SEC Proposes to Define "Nationally Recognized Statistical Rating Organization"

Washington, DC, December 23, 1997 - The Securities and Exchange Commission recently proposed amendments to its broker-dealer net capital rule (Rule 15c3-1) under the Securities Exchange Act of 1934 to define the term "Nationally Recognized Statistical Rating Organization" for the purposes of that rule. The proposed definition sets forth a list of attributes to be considered by the SEC in designating rating organizations as NRSROs and the process for applying for NRSRO designation. Currently, a rating organization must receive a no-action letter from the SEC Division of Market Regulation to be designated an NRSRO. Comments on the NRSRO proposal are due to the SEC 60 days following the date of publication in the Federal Register.