Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 40819 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4See Securities Exchange Act Release No. 46862 

(November 20, 2002), 67 FR 70993 (November 27, 

2002) (Order Approving File No. SR–NASD–2002– 

129). See also Securities Exchange Act Release No. 

46613 (October 7, 2002), 67 FR 64176 (October 17, 

2002) (Notice of Filing and Effectiveness of File No. 

SR–NFA–2002–05). 

5The Commission notes that these exhibits are 

attached as exhibits to the filing. 

6See Securities Exchange Act Release No. 83407 

(June 11, 2018), 83 FR 28045 (June 15, 2018) (Notice 

of Filing and Immediate Effectiveness of File No. 

SR–FINRA–2018–024). 

7Public Law 111–203, 124 Stat. 1376 (2010). 

8 15 U.S.C. 78fff–3. Effective January 1, 2017, and 

for the five years immediately thereafter, the Board 

of Directors of SIPC has determined that the 

maximum amount of the advance to satisfy a claim 

for cash will remain at the current level of $250,000 

per customer. See Securities Exchange Commission, 

Release No. SIPA–174 (February 22, 2016), 81 FR 

9561 (February 25, 2016). 

9Specifically, the proposed rule change would 

remove the quotes around the acronym that defines 

the National Securities Clearing Corporation in 

Section 5.2. 

10See Security Futures Risk Disclosure Statement 

brochure, http://www.finra.org/sites/default/files/ 

Security_Futures_Risk_Disclosure_Statement.pdf, 

posted in its current design in 2016. 

11See FINRA’s Security Futures Topic Page, 

http://www.finra.org/industry/security-futures (last 

visited August 9, 2018). 

12See Information Notice, September 7, 2010 

(August 2010 Supplement to the Security Futures 

Risk Disclosure Statement); see also Regulatory 

Notice 14–24 (May 2014) (stating, a member may 

separately distribute new supplements to a 

customer that enters into a securities futures 

transaction and that a member is not required to 

redistribute the entire Statement or the earlier 

supplement). 

13The Statement, in its original language 

approved by the SEC in 2002, would remain 

accessible on FINRA’s website for those members 

whose customers may still refer to the original 

version of the Statement. The Statement, however, 

would bear a notation that an updated version of 

the Statement, which incorporates the paragraphs 

Continued 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83825; File No. SR–FINRA– 

2018–028] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Security 

Futures Risk Disclosure Statement 

August 10, 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 August 9, 

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 to amend Section 

6.1 (Protections for Securities Accounts) 

of the 2002 security futures risk 

disclosure statement (‘‘2002 Statement’’ 

or ‘‘Statement’’) 4 to reflect that the 

Securities Investor Protection 

Corporation’s (‘‘SIPC’’) cash limit 

protection for customers is $250,000, 

and make one technical change. The 

proposed rule change is related to File 

No. SR–FINRA–2018–024, which sets 

forth additional updates to the 2002 

Statement. 

The proposed updated Statement is 

attached as Exhibit 3a. The proposed 

supplement pertaining to changes to the 

specified paragraph under Section 6.1, 

the proposed technical change to 

Section 5.2, as well as changes to the 

paragraphs specified in File No. SR– 

FINRA–2018–024, is attached as Exhibit 

3b.5

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 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On June 7, 2018, FINRA filed with the 

SEC File No. SR–FINRA–2018–024 to 

update the 2002 Statement to: (1) 

Incorporate prior supplements 

pertaining to Sections 5.2 (Settlement by 

Physical Delivery) and 8.1 (Corporate 

Events); (2) make a technical change to 

Section 5.2 to reflect that the normal 

clearance and settlement cycle for 

securities transaction is now two 

business days; (3) amend Section 6.1 

(Protections for Securities Accounts) to 

reflect the current address for SIPC; and 

(4) make other non-substantive and 

technical changes.6 In addition to that 

recent set of updates to the 2002 

Statement, FINRA is proposing to 

amend Section 6.1 to reflect the correct 

amount of SIPC coverage. The third 

paragraph under Section 6.1 currently 

reads: 

SIPC coverage is limited to $500,000 per 

customer, including up to $100,000 for cash. 

For example, if a customer has 1,000 shares 

of XYZ stock valued at $200,000 and $10,000 

cash in the account, both the security and the 

cash balance would be protected. However, 

if the customer has shares of stock valued at 

$500,000 and $100,000 in cash, only a total 

of $500,000 of those assets will be protected. 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act 7 amended 

the Securities Investor Protection Act of 

1970 (‘‘SIPA’’) to raise the ‘‘standard 

maximum cash advance amount’’ 

available to satisfy customer cash claims 

in a SIPA liquidation proceeding from 

$100,000 to $250,000 per customer.8 To 

reflect the current limit of protection for 

cash claims under SIPA, FINRA is 

proposing to amend the third paragraph 

of Section 6.1 to read: 

SIPC coverage is limited to $500,000 per 

customer, including up to $250,000 for cash. 

For example, if a customer has 1,000 shares 

of XYZ stock valued at $200,000 and $10,000 

cash in the account, both the security and the 

cash balance would be protected. However, 

if the customer has shares of stock valued at 

$500,000 and $250,000 in cash, only a total 

of $500,000 of those assets will be protected. 

In addition, FINRA is proposing to 

incorporate one technical change into 

the proposed updated Statement.9

Currently, the 2002 Statement, to 

which 2010 and 2014 supplements are 

appended, is posted on FINRA’s 

website 10 and the 2010 and 2014 

supplements are also posted on the 

website 11 as separate documents to 

facilitate a member’s compliance with 

Rule 2370(b)(11)(A).12 FINRA intends to 

replace the 2002 Statement currently 

posted on FINRA’s website with an 

updated Statement that incorporates 

into the main body of the document the 

cumulative changes made to date, as 

well as the proposed amendment to the 

third paragraph of Section 6.1 and the 

one technical change described 

herein.13


sradovich on DSK3GMQ082PROD with NOTICES
40820 Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 

specified in the proposed integrated supplement, is 

available. 

14The 2010 and 2014 supplements would remain 

accessible on FINRA’s website with a notation that 

these paragraphs, as updated, appear in the 2018 

supplement. 

15FINRA intends to announce the September 5, 

2018 implementation date in an upcoming 

Regulatory Notice that will also establish September 

5, 2018 as the implementation date for other 

changes to the Statement. See Securities Exchange 

Act Release No. 83407 (June 11, 2018), 83 FR 28045 

(June 15, 2018) (Notice of Filing and Immediate 

Effectiveness of File No. SR–FINRA–2018–024). 

16 15 U.S.C. 78o–3(b)(6). 

17See Securities Act Release No. 7288 (May 9, 

1996), 61 FR 24644 (May 15, 1996) and Securities 

Act Release No. 7233 (October 6, 1995), 60 FR 

53458 (October 13, 1995). See also Securities Act 

Release No. 7856 (April 28, 2000), 65 FR 25843 

(May 4, 2000) (affirming that the framework for 

electronic delivery established in the 1995 and 1996 

releases continues to work well in today’s 

technological environment). 

18See Notice to Members 98–3 (January 1998). 

19See Information Notice, September 7, 2010 

(August 2010 Supplement to the Security Futures 

Risk Disclosure Statement). 

20 15 U.S.C. 78s(b)(3)(A). 

21 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires FINRA to give the Commission 

written notice of FINRA’s intent to file the proposed 

rule change, along with a brief description and text 

of 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. FINRA has satisfied this requirement. 

22 17 CFR 240.19b–4(f)(6). 

23 17 CFR 240.19b–4(f)(6)(iii). 

24For 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). 

FINRA is also in the process of 

creating a single, integrated supplement 

that aggregates the changes from File 

No. SR–FINRA–2018–024 and the 

updates described in this proposed rule 

change (‘‘2018 supplement’’). The 2018 

supplement would appear on FINRA’s 

website as a separate document to 

continue to afford members with the 

flexibility to comply with the 

requirements of Rule 2370(b)(11)(A) by 

separately distributing the new 

supplement to customers who have 

already received the 2002 Statement.14

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the SEC waive the 

requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, so that FINRA 

can implement the proposed rule 

change on September 5, 2018.15

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,16 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 

updating the Statement to incorporate 

all supplements into the main body will 

help to accurately inform customers of 

the characteristics and risks of security 

futures. The proposed updated 

Statement would also reflect that SIPC’s 

current cash limit protection for 

customers is $250,000, increased from 

$100,000 in 2010. 

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. While FINRA 

recognizes that there may be a burden 

associated with the distribution of the 

proposed updated Statement or 2018 

supplement, FINRA believes that any 

such burden would be outweighed by 

the benefit to customers of accurately 

disclosing the characteristics and risks 

of security futures. FINRA also believes 

that any burden will be minimal 

because firms currently have an existing 

obligation to deliver each new (i.e., 

updated) Statement or supplement to 

customers, and may electronically 

transmit documents that they are 

required to furnish to customers under 

FINRA rules, including the proposed 

updated Statement or 2018 supplement, 

provided firms adhere to the standards 

contained in the Commission’s May 

1996 and October 1995 releases on 

electronic delivery,17 and as discussed 

in Notice to Members 98–3.18 Firms also 

may transmit the proposed updated 

Statement or 2018 supplement to 

customers through the use of a 

hyperlink, provided that customers have 

consented to electronic delivery.19

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 20 and Rule 19b– 

4(f)(6) thereunder.21

A proposed rule change filed under 

Rule 19b–4(f)(6) 22 normally does not 

become operative for 30 days after the 

date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii),23 the Commission 

may 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 

the proposed changes can be 

implemented on September 5, 2018. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because it will allow the 

implementation date of the proposed 

changes to coincide with the 

implementation date of other changes 

that will be made to the Statement. 

Accordingly, the Commission hereby 

waives the 30-day operative delay 

requirement and designates the 

proposed rule change as operative upon 

filing.24

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–2018–028 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–FINRA–2018–028. 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 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 40821 

25 17 CFR 200.30–3(a)(12). 

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 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– 

2018–028, and should be submitted on 

or before September 6, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–17631 Filed 8–15–18; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 10506] 

Notice of Public Meeting 

The Department of State will conduct 

an open meeting at 10:30 a.m. on 

Friday, September 14, 2018, in Room 

5Y23–21 of the Douglas A. Munro Coast 

Guard Headquarters Building at St. 

Elizabeth’s, 2703 Martin Luther King Jr. 

Avenue SE, Washington, DC 20593. The 

primary purpose of the meeting is to 

prepare for the fifth Session of the 

International Maritime Organization’s 

(IMO) Sub-Committee on 

Implementation of IMO Instruments (III 

5) to be held at the IMO headquarters, 

London, United Kingdom, on September 

24–28, 2018. 

The agenda items to be considered 

include: 

—Decisions of other IMO bodies; 

—Consideration and analysis of reports 

on alleged inadequacy of port 

reception facilities; 

—Lessons learned and safety issues 

identified from the analysis of marine 

safety investigation reports; 

—Measures to harmonize port state 

control (PSC) activities and 

procedures worldwide; 

—Identified issues related to the 

implementation of IMO instruments 

from the analysis of PSC data; 

—Analysis of consolidated audit 

summary reports; 

—Updated survey guidelines under the 

Harmonized System of Survey and 

Certification (HSSC); 

—Non-exhaustive list of obligations 

under the instruments relevant to the 

IMO Instruments Implementation 

Code (III Code); and 

—Unified interpretation of provisions of 

IMO safety, security, and environment 

related conventions. 

—Review the Model Agreement for the 

authorization of recognized 

organizations acting on behalf of the 

Administration. 

The public meeting will focus on 

answering any questions from the 

public that are directly related to the 

meeting documents submitted for this 

meeting. The public may attend this 

meeting up to the seating capacity of the 

room. However, due to the size of the 

room and security protocols at Coast 

Guard Headquarters, members of the 

public are encouraged to participate via 

teleconference. To access the 

teleconference line or request physical 

access to the meeting, participants 

should contact the meeting coordinator, 

Mr. Christopher Gagnon, by email at 

christopher.j.gagnon@uscg.mil or by 

phone at (202) 372–1231. Physical 

access to the meeting requires that all 

attendees respond to the meeting 

coordinator not later than September 5, 

2018, seven working days prior to the 

meeting. Responses made after 

September 5, 2018 might result in not 

being able to participate in person at the 

meeting. Please note that due to security 

considerations, two valid, government 

issued photo identifications must be 

presented to gain entrance to the Coast 

Guard Headquarters building. The 

building is accessible by public 

transportation or taxi. 

Joel C. Coito, 

Coast Guard Liaison Officer, Office of Ocean 

and Polar Affairs, Department of State. 

[FR Doc. 2018–17701 Filed 8–15–18; 8:45 am] 

BILLING CODE 4710–09–P 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

[Docket No. USTR–2018–0027] 

2018 Special 301 Out-of-Cycle Review 

of Notorious Markets: Comment 

Request 

AGENCY: Office of the United States 

Trade Representative. 

ACTION: Request for comments. 

SUMMARY: The Office of the United 

States Trade Representative (USTR) 

requests written comments that identify 

online and physical markets based 

outside the United States that should be 

included in the 2018 Notorious Markets 

List (List). Conducted under the 

auspices of the Special 301 program, the 

List identifies online and physical 

marketplaces that reportedly engage in 

and facilitate substantial copyright 

piracy and trademark counterfeiting. In 

2010, USTR began publishing the 

Notorious Markets List separately from 

the annual Special 301 Report as an 

‘‘Out-of-Cycle Review.’’ 

DATES: 

October 1, 2018 at midnight EST: 

Deadline for submission of written 

comments. 

October 15, 2018 at midnight EST: 

Deadline for submission of rebuttal 

comments and other information USTR 

should consider during the review. 

ADDRESSES: You should submit written 

comments through the Federal 

eRulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments in 

section III below. For alternatives to 

online submissions, please contact 

USTR at Special301@ustr.eop.gov before 

transmitting a comment and in advance 

of the relevant deadline. 

FOR FURTHER INFORMATION CONTACT: 

Sung Chang, Director for Innovation and 

Intellectual Property, at special301@

ustr.eop.gov. You can find information 

about the Special 301 Review, including 

the Notorious Markets List, at 

www.ustr.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The United States is concerned with 

trademark counterfeiting and copyright 

piracy on a commercial scale because 

they cause significant financial losses 

for right holders, legitimate businesses 

and governments, undermine critical 

U.S. comparative advantages in 

innovation and creativity to the 

detriment of American workers, and 

potentially pose significant risks to 

consumer health and safety as well as 

privacy and security. The Notorious 


sradovich on DSK3GMQ082PROD with NOTICES