Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  Selles Ruben
 2. Date of Event Requiring Statement (Month/Day/Year)
11/09/2006		 3. Issuer Name and Ticker or Trading Symbol
ACA Capital Holdings Inc [ACA]
(Last)
(First)
(Middle)
C/O ACA CAPITAL HOLDINGS, INC., 140 BROADWAY		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
EVP Municipal Finance
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

NEW YORK, NY 10005		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Series B Senior Convertible Preferred Stock   (1)   (1) Common Stock 3,371.33 $ (1) D  
Stock Options   (2) 04/08/2012 Common Stock 72,952.8 $ 12.13 D  
Stock Options   (3) 11/09/2014 Common Stock 26,884.11 $ 10.38 D  
Stock Options   (4) 02/09/2016 Common Stock 2,571.43 $ 12.66 D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
Selles Ruben
C/O ACA CAPITAL HOLDINGS, INC.
140 BROADWAY
NEW YORK, NY 10005		       EVP Municipal Finance  

Signatures

/s/ Stacey Tyson, Attorney-In-Fact 11/09/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The Series B Senior Convertible Preferred Stock has no expiration date and, upon the closing of the initial public offering of the issuer, will convert into shares of the issuer's common stock on a 6-for-1 basis. The number of shares reported reflects the 6-for-1 conversion.
(2) These stock options are fully vested.
(3) These stock options are fully vested.
(4) These stock options are fully vested.
 
Remarks:
Exhibit List:    Exhibit 24:    Power of Attorney

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