SEC established two separate voluntary regulatory programs to supervise broker-dealers (B/D) and their affiliates on a consolidated basis

Program 1

• The program establishes an alternative capital computation method to compute certain market and credit risk capital charges by using internal mathematical models
• This applies to B/Ds that are part of a holding company that manages risks on a group-wide basis and consents to group-wide Commission supervision
• The B/D's holding company and its affiliates subjected to Commission supervision will be referred to as a Consolidated Supervised Entity (CSE)

Program 2

• According to program two, an Investment Bank Holding Company (IBHC) and its affiliates can voluntarily register as a Supervised Investment Bank Holding Company (SIBHC) and be subject to supervision on a group-wide basis
• Registration as an SIBHC is limited to IBHCs that are not affiliated with certain types of banks and that have a substantial presence in the securities markets

Exchange Act § 17(i)

• Text of Statute

Final release 34-49831  2004

• Proposal release 34-48694
• Comment letters

Final release 34-49830  2004

• Proposal release 34-48690
• Comment letters

Broker-Dealers