Subject: File No. S7-08-07
From: Amal El Said
Affiliation: Accounting and Regulatory, Abbey National

June 14, 2007

Commission Members:

There are a few items that we would like to comment on pertaining to the proposed amendments:

1) The proposal states that paragraph (b) of 15c3-3 would be amended so that broker dealers carrying PAB accounts would not be required to maintain physical possession or control of fully paid and excess margin securities carried for PAB accounts so long as written permission is obtained from the PAB accountholder to use such securities in the normal course of business. This amendment contradicts NFA's segregration requirements for FCMs on how these securities can be used. It would seem that a change to the current rule would not effectuate any change.

2) The introduction of a new monthly file to report securities lending activity 2500% seems repetitive given that securities borrow/loan, repo/reverse repo and tentative net capital is readily attainable from FOCUS filings. A suggestion would be to add the calculation to the FOCUS report.

I appreciate the opportunity to provide comments on the proposed amendements. If you have any questions or clarifications to the above issues, please email them to the address provided.