66830 Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C.78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

believes that, by conforming the SSOI 

with the FOCUS Report, the proposed 

rule change is consistent with the 

Commission’s goal of eliminating 

redundant, duplicative, overlapping, 

outdated, or superseded requirements 

and does not significantly alter the 

information available to regulators. As 

such, FINRA believes the proposed rule 

change will create clarity and reduce 

burdens for members, thereby reducing 

burdens on the marketplace and 

facilitating investor protection. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 13 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 14

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. FINRA has asked the 

Commission to waive the 30-day 

operative delay so that FINRA may 

implement the proposed rule change to 

more closely coincide with the effective 

date of the Commission’s amendments 

to the FOCUS Report. The Commission 

does not believe that the proposed 

change presents any new or novel 

issues, and that making the SSOI 

consistent with the FOCUS Report will 

reduce burdens for FINRA members by 

enabling them to file the same 

information on both forms with respect 

to comprehensive income, extraordinary 

items, and the effect of changes in 

accounting principles, thereby assisting 

members in their financial reporting 

obligations and facilitating investor 

protection. Accordingly, waiver of the 

operative delay is consistent with the 

protection of investors and the public 

interest. Therefore, the Commission 

hereby waives the operative delay and 

designates the proposal operative upon 

filing.15

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

FINRA–2018–041 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–FINRA–2018–041. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of 

FINRA. All comments received will be 

posted without change. Persons 

submitting comments are cautioned that 

we do not redact or edit personal 

identifying information from comment 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–FINRA– 

2018–041 and should be submitted on 

or before January 17, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28005 Filed 12–26–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84866; File No. SR–CHX– 

2018–08] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change to Amend 

Article 14 of the Rules of the Exchange 

Related to Arbitration Proceedings 

December 19, 2018. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19bd–4 thereunder,3

notice is hereby given that, on December 

7, 2018, the Chicago Stock Exchange, 

Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Article 14 of the rules of the Exchange 

(‘‘Rules’’) to adopt arbitration provisions 

that are substantively similar to Rule 12 

of the rules of NYSE National, Inc. 

(‘‘NYSE National’’), a national securities 


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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices 66831 

4See Exchange Act Release No. 83635 (July 13, 

2018), 83 FR 34182 (July 19, 2018) (SR–CHX–2018– 

004); see also Exchange Act Release No. 83303 (May 

22, 2018), 83 FR 24517 (May 29, 2018) (SR–CHX– 

2018–004). 

5The Exchange has four registered national 

securities exchange affiliates: New York Stock 

Exchange LLC (‘‘NYSE’’), NYSE Arca, Inc. (‘‘NYSE 

Arca’’), NYSE National and NYSE America LLC 

(‘‘NYSE American’’ and together with the Exchange, 

NYSE, NYSE Arca, and NYSE National, the ‘‘NYSE 

Group Exchanges’’). 

6The Exchange proposes to file a request that the 

Commission exercise its authority under Section 36 

of the Act and Rule 0–12 thereunder and grant the 

Exchange an exemption from the rule filing 

requirements of Section 19(b) of the Act for changes 

to Exchange rules that will be effected solely by 

virtue of changes to FINRA rules—including FINRA 

rules designated as NASD rules—that are crossreferenced in those Exchange rules. This 

application would address all FINRA rules that the 

Exchange proposes to cross reference. 

7As of the time of this filing, there are no ongoing 

arbitration proceedings pursuant to current Article 

14 nor has the Exchange been notified by any 

person of an intent to begin arbitration proceedings 

pursuant to current Article 14. 

exchange and affiliate of CHX, and Rule 

12.110 of the rules of the Investors 

Exchange LLC (‘‘IEX’’). The proposed 

rule change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

(1) Background 

The Exchange and its direct parent, 

CHX Holdings, Inc., were recently 

acquired by NYSE Group, Inc.4 As a 

result of its acquisition, the Exchange 

became part of a corporate family 

including five separate registered 

national securities exchanges.5

Following the acquisition, the Exchange 

has continued to operate as a separate 

self-regulatory organization and 

continues to have rules, membership 

rosters and listings distinct from the 

rules, membership rosters and listings of 

the other NYSE Group Exchanges. 

As part of its ongoing post-acquisition 

transition, the Exchange anticipates 

shortly entering into a Regulatory 

Services Agreement (‘‘RSA’’) with the 

Financial Industry Regulatory Authority 

(‘‘FINRA’’) pursuant to which FINRA 

will perform certain regulatory 

functions of the Exchange on behalf of 

the Exchange, such as conducting 

arbitration proceedings. 

To facilitate implementation of the 

RSA between the Exchange and FINRA, 

the Exchange proposes to amend its 

current rules related to arbitration 

proceedings under Article 14 to 

incorporate FINRA arbitration rules by 

reference.6 Accordingly, the Exchange 

proposes to amend current Article 14 to 

be substantively similar to NYSE 

National Rule 12, as described below. 

(2) Proposed Rule Change 

Current Article 14 (Arbitration) 

provides rules related to the Exchange’s 

arbitration program.7 Specifically, 

current Article 14, Rule 1 (Arbitration of 

Participant Controversies) includes 

general provisions on the arbitration 

program, including the jurisdiction, 

how the arbitration panel is to be 

selected and the effect of any decision 

of the arbitration panel. Current Article 

14, Rule 2 (Arbitration Rules) includes 

arbitration procedure requirements and 

the schedule of arbitration related fees. 

Proposed Article 14, Rule 1(a) would 

be renamed ‘‘Arbitration’’ and 

incorporate by reference the Rule 12000 

Series and the Rule 13000 Series of the 

FINRA Manual (Code of Arbitration 

Procedure for Customer Disputes and 

Code of Arbitration Procedure for 

Industry Disputes) (the ‘‘FINRA Codes 

of Arbitration’’). As proposed, 

definitions in the FINRA Codes of 

Arbitration would have the same 

meaning as that prescribed therein, and 

procedures contained in the FINRA 

Codes of Arbitration would have the 

same application as towards Exchange 

arbitrations. 

Proposed Rule 1(b) would set forth 

jurisdiction and would provide that any 

dispute, claim, or controversy arising 

out of or in connection with the 

business of any Participant, or arising 

out of the employment or termination of 

employment of associated person(s) 

with any Participant may be arbitrated 

under this proposed Rule except that: 

(1) A dispute, claim, or controversy 

alleging employment discrimination 

(including a sexual harassment claim) in 

violation of a statute may only be 

arbitrated if the parties have agreed to 

arbitrate it after the dispute arose; and 

(2) any type of dispute, claim, or 

controversy that is not permitted to be 

arbitrated under the FINRA Codes of 

Arbitration (such as class action claims) 

shall not be eligible for arbitration under 

this proposed Rule. 

Proposed Rule 1(c) would provide 

that the requirements of FINRA Rule 

2268, which would be incorporated by 

reference, would apply to predispute 

arbitration agreements between 

Participants and their customers. 

Proposed Rule 1(d) would provide 

that if any matter comes to the attention 

of an arbitrator during and in 

connection with the arbitrator’s 

participation in a proceeding, either 

from the record of the proceeding or 

from material or communications 

related to the proceeding, that the 

arbitrator has reason to believe may 

constitute a violation of the Exchange’s 

Rules or the federal securities laws, the 

arbitrator may initiate a referral of the 

matter to the Exchange for disciplinary 

investigation; provided, however, that 

any such referral should only be 

initiated by an arbitrator after the matter 

before him has been settled or otherwise 

disposed of, or after an award finally 

disposing of the matter has been 

rendered pursuant to Rule 12904 or 

13904 (as applicable) of the FINRA 

Codes of Arbitration. 

Proposed Rule 1(e) would provide 

that any Participant, or person 

associated with a Participant, who fails 

to honor an award of arbitrators 

appointed in accordance with this 

proposed Rule shall be subject to 

disciplinary proceedings in accordance 

with Article 12 (Disciplinary Matters 

and Trial Proceedings). 

Finally, proposed Rule 1(f) would 

provide that the submission of any 

matter to arbitration under this 

proposed Rule shall in no way limit or 

preclude any right, action or 

determination by the Exchange which it 

would otherwise be authorized to adopt, 

administer or enforce. 

Proposed Article 14, Rules 1(a)–(c), (e) 

and (f) are based on NYSE National 

Rules 12(a)–(c), (e) and (f), and proposed 

Article 14, Rules 1(a)–(f) are based on 

IEX Rules 12.110(a)–(f), with nonsubstantive differences to use Exchange 

terminology. 

Because proposed Article 14, Rule 1 

would set forth the Exchange’s rules 

relating to arbitration, the Exchange 

proposes to delete the current rules 

under Article 14 in their entirety. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 


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66832 Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A)(iii). 

10 17 CFR 240.19b–4(f)(6). 

11 15 U.S.C. 78s(b)(2)(B). 12 17 CFR 200.30–3(a)(12). 

Section 6(b)(5) of the Exchange Act,8 in 

that it is designed to prevent fraudulent 

and manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. 

Specifically, the Exchange believes 

that proposed Article 14, Rule 1 relating 

to arbitration would remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system because it 

would update the Exchange’s rules 

governing arbitration to reflect that any 

such arbitrations would be processed by 

FINRA pursuant to the FINRA Codes of 

Arbitration. The proposed rule is not 

novel as it is based on NYSE National 

Rule 12 and IEX Rule 12.110. The 

Exchange believes the proposed rule 

change fosters uniformity and 

consistency in arbitration proceedings 

and, as a result, would enhance the 

administration and operation of the 

arbitration process, thereby protecting 

investors and the public interest. The 

proposed rule change would therefore 

promote consistency among the 

Exchange and other SROs, such as 

NYSE National and IEX, and make its 

rules easier to navigate for the public, 

the Commission, and members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Exchange Act. 

The proposed rule change is not 

intended to address competitive issues 

but rather is concerned solely with the 

Exchange’s arbitration program. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 9 and Rule 

19b–4(f)(6) thereunder.10 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 11 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CHX–2018–08 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CHX–2018–08. This file 

number should be included in the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing will also be available for 

inspection and copying at the 

Exchange’s principal office and on its 

internet website at www.nyse.com. All 

comments received will be posted 

without change. Persons submitting 

comments are cautioned that we do not 

redact or edit personal identifying 

information from comment submissions. 

You should submit only information 

that you wish to make available 

publicly. 

All submissions should refer to File 

Number SR–CHX–2018–08 and should 

be submitted on or before January 17, 

2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–27987 Filed 12–26–18; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 10632] 

Determination by the Secretary of 

State Relating to Iran Sanctions 

The Secretary of State determined on 

November 3, 2018, pursuant to Section 

1245(d)(4)(D) of the National Defense 

Authorization Act for Fiscal Year 2012 

(NDAA), (Pub. L. 112–81), as amended, 

that as of November 3, 2018, each of the 

following jurisdictions have 

significantly reduced the volume of 

their crude oil purchases from Iran: 

China, Greece, India, Italy, Japan, South 

Korea, Taiwan, and Turkey. 

Kent D. Logsdon, 

Principal Deputy Assistant Secretary, Bureau 

of Energy Resources, U.S. Department of 

State. 

[FR Doc. 2018–28093 Filed 12–26–18; 8:45 am] 

BILLING CODE 4710–AE–P 


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