    Using the market-risk standards of Appendix E of Rule 15c3-1 should 
help BofAMLS align its supervisory risk management practices and 
regulatory capital requirements more closely, and would adequately 
capture the material risks. As a result, this also should help to 
ensure that integrity of the risk measurement, monitoring and 
management process. 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 
\3\ to the Exchange Act, that BofAMLS may calculate net capital using 
the market risk standards of Appendix E to compute a deduction for 
market risk on some or all its positions instead of the provisions of 
paragraphs (c)(2)(vi) and (c)(2)(vii) of Rule 15c3-1.\4\
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    \3\ See 17 CFR 240.15c3-1(a)(7).
    \4\ See 17 CFR 240.15c3-1(c)(2)(vi); 17 CFR 240.15c3-
1(c)(2)(vii).

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26404 Filed 12-4-18; 8:45 am]
 BILLING CODE 8011-01-P