FOR IMMEDIATE RELEASE                          97-112


         SEC TO CONSIDER FOUR ITEMS AT AN OPEN MEETING


      Washington, D.C., December 17, 1997 -- The  Securities

and  Exchange Commission will consider four items at an open

meeting  conducted under the Government in the Sunshine  Act

on  December 17, at 10:00 a.m.  The meeting will be held  in

Room  1C30,  at the Commission's headquarters building,  450

Fifth   Street,  N.W.,  Washington,  D.C.   The  items   for

discussion are:


          -    whether to propose Rules 3a12-12, 3a12-13, 3b-
          12,  3b-13,  3b-14, 3b-15, 3b-16, 15b9-2,  15c1-9,
          15c3-4,  and 17a-5A under the Securities  Exchange
          Act  of  1934  (Exchange Act)  and  amendments  to
          Exchange  Act Rules 8c-1, 15b1-1, 15c2-1,  15c3-1,
          15c3-3,  17a-3,  17a-4, 17a-11, and  Form  X-17A-5
          (FOCUS  report).   The  proposed  rules  and  rule
          amendments would tailor capital, margin, and other
          broker-dealer regulatory requirements to  a  class
          of  registered  dealers,  called  OTC  derivatives
          dealers,   active  in  OTC  derivatives   markets.
          Registration as an OTC derivatives dealer would be
          alternative  to registration as a fully  regulated
          broker-dealer,  and  would be  available  only  to
          entities  acting  primarily as  counterparties  in
          privately negotiated OTC derivatives transactions.

          -     whether  to issue a concept release  seeking
          comment  on alternatives to the current method  of
          calculating  net capital requirements pursuant  to
          Rule  15c3-1  under the Exchange Act  for  broker-
          dealers,  including  whether  statistical   models
          should   be   used   to  calculate   net   capital
          requirements.    As  part  of   its   study,   the
          Commission  it  considering the  extent  to  which
          statistical  models should be used in setting  the
          capital    requirements   for   a   broker-dealer.
          Accordingly, the Commission is posing a number  of
          questions  on  this subject as well as  soliciting
          views   on   other   possible   alternatives   for
          establishing net capital requirements.

          -     whether to propose amendments to Rule 15c3-1
          under  the  Exchange  Act  regarding  net  capital
          requirements for broker-dealers.  When calculating
          the   value  of  their  assets  for  net   capital
          purposes,  broker-dealers must reduce  the  market
          value  of  the  securities  they  own  by  certain
          percentages,  or  haircuts.  The  rule  amendments
          would  alter the haircuts taken by broker-dealers,
          for  certain interest rate instruments, including:
          government     securities;    investment     grade
          nonconvertible debt securities; certain  mortgage-
          backed  securities; money market instruments;  and
          debt-related derivatives instruments.

          -     whether to propose amendments to Rule 15c3-1
          to   define   the   term  "nationally   recognized
          statistical  rating  organization"  (NRSRO).   The
          proposed   definition  sets  forth   a   list   of
          attributes  to be considered by the Commission  in
          designating rating organizations as NRSROs and the
          process for applying for NRSRO designation.



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