Federal Register / Vol. 83, No. 124 / Wednesday, June 27, 2018 / Notices 30203 

1 15 U.S.C. 78s(b)(7). 

2 17 CFR 240.19b–7. 

3See letter from Matthew Kulkin, Director CFTC, 

to Carol A. Wooding, General Counsel, NFA 

(‘‘Letter’’). 

4 15 U.S.C. 78o–3(k). 

5 15 U.S.C. 78o(b)(11). 

Service request, the request’s acceptance 

date, and the authority cited by the 

Postal Service for each request. For each 

request, the Commission appoints an 

officer of the Commission to represent 

the interests of the general public in the 

proceeding, pursuant to 39 U.S.C. 505 

(Public Representative). Section II also 

establishes comment deadline(s) 

pertaining to each request. 

The public portions of the Postal 

Service’s request(s) can be accessed via 

the Commission’s website (http://

www.prc.gov). Non-public portions of 

the Postal Service’s request(s), if any, 

can be accessed through compliance 

with the requirements of 39 CFR 

3007.40. 

The Commission invites comments on 

whether the Postal Service’s request(s) 

in the captioned docket(s) are consistent 

with the policies of title 39. For 

request(s) that the Postal Service states 

concern market dominant product(s), 

applicable statutory and regulatory 

requirements include 39 U.S.C. 3622, 39 

U.S.C. 3642, 39 CFR part 3010, and 39 

CFR part 3020, subpart B. For request(s) 

that the Postal Service states concern 

competitive product(s), applicable 

statutory and regulatory requirements 

include 39 U.S.C. 3632, 39 U.S.C. 3633, 

39 U.S.C. 3642, 39 CFR part 3015, and 

39 CFR part 3020, subpart B. Comment 

deadline(s) for each request appear in 

section II. 

II. Docketed Proceeding(s) 

1. Docket No(s).: MC2018–184 and 

CP2018–258; Filing Title: USPS Request 

to Add Priority Mail Contract 451 to 

Competitive Product List and Notice of 

Filing Materials Under Seal; Filing 

Acceptance Date: June 21, 2018; Filing 

Authority: 39 U.S.C. 3642 and 39 CFR 

3020.30 et seq.; Public Representative: 

Lawrence Fenster; Comments Due: June 

29, 2018. 

2. Docket No(s).: MC2018–185 and 

CP2018–259; Filing Title: USPS Request 

to Add Priority Mail Contract 452 to 

Competitive Product List and Notice of 

Filing Materials Under Seal; Filing 

Acceptance Date: June 21, 2018; Filing 

Authority: 39 U.S.C. 3642 and 39 CFR 

3020.30 et seq.; Public Representative: 

Lawrence Fenster; Comments Due: June 

29, 2018. 

This notice will be published in the 

Federal Register. 

Stacy L. Ruble, 

Secretary. 

[FR Doc. 2018–13819 Filed 6–26–18; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83490; File No. SR–NFA– 

2018–02] 

Self-Regulatory Organizations; 

National Futures Association; Notice 

of Filing and Immediate Effectiveness 

of Proposed Change to the Interpretive 

Notice to NFA Compliance Rule 2–9: 

Enhanced Supervisory Requirements: 

Requiring NFA Members To Maintain a 

Record of All Electronic Written 

Communications 

June 21, 2018. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’),1 and Rule 19b–7 

under the Exchange Act,2 notice is 

hereby given that on June 12, 2018, 

National Futures Association (‘‘NFA’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change described in 

Items I, II, and III below, which Items 

have been prepared by NFA. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

On November 27, 2017, NFA filed this 

proposed rule change with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and requested 

that the CFTC make a determination 

that review of the proposed rule change 

of NFA is not necessary. By letter dated 

December 11, 2017, the CFTC notified 

NFA of its determination not to review 

the proposed rule change.3

The text of the proposed rule change 

is available at the self-regulatory 

organization’s office, on the NFA’s 

website at www.nfa.futures.org, and at 

the SEC’s Public Reference Room. 

I. Self-Regulatory Organization’s 

Description and Text of the Proposed 

Rule Change 

NFA’s Interpretive Notice to NFA 

Compliance Rule 2–9 entitled ‘‘NFA 

Compliance Rule 2–9: Enhanced 

Supervisory Requirements’’ 

(‘‘Interpretive Notice’’) requires NFA 

Member (‘‘Member’’) firms that meet 

certain criteria identified by NFA’s 

Board of Directors (‘‘Board’’) to comply 

with specific enhanced supervisory 

requirements (‘‘Requirements’’) that are 

designed to prevent abusive sales 

practices. NFA’s Board is amending the 

Interpretive Notice to require all 

Members subject to the Requirements to 

maintain a record of all electronic 

written communications between 

associated persons (‘‘APs’’) and 

customers or potential customers, 

including but not limited to, email, text 

messages, instant messages, and any 

other communication that occurs in a 

chat room or on any social media 

platform. The proposed rule change also 

requires all Member firms subject to the 

Requirements of the Interpretive Notice 

to prepare a catalog of electronic written 

communications and for APs to 

maintain a log of those written 

electronic communications. The text of 

the proposed rule change to the 

Interpretive Notice is found in Exhibit 4. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for the Proposed Rule 

Change 

In its filing with the Commission, 

NFA 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 these statements 

may be examined at the places specified 

in Item IV below. NFA 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 

Section 15A(k) of the Exchange Act 4

makes NFA a national securities 

association for the limited purpose of 

regulating the activities of NFA 

Members who are registered as brokers 

or dealers in security futures products 

under Section 15(b)(11) of the Exchange 

Act.5 NFA’s Interpretive Notice applies 

to all NFA Members who meet the 

criteria in the Interpretive Notice, 

including those that are registered as 

security futures brokers or dealers under 

Section 15(b)(11) of the Exchange Act. 

NFA’s Interpretive Notice to 

Compliance Rule 2–9(b) authorizes 

NFA’s Board to require Members to 

adopt certain enhanced supervisory 

requirements based upon the regulatory 

background of either its APs or 

principals. The Interpretive Notice is 

designed to, among other things, 

minimize the likelihood of a Member 

engaging in deceptive sales practices. 

One of the more important 

Requirements with respect to 

minimizing sales practice problems is 

the requirement that firms make audio 


daltland on DSKBBV9HB2PROD with NOTICES
30204 Federal Register / Vol. 83, No. 124 / Wednesday, June 27, 2018 / Notices 

6 15 U.S.C. 78o–3(k). 

7 17 CFR 1.35. 

8See Letter, Supra note 3. 

9 15 U.S.C. 78s(b)(1). 

recordings of all telephone 

conversations between APs and 

customers. At the time this Interpretive 

Notice was adopted, telephone 

communications were the most common 

method that APs used to solicit 

customers. However, since that time, 

other electronic written 

communications, such as text or instant 

messages, have become one of the 

primary methods of communication 

between APs and customers. NFA’s 

Interpretive Notice, however, does not 

specifically require a Member firm 

subject to the Requirements to maintain 

a record of electronic written 

communications, prepare a catalog of 

electronic written communications, or 

require its APs to maintain a log of those 

communications. NFA relies on the 

catalog of communications and the AP 

sales solicitation logs when examining a 

Member for compliance with the 

Requirements. 

Given the popularity of electronic 

written communications, NFA’s Board 

is amending the Interpretive Notice to 

explicitly state that all Members subject 

to the Requirements are required to 

maintain a record of all electronic 

written communications, including but 

not limited to, emails, text messages, 

instant messages, and any other 

communication that occurs in a chat 

room or on any social media platform. 

NFA’s Board is also amending the 

Interpretive Notice to require Member 

firms subject to the Requirements to 

prepare a catalog of electronic written 

communications and require APs to 

maintain a log of those written 

electronic communications. This 

modification to the Interpretive Notice 

merely parallels the current cataloging 

and AP log requirement for telephone 

sales solicitations and ensures that, for 

firms subject to the Requirements, all 

sales solicitations—regardless of the 

method by which they occur—are 

maintained, cataloged, and logged by 

the firm’s APs. 

Amendments to the Interpretive 

Notice were previously filed with the 

SEC in SR–NFA–2002–07, Exchange Act 

Release No. 34–47147 (Jan. 9, 2003), 68 

FR 2383 (Jan. 16, 2003); SR–NFA–2003– 

01, Exchange Act Release No. 34–47533 

(Mar. 19, 2003), 68 FR 14733 (March 26, 

2003); SR–NFA–2005–01, Exchange Act 

Release No. 34–52808 (Nov. 18, 2005), 

70 FR 71347 (Nov. 28, 2005); SR–NFA– 

2006–01 Exchange Act Release No. 34– 

53568 (Mar. 29, 2006), 71 FR 16850 

(Apr. 4, 2006); SR–NFA–2007–03, 

Exchange Act Release No. 34–55710 

(May 4, 2007), 72 FR 26858 (May 11, 

2007); SR–NFA–2007–07, Exchange Act 

Release No. 34–57142 (Jan. 14, 2008), 73 

FR 3502 (Jan. 18, 2008); SR–NFA–2008– 

02, Exchange Act Release No. 34–58709 

(Oct. 1, 2008), 73 FR 59011 (Oct. 8, 

2008); SR–NFA–2010–04, Exchange Act 

Release No. 34–63602 (Dec. 22, 2010), 

76 FR 202 (Jan. 3, 2011); and SR–NFA– 

2014–05, Exchange Act Release No. 34– 

72514 (July 2, 2014), 79 FR 39046 (July 

9, 2014). 

2. Statutory Basis 

The proposed rule change is 

authorized by, and consistent with, 

Section 15A(k)(2)(B) of the Exchange 

Act.6 That Section requires NFA to have 

rules that are 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, 

including rules governing sales 

practices and advertising of security 

futures products. The proposed rule 

change accomplishes this by imposing 

enhanced supervisory requirements on 

Member firms that meet certain criteria 

that NFA’s Board has determined 

indicates a greater potential for sales 

practice fraud to occur. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

At first glance, the proposed rule 

change appears to impose additional 

burdens on NFA Members subject to the 

Requirements. In practice, however, 

CFTC Regulation 1.35 7 requires Futures 

Commission Merchants (‘‘FCMs’’), 

Retail Foreign Exchange Dealers 

(‘‘RFEDs’’), and Introducing Brokers 

(‘‘IBs’’), as well as Commodity Pool 

Operators (‘‘CPOs’’) and Commodity 

Trading Advisors (‘‘CTAs’’) that are 

members of a designated contract 

market (‘‘DCM’’) or swaps execution 

facility (‘‘SEF’’) to maintain a record of 

electronic written communications. 

Therefore, the proposed rule imposes no 

new or additional requirements on 

FCMs, RFEDs and IBs as well as CTAs 

and CPOs that are Members of a SEF or 

DCM. 

However, CFTC Regulation 1.35 does 

not apply to CPOs and CTAs that are not 

a member of a DCM or SEF. NFA and 

NFA’s Member Committees realize that 

this proposed rule would impose an 

additional recordkeeping requirement 

and additional costs to CPOs and CTAs 

that are not a member of a DCM or a 

SEF. However, NFA and NFA’s Member 

Committees believe that this 

consideration is outweighed by the fact 

that, in NFA’s experience, firms that 

qualify to adopt the Requirements are 

more likely to engage in deceptive sales 

solicitations and requiring these firms to 

maintain records of electronic written 

communications may reduce the 

likelihood of deceptive sales practices. 

Therefore, this burden is necessary and 

appropriate to help minimize deceptive 

sales solicitations. 

Additionally, the other portion of the 

proposed rule change—the cataloging 

and AP log requirement for electronic 

written communication—poses minimal 

burden on impacted firms because it 

merely parallels the current cataloging 

and AP log requirement for telephone 

sales solicitations. This minimal burden 

is necessary and appropriate to 

minimize the likelihood of abusive sales 

practices. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

NFA worked with Member 

Committees in developing the proposed 

rule change. NFA did not, however, 

publish the proposed rule change to the 

membership for comment. NFA did not 

receive comment letters concerning the 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

On December 11, 2017, the CFTC 

notified NFA of its determination not to 

review the proposed rule change.8 The 

proposed rule change became effective 

on January 31, 2018. 

At any time within 60 days of the date 

of effectiveness of the proposed rule 

change, the Commission, after 

consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refiled in accordance 

with the provisions of Section 19(b)(1) 

of the Exchange Act.9

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 Exchange 

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– 

NFA–2018–02 on the subject line. 


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Federal Register / Vol. 83, No. 124 / Wednesday, June 27, 2018 / Notices 30205 

10 17 CFR 200.30–3(a)(73). 

1 15 U.S.C. 78k–1. 

2 17 CFR 242.608. 

3The Participants are: Cboe BYX Exchange, Inc.; 

Cboe BZX Exchange, Inc.; Cboe EDGA Exchange, 

Inc.; Cboe EDGX Exchange, Inc.; Cboe Exchange, 

Inc.; Chicago Stock Exchange, Inc.; Financial 

Industry Regulatory Authority, Inc.; Investors 

Exchange LLC; Nasdaq BX, Inc.; Nasdaq ISE, LLC; 

Nasdaq PHLX LLC; The Nasdaq Stock Market LLC; 

New York Stock Exchange LLC; NYSE Arca, Inc.; 

NYSE American LLC; and NYSE National, Inc. 

(collectively, the ‘‘Participants’’). 

4The Plan governs the collection, processing, and 

dissemination on a consolidated basis of quotation 

information and transaction reports in Eligible 

Securities for each of its Participants. This 

consolidated information informs investors of the 

current quotation and recent trade prices of Nasdaq 

securities. It enables investors to ascertain from one 

data source the current prices in all the markets 

trading Nasdaq securities. The Plan serves as the 

required transaction reporting plan for its 

Participants, which is a prerequisite for their 

trading Eligible Securities. See Securities Exchange 

Act Release No. 55647 (April 19, 2007), 72 FR 

20891 (April 26, 2007). 

5 17 CFR 242.608(b)(3)(ii). 

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–NFA–2018–02. 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 such 

filing also will be available for 

inspection and copying at the principal 

office of NFA. 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 

publicly available. All submissions 

should refer to File Number SR–NFA– 

2018–02 and should be submitted on or 

before July 18, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13763 Filed 6–26–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83493; File No. S7–24–89] 

Joint Industry Plan; Notice of Filing 

and Immediate Effectiveness of the 

Forty-Third Amendment to the Joint 

Self-Regulatory Organization Plan 

Governing the Collection, 

Consolidation and Dissemination of 

Quotation and Transaction Information 

for Nasdaq-Listed Securities Traded on 

Exchanges on an Unlisted Trading 

Privileges Basis 

June 21, 2018. 

Pursuant to Section 11A of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 608 thereunder,2

notice is hereby given that on June 5, 

2018, the Participants 3 in the Joint SelfRegulatory Organization Plan Governing 

the Collection, Consolidation and 

Dissemination of Quotation and 

Transaction Information for NasdaqListed Securities Traded on Exchanges 

on an Unlisted Trading Privileges Basis 

(‘‘NASDAQ/UTP Plan,’’ ‘‘UTP Plan’’ or 

‘‘Plan’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

a proposal to amend the NASDAQ/UTP 

Plan.4 The amendment represents 

Amendment No. 43 to the NASDAQ/ 

UTP Plan (‘‘Amendment’’). The 

Amendment seeks to effectuate changes 

that certain Participants have made to 

their names and addresses, as set forth 

in Section I(A) of the Nasdaq/UTP Plan 

and to update the listing of Participant 

identifying codes set forth in Section 

VIII(C) of the Plan. 

Pursuant to Rule 608(b)(3)(ii) under 

Regulation NMS,5 the Participants have 

designated the Amendment as 

concerned solely with the 

administration of the Nasdaq/UTP Plan 

and as a ‘‘Ministerial Amendment’’ 

under Section XVI of the Plan. As a 

result, the Amendment was effective 

upon filing and was submitted by the 

Chairman of the Plan’s Operating 

Committee. The Commission is 

publishing this notice to solicit 

comments from interested persons on 

the proposed Amendment. Set forth in 

Sections I and II is the statement of the 

purpose and summary of the 

Amendment, along with the information 

required by Rules 608(a) and 601(a) 

under the Act, prepared and submitted 

by the Participants to the Commission. 

I. Rule 608(a) 

A. Purpose of the Amendments 

The Amendment effectuates changes 

that certain Participants have made to 

their names and addresses, as set forth 

in Section I(A) of the UTP Plan and 

updates the listing of Participant 

identifying codes set forth in Section 

VIII(C) of the UTP Plan. 

B. Governing or Constituent Documents 

Not applicable. 

C. Implementation of the Amendments 

Because the Amendment constitutes a 

‘‘Ministerial Amendment’’ under 

Section XVI of the UTP Plan, the 

Chairman of the UTP Plan’s Operating 

Committee may submit the Amendment 

to the Commission on behalf of the 

Participants in the UTP Plan. Because 

the Participants have designated the 

Amendment as concerned solely with 

the administration of the Plan, the 

Amendment is effective upon filing 

with the Commission. 

D. Development and Implementation 

Phases 

Not applicable. 

E. Analysis of Impact on Competition 

The Participants assert that the 

Amendment does not impose any 

burden on competition because it 

simply effectuates a change in the 

names and addresses of certain 

Participants. For the same reasons, the 

Participants do not believe that the 

Amendment introduces terms that are 

unreasonably discriminatory for 

purposes of Section 11A(c)(1)(D) of the 

Exchange Act. 

F. Written Understanding or Agreements 

Relating to Interpretation of, or 

Participation in, Plan 

Not applicable. 

G. Approval by Sponsors in Accordance 

With Plan 

See Item I.C. above. 


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