66828 Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices 

18 15 U.S.C. 78s(b)(3)(A)(iii). 

19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

20 17 CFR 240.19b–4(f)(6). 

21 17 CFR 240.19b–4(f)(6)(iii). 

22For purposes only of waiving the 30-day 

operative delay, the Commission also has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

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)(iii) of the Act 18 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.19

A proposed rule change filed 

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

Act 20 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 21

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. ISE has requested that 

the Commission waive the 30-day 

operative delay contained in Rule 19b– 

4(f)(6)(iii). The Commission believes 

that waiver of the 30-day operative 

delay is consistent with the protection 

of investors and the public interest. The 

proposal raises no novel issues. As the 

Exchange notes, other options markets 

require their market makers to a 25% 

restriction for trading in non-appointed 

classes. Further, pursuant to the 

proposal, PMMs’ obligation to their 

appointed classes would remain 

unchanged. Accordingly, the 

Commission waives the operative delay 

and designates the proposed rule change 

operative upon filing.22

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– 

ISE–2018–98 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–ISE–2018–98. 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 

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

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. 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–ISE–2018–98 and should be 

submitted on or before January 17, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28003 Filed 12–26–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84855; File No. SR–FINRA– 

2018–041] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Make Technical 

Revisions and One Minor Correction to 

the Supplemental Statement of Income 

Required To Be Filed Pursuant to 

FINRA Rule 4524 (Supplemental 

FOCUS Information) 

December 19, 2018. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

12, 2018, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. 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 

FINRA is proposing a rule change to 

make technical revisions and one minor 

correction to the Supplemental 

Statement of Income (‘‘SSOI’’) required 

to be filed pursuant to FINRA Rule 4524 

(Supplemental FOCUS Information). 

The technical revisions would conform 

the SSOI with amendments to SEC Form 

X–17A–5 (the ‘‘FOCUS Report’’) that the 

SEC has adopted. 

The text of the proposed rule change 

is available on FINRA’s website at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 


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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices 66829 

4See Regulatory Notice 12–11 (Supplemental 

FOCUS Information) (February 2012) (announcing 

the SEC’s approval of Rule 4524 and the SSOI). See 

also Securities Exchange Act Release No. 66364 

(February 9, 2012), 77 FR 8938 (February 15, 2012) 

(Notice of Filing of Amendment No. 2 and Order 

Granting Accelerated Approval of a Proposed Rule 

Change, as Modified by Amendment No. 2, 

Adopting FINRA Rule 4524 (Supplemental FOCUS 

Information) and Proposed Supplementary 

Schedule to the Statement of Income (Loss) Page of 

FOCUS Reports; File No. SR–FINRA–2011–064) 

and Securities Exchange Act Release No. 67257 

(June 26, 2012), 77 FR 39313 (July 2, 2012) (Notice 

of Filing and Immediate Effectiveness of Proposed 

Rule Change To Make Non-Substantive Technical 

Changes to the Supplemental Statement of Income 

Required To Be Filed Pursuant to FINRA Rule 4524 

(Supplemental FOCUS Information); File No. SR– 

FINRA–2012–033). 

5See Securities Exchange Act Release No. 83875 

(August 17, 2018), 83 FR 50148 (October 4, 2018) 

(Final Rule: Disclosure Update and Simplification) 

(the SEC’s Adopting Release). To facilitate members 

in their financial reporting obligations, FINRA 

issued Regulatory Notice 18–38 to announce 

updates to the FINRA eFOCUS System designed to 

correspond with the new FOCUS requirements and 

to inform members of the effective date of the new 

requirements pursuant to specified relief granted by 

the staff of the SEC Division of Trading and 

Markets. See Regulatory Notice 18–38 (Financial 

Reporting Requirements) (November 2018); see also 

letter from Michael A. Macchiaroli, Associate 

Director, Division of Trading and Markets, SEC, to 

Ann Duguid, Senior Director, FINRA, dated 

(October 29, 2018). 

6See, for example, the SEC’s Adopting Release at 

83 FR 50179, 50182 and 50183. 

7See the SEC’s Adopting Release at 83 FR 50150. 

See also Section 72002 of the Fixing America’s 

Surface Transportation Act, Public Law 114–94, 29 

Stat. 1312 (2015) (mandating that the SEC revise 

Regulation S–K to eliminate provisions that are 

duplicative, overlapping, outdated, or unnecessary). 

8The SSOI as amended pursuant to the proposed 

rule change is included as Exhibit 3 to this filing. 

9Specifically, FINRA proposes to delete the extra 

period that appears at the end of the instructions 

to Line 11022 (Aggregate amount if less than the 

greater of $5,000 or 5% of Total Revenue). 

10 15 U.S.C. 78o–3(b)(6). 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. FINRA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

FINRA Rule 4524 (Supplemental 

FOCUS Information) requires each 

member, as FINRA shall designate, to 

file such additional financial or 

operational schedules or reports as 

FINRA may deem necessary or 

appropriate for the protection of 

investors or in the public interest as a 

supplement to filing FOCUS reports. 

FINRA implemented the SSOI pursuant 

to Rule 4524 in 2012.4

On August 17, 2018, the SEC adopted 

amendments that simplify and update, 

among other rules and forms, certain of 

the FOCUS reporting requirements for 

brokers and dealers and make changes 

to the annual audit requirements.5 The 

SEC’s amendments update Parts II, IIA, 

and IIB of the FOCUS Report to reflect 

updated U.S. Generally Accepted 

Accounting Principles (‘‘U.S. GAAP’’) 

requirements.6 More specifically, the 

amendments revise the Statement of 

Financial Condition and the Statement 

of Income in the FOCUS Reports to 

include new line items added for the 

reporting of comprehensive income or 

loss, including other comprehensive 

income and accumulated other 

comprehensive income or loss. The 

amendments update line items to 

eliminate references to extraordinary 

gains or losses and the cumulative effect 

of changes in accounting principles. 

FINRA is proposing technical 

revisions that would conform the SSOI 

with the SEC’s amendments to the 

FOCUS Report. FINRA believes that 

conforming the SSOI with the FOCUS 

Report is consistent with the 

Commission’s goal of eliminating 

redundant, duplicative, overlapping, 

outdated, or superseded requirements,7

without significantly altering the 

information available to regulators. 

Because the SSOI is intended to provide 

more detailed information about a 

member’s revenues and expenses 

reported on the FOCUS Report, making 

the two forms consistent would enable 

members to file the same information on 

both forms with respect to 

comprehensive income, extraordinary 

items, and the effect of changes in 

accounting principles. As such, the 

proposed revisions should create clarity 

and reduce burdens for members, 

thereby assisting members in their 

financial reporting obligations and 

facilitating investor protection. 

Specifically, FINRA proposes to make 

the following changes to the SSOI: 8

• Delete SSOI line 14224 

(‘‘Extraordinary gains (losses)’’) and 

SSOI line 14225 (‘‘Cumulative effect of 

changes in accounting principles’’) to 

conform with the elimination of 

references to extraordinary gains or 

losses and to the cumulative effect of 

changes in accounting principles in the 

FOCUS Report; 

• delete the phrase ‘‘and 

extraordinary item’’ from SSOI line 

14230 (‘‘Net income (loss) after Federal 

income taxes and extraordinary item’’), 

again to conform with the elimination of 

references to extraordinary gains or 

losses in the FOCUS Report; 

• add new SSOI line 14226 (‘‘Other 

comprehensive income (loss)’’) and new 

SSOI line 14228 (‘‘Comprehensive 

income (loss)’’) to conform with the 

addition of correspondingly titled new 

lines in the FOCUS Report; 

• amend the title of Section 19 of the 

SSOI, and the associated header that 

precedes Section 19, to read ‘‘Net 

Income/Comprehensive Income’’ to 

conform with and correspond to the 

reporting of comprehensive income in 

the FOCUS Report; and 

• amend the General Instructions and 

the Specific Instructions to the SSOI to 

conform with the above deletions, 

additions and amendments, as 

appropriate, with respect to SSOI lines 

14224, 14225, 14226, 14228 and 14230, 

and the header to and title of Section 19. 

In addition, FINRA proposes to make 

a minor correction to Section 3 

(Revenue from Sale of Insurance Based 

Products) under the Specific 

Instructions to the SSOI.9

FINRA has filed the proposed rule 

change for immediate effectiveness. 

FINRA is proposing that the 

implementation date of the proposed 

rule change will be March 31, 2019, for 

SSOI filings that report on the period 

January 1 through March 31, 2019, and 

are due by April 26, 2019. Thus, all 

SSOIs filed on or after March 31, 2019 

would reflect the proposed rule change. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,10 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

proposed rule change would further the 

purposes of the Act because, as 

discussed in Section II.A.1. of this 

filing, consistent with the Commission’s 

goal of eliminating redundant, 

duplicative, overlapping, outdated, or 

superseded requirements, without 

significantly altering the information 

available to regulators, the proposed 

rule change, by conforming the SSOI 

with the FOCUS Report, would create 

clarity and reduce burdens for members, 

thereby assisting members in their 

financial reporting obligations and 

facilitating investor protection. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. FINRA 


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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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