D E TE R MI N A TI ON OF “SIPC NET OPERATING REVENUES”

A N D GENERAL ASSESSMENT Am o u n ts fo r th e fi scal period

beginning
and ending

Elim ina t e ce nts

Item No.
2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030) $

2b. Additions:
(1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and
predecessors not included above.

(2) Net loss from principal transactions in securities in trading accounts.

(3) Net loss from principal transactions in commodities in trading accounts.

(4) Interest and dividend expense deducted in determining item 2a.

(5) Net loss from management of or participation in the underwriting or distribution of securities.

(6) Expenses other than advertising, printing, registration fees and legal fees deducted in determining net
profit from management of or participation in underwriting or distribution of securities.

(7) Net loss from securities in investment accounts.

Total additions

2c. Deductions:
(1) Revenues from the distribution of shares of a registered open end investment company or unit
investment trust, from the sale of variable annuities, from the business of insurance, from
investment advisory services rendered to registered investment companies or insurance company
separate accounts and from transactions in security futures products.

(2) Revenues from commodity transactions.

(3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with
securities transactions.

(4) Reimbursements for postage in connection with proxy solicitation.

(5) Net gain from securities in investment accounts.

(6) 100% of commissions and markups earned from transactions in (i) certificates of deposit and
(ii) Treasury bills, bankers acceptances or commercial paper that mature nine months or less
from issuance date.

(7) Direct expenses of printing, advertising and legal fees incurred in connection with other revenue
related to the securities business (revenue defined by Section 16(9)(L) of the Act).

(8) Other revenue not related either directly or indirectly to the securities business.
(See Instruction C):

(Deductions in excess of $100,000 require documentation)

(9) (i) Total interest and dividend expense (FOCUS Line 22/PART IIA Line 13,
Code 4075 plus line 2b(4) above) but not in excess
of total interest and dividend income $

(ii) 40% of margin interest earned on customers securities

accounts (40% of FOCUS line 5, Code 3960) $

Enter the greater of line (i) or (ii)

Total deductions

2d. SIPC Net Operating Revenues $

2e. General Assessment @ .0015 $

(to page 1, line 2.A.)

2
 S I P C-6 Instructions
This form is to b e file d b y al l m em ber s of t he S ec ur i t i es I n ve sto r Pr o te cti o n C o r p o r a ti o n fo r th e fi r st h a l f o f e a ch fi sca l year, due
n o l ater th a n 3 0 d a y s a fter t he end of t hat per i od. A t t he e n d o f yo u r fi sca l ye a r , yo u w i l l r e ce i ve a SIPC - 7 , Ge n e r a l Assessment
R ec onc ilia tio n F o r m, wh ich w i l l be bas ed upon t he t ot al re ve n u e r e p o r te d i n yo u r Se cu r i ti e s a n d Exch a n g e C o m m i ssi o n Rule 17a-5
a n nual aud ite d s ta te me n t of i nc om e. T her e w i l l be a pl ace o n th a t fo r m to d e d u ct th e SIPC - 6 a sse ssm e n t p a i d . Qu e sti ons pertaining to
th is form s h o u ld b e d ir e c te d t o S I P C v i a e- m ai l at f or m @ si p c.o r g o r b y ca l l i n g 2 0 2 - 3 7 1 - 8 3 0 0 .
A . For the pur p oses of this form, the term “ SIPC Net
O p erating Revenues” shall mean gross revenues from the
se curities business as define d in or pur suant to the ap plic able
se c tions of the Se curities Investor Prote c tion Ac t of 1970 (“Ac t ”)
and Ar tic le 6 of SIPC’s bylaws (see page 4), less item 2c(9) on
page 2.
B. Gross revenues of subsidiaries, exc ept foreign
subsidiaries, are re quire d to b e inc lude d in SIPC Net O p erating
Revenues on a c onsolidate d basis exc ept for a subsidiar y filing
separately as explaine d hereinaf ter.
If a subsidiar y was re quire d to file a Rule 17a-5 annual audite d
statement of inc ome separately and is also a SIPC memb er, then
such subsidiar y must itself file SIPC- 6, pay the assessment, and
should not b e c onsolidate d in your SIPC- 6.
SIPC Net O p erating Revenues of a pre de c essor memb er which
are not inc lude d in item 2a, were not rep or te d separately and the
SIPC assessments were not paid thereon by such pre de c essor,
shall b e inc lude d in item 2b(1).
C. Your General Assessment should be computed as follows:
(1) Line 2a For the fisc al p erio d enter total revenue base d
up on amounts rep or te d in your Rule 17a-5 Annual Audite d
Statement of Inc ome prepare d in c onformit y with generally
ac c epte d ac c ounting princ iples ap plic able to se curities
broker s and dealer s, or if exempte d from that rule, use
X-17A-5 (FOCUS Rep or t) Line 12, Co de 4030.
(2) Adjustments The pur p ose of the adjustments on page 2 is
to determine SIPC Net O p erating Revenues.
(a) Ad ditions Lines 2b(1) through 2b(7) assure that
assessable inc ome and gain items of SIPC Net
O p erating Revenues are totale d, unre duc e d by any
losses (e.g., if a net loss was incurre d for the p erio d
from all transac tions in trading ac c ount se curities, that
net loss does not re duc e other assessable revenues).
Thus, line 2b(4) would inc lude all shor t dividend
and interest payments inc luding those incurre d in
rever se c onver sion ac c ounts, rebates on stoc k loan
p ositions and rep o interest which have b een net te d in
determining line 2(a).
(b) Deductions Line 2c(1) through line 2c(9) are either
provide d for in the statute, as in de duc tion 2c(1), or are
allowe d to arrive at an assessment base c onsisting of
net op erating revenues from the se curities business.
For example, line 2c(9) allows for a de duc tion of either
the total interest and dividend exp ense (not to exc ee d
interest and dividend inc ome), as rep or te d on FOCUS
line 22 /PART 11A Line 13 (Co de 4075), plus line 2b(4)
or 40% of interest earne d on customer s’ se curities
ac c ounts (40% of FOCUS Line 5 Co de 39 60). Be
c er tain to c omplete b oth line (i) and (ii), entering the
greater of the t wo in the far right c olumn. Dividends
paid to shareholder s are not c onsidere d “ Exp ense” and
thus are not to b e inc lude d in the de duc tion. Likewise,
interest and dividends paid to par tner s pur suant to
par tner ship agreements would also not b e de duc te d.
3
If the amount re p or te d on line 2c (8) ag gre gates
to $10 0,0 0 0 or greater, su p p or ting d o c umentation
must ac c om pany the form that i d entifies these
d e d uc tions. Exam p les of su p p or t information
in c lu d e; c ontrac tual agreements, p ros p e c tuses,
an d limite d par tnershi p d o c umentation.
(i) Determine your SIPC Net O p erating Revenues, item
2d, by ad ding to item 2a, the total of item 2b, and
de duc ting the total of item 2c.
(ii) Multiply the SIPC Net O p erating Revenues by the
ap plic able rate. Enter the resulting amount in item 2e
and on line 2A of page 1.
(iii) E nter interest c ompute d on late payment (if ap plic able)
on line 2B.
(iv) Enter the total due on line 2C and the payment of the
amount due on line 2D.
D. Any SIPC memb er which is also a bank (as define d in
the Se curities Exchange Ac t of 1934) may exc lude from SIPC
Net O p erating Revenues dividends and interest re c eive d on
se curities in its investment ac c ounts to the ex tent that it c an
demonstrate to SIPC’s satisfac tion that such se curities are
held, and such dividends and interest are re c eive d, solely in
c onne c tion with its op erations as a bank and not in c onne c tion
with its op erations as a broker, dealer or memb er of a national
se curities exchange. Any memb er who exc ludes from SIPC Net
O p erating Revenues any dividends or interest pur suant to the
pre c e ding sentenc e shall file with this form a sup plementar y
statement set ting for th the amount so exc lude d and proof of its
entitlement to such exc lusion.
E. Interest on Assessments. If all or any par t of an assessment
payable under Se c tion 4 of the Ac t has not b een p ostmar ke d
within 15 days af ter the due date thereof, the memb er shall pay,
in ad dition to the amount of the assessment, interest at the rate
of 20% p er annum on the unpaid p or tion of the assessment for
each day it has b een overdue.
Mail this completed form to SIPC together with a
check for the amount due, made payable to SIPC,
using the enclosed return PO BOX envelope, pay via
ACH Debit Authorization through SIPC’s ACH system
at www.sipc.org/for-members/assessments or wire
the payment to:
On the wire identify the name of the firm and its SEC
Registration 8-# and label it as “for assessment.”
Please fax a copy of the assessment form to (202)-223-1679
or e-mail a copy to form@sipc.org on the same day as the
wire.
Fr om S e c t i o n 1 6 ( 9 ) of the A ct:
The term “ g r o s s r e v e n ues f r om t he s ec ur i t i es bus i ness” m e a n s th e su m o f ( b u t w i th o u t d u p l i ca ti o n ) —

(A) c o mmis s io n s e a r ned i n c onnec t i on w i t h t r ans acti o n s i n se cu r i ti e s e ffe cte d fo r cu sto m e r s a s a g e n t ( n e t o f co mmissions paid
to oth e r b r o k e r s a n d deal er s i n c onnec t i on w i t h s u ch tr a n sa cti o n s) a n d m a r ku p s w i th r e sp e ct to p u r ch a se s o r sales of securities
as p r in c ip a l;

(B) c h a r g e s fo r e x ec ut i ng or c l ear i ng t r ans ac t i ons i n se cu r i ti e s fo r o th e r b r o ke r s a n d d e a l e r s;

(C) th e n e t r e a liz e d gai n, i f any , f r om pr i nc i pal t r an sa cti o n s i n se cu r i ti e s i n tr a d i n g a cco u n ts;

(D) th e n e t p r o fit, if any , f r om t he m anagem ent of o r p a r ti ci p a ti o n i n th e u n d e r w r i ti n g o r d i str i b u ti o n o f se cu r i ti e s;

(E) in te r e s t e a r n e d on c us t om er s ’ s ec ur i t i es ac c ou n ts;

(F) fe e s fo r in v e s tm ent adv i s or y s er v i c es ( ex c ept w h e n r e n d e r e d to o n e o r m o r e r e g i ste r e d i n ve stm e n t co m p a n i es or

insu r a n c e c o mp a n y s epar at e ac c ount s ) or ac c ount su p e r vi si o n w i th r e sp e ct to se cu r i ti e s;

(G) fe e s fo r th e s o l i c i t at i on of pr ox i es w i t h r es pect to , o r te n d e r s o r e xch a n g e s o f, se cu r i ti e s;

(H) in c o me fr o m s e r v i c e c har ges or ot her s ur c har g e s w i th r e sp e ct to se cu r i ti e s;

(I) e x c e p t a s o th e r w i s e pr ov i ded by r ul e of t he C om m i ssi o n , d i vi d e n d s a n d i n te r e st r e ce i ve d o n se cu r i ti e s i n i n vestment

acc o u n ts o f th e b r ok er or deal er ;

(J ) fe e s in c o n n e c t i on w i t h put , c al l , and ot her opt i o n s tr a n sa cti o n s i n se cu r i ti e s;

(K) c o mmis s io n s e a r ned f or t r ans ac t i ons i n ( i ) c er ti fi ca te s o f d e p o si t, a n d ( i i ) Tr e a su r y b i l l s, b a n ke r s a cce p ta n ces, or

c om me r c ia l p a p e r w hi c h hav e a m at ur i t y at t he t i m e o f i ssu a n ce o f n o t e xce e d i n g n i n e m o n th s, e xcl u si ve o f d a ys of grace, or
any r e n e wa l th e r e o f , t he m at ur i t y of w hi c h i s l i k ewi se l i m i te d , e xce p t th a t SIPC sh a l l b y b yl a w i n cl u d e i n th e a g gregate of
gros s r e v e n u e s o n l y an appr opr i at e per c ent age of su ch co m m i ssi o n s b a se d o n SIPC ’ s l o ss e xp e r i e n ce w i th r e spect to such
instr u me n ts o v e r a t l eas t t he pr ec edi ng f i v e y ear s; a n d

(L) fe e s a n d o th e r i nc om e f r om s uc h ot her c at egor i e s o f th e se cu r i ti e s b u si n e ss a s SIPC sh a l l p r o vi d e b y b yl a w .

Such te r m in c lu d e s r ev enues ear ned by a br ok er or d e a l e r i n co n n e cti o n w i th a tr a n sa cti o n i n th e p o r tfo l i o m a r g ining account of

a c usto me r c a r r ie d a s s ec ur i t i es ac c ount s pur s uant t o a p o r tfo l i o m a r g i n i n g p r o g r a m a p p r o ve d b y th e C o m m i ssi o n . Such term does
not i nclu d e r e v e n u e s r ec ei v ed by a br ok er or deal er i n co n n e cti o n w i th th e d i str i b u ti o n o f sh a r e s o f a r e g i ste r e d o pen end invest-
m ent c o mp a n y o r u n it i nv es t m ent t r us t or r ev enues de r i ve d b y a b r o ke r o r d e a l e r fr o m th e sa l e s o f va r i a b l e a n n u i ties, the busi-
ness o f in s u r a n c e , o r t r ans ac t i ons i n s ec ur i t y f ut ur es p r o d u cts.

Fr om S e c t i o n 1 6 ( 1 4) of the A ct:
The term “ S e c u r ity ” me a n s any not e, s t oc k , t r eas ur y s t ock, b o n d , d e b e n tu r e , e vi d e n ce o f i n d e b te d n e ss, a n y co l l a te r a l trust certificate,
p reorgani z a tio n c e r tific a te or s ubs c r i pt i on, t r ans f er abl e sh a r e , vo ti n g tr u st ce r ti fi ca te , ce r ti fi ca te o f d e p o si t, ce r ti fi ca te of deposit for
a s ecuri ty , o r a n y s e c u r ity f ut ur e as t hat t er m i s def i ned i n se cti o n 7 8 c( a ) ( 5 5 ) ( A) o f th i s ti tl e , a n y i n ve stm e n t co n tr a ct or certificate
o f interest o r p a r tic ip a tio n i n any pr of i t - s har i ng agr eem ent o r i n a n y o i l , g a s o r m i n e r a l r o ya l ty o r l e a se ( i f su ch i n ve stment contract
o r interest is th e s u b je c t of a r egi s t r at i on s t at em ent w i t h th e C o m m i ssi o n p u r su a n t to th e p r o vi si o n s o f th e Se cu r i ti e s Act of 1933 [15
U .S.C. 77a e t s e q .]) , a n y put , c al l , s t r addl e, opt i on, or pr i vi l e g e o n a n y se cu r i ty, o r g r o u p o r i n d e x o f se cu r i ti e s ( i n cl u ding any interest
th erein or b a s e d o n th e v al ue t her eof ) , or any put , c al l , str a d d l e , o p ti o n , o r p r i vi l e g e e n te r e d i n to o n a n a ti o n a l se cu r i ties exchange
re lati ng to fo r e ig n c u r r e n c y , any c er t i f i c at e of i nt er es t or p a r ti ci p a ti o n i n , te m p o r a r y o r i n te r i m ce r ti fi ca te fo r , r e ce i p t for, guarantee
o f , or w arr a n t o r r ig h t to subs c r i be t o or pur c has e or s el l a n y o f th e fo r e g o i n g , a n d a n y o th e r i n str u m e n t co m m o n l y kn own as a secu-
rit y. Exc ept a s s p e c ific a lly pr ov i ded abov e, t he t er m “ s ecu r i ty” d o e s n o t i n cl u d e a n y cu r r e n cy, o r a n y co m m o d i ty o r r e l ated contract or
fu tures c ontr a c t, o r a n y war r ant or r i ght t o s ubs c r i be t o or p u r ch a se o r se l l a n y o f th e fo r e g o i n g .

Fr om S I P C B y l a w A rti cl e 6 (A sse ssm e nts):

Se ct i on 1 ( f ) :
The term “ g r o s s r e v e n u e s f r om t he s ec ur i t i es bus i nes s ” in cl u d e s th e r e ve n u e s i n th e d e fi n i ti o n o f g r o ss r e ve n u e s fr o m the securities
b u sines s s e t fo r th in th e appl i c abl e s ec t i ons of t he A c t .

Se ct i on 3 :
For purpos e o f th is a r tic le:
(a) The te r m “ s e c u r ities i n t r adi ng ac c ount s ” s hal l m ean se cu r i ti e s h e l d fo r sa l e i n th e o r d i n a r y co u r se o f b u si n e ss and not
identi fie d a s h a v in g b een hel d f or i nv es t m ent .
(b) The te r m “ s e c u r itie s i n i nv es t m ent ac c ount s ” s hal l m e a n se cu r i ti e s th a t a r e cl e a r l y i d e n ti fi e d a s h a vi n g b e e n a cquired for
investme n t in a c c o r d a nc e w i t h pr ov i s i ons of t he I nt er n a l R e ve n u e C o d e a p p l i ca b l e to d e a l e r s i n se cu r i ti e s.
(c ) The te r m “ fe e s a n d ot her i nc om e f r om s uc h ot her ca te g o r i e s o f th e se cu r i ti e s b u si n e ss” sh a l l m e a n a l l r e ve n u e related either
di rectly o r in d ir e c tly to t he s ec ur i t i es bus i nes s ex c ept r e ve n u e i n cl u d e d i n Se cti o n 1 6 ( 9 ) ( A) - ( L ) a n d r e ve n u e sp e ci fi cally excepted
in Sectio n 4 ( c ) ( 3 ) ( C) [It em 2c ( 1) , page 2] .

N o t e : I f t h e a m ount of as s es s m ent ente re d o n lin e 2 e o f SIPC-6 is g re a te r th a n 1 /2 o f 1 % o f “ g r o s s r e v e n u e s f r o m t h e s e c u r i t i e s b u s i n e s s ” a s d e f i n e d a b o v e , y o u ma y s u b mi t t h a t ca l cu l a ti o n

al o n g w i th t h e S I P C -6 f orm t o S I P C an d p a y th e sma lle r a mo u n t, su b je ct to re vie w by y o u r E x a mi n i n g A u t h o r i t y a n d b y S I P C.
S I P C E x amin in g Au th o ritie s:

A S E Ame rica n Sto ck Exch a n g e , L L C F I NRA F i n a n c i a l I n d u s t r y Re g u l a t o r y A u t h o r i t y

C B OE Ch ica g o Bo a rd Op tio n s Exch a n g e , In co rp o ra te d NY S E Arca, Inc.
C H X Ch ica g o Sto ck Exch a n g e , In co rp o ra te d NA S DA Q O MX P HL X
4 S I P C S e c u r i t i e s I n v e s t o r P r o t e c t i o n Co r p o r a t i o n