63996 Federal Register / Vol. 79, No. 207 / Monday, October 27, 2014 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73192 

(September 23, 2014), 79 FR 58390 (September 29, 

2014) (Notice of Filing of Amendment No. 1, and 

Order Granting Accelerated Approval of a Proposed 

Rule Change, as Modified by Amendment No. 1, To 

Adopt a Supplementary Schedule for Inventory 

Positions Pursuant to FINRA Rule 4524 

(Supplemental FOCUS Information)). 

4 15 U.S.C. 78o–3(b)(6). 

5 15 U.S.C. 78s(b)(3). 

6 17 CFR 240.19b–4(f)(6). 

7 17 CFR 240.19b–4(f)(6)(iii). 

8 Id. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 73392; File No. SR–FINRA– 

2014–044] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Revise the 

Implementation Date for the 

Supplemental Inventory Schedule 

Approved Pursuant to SR–FINRA– 

2014–025 

October 21, 2014. 

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 October 

10, 2014, the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change described in Items 

I and II, below, which Items have been 

substantially prepared by FINRA. 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 revise the 

implementation date for the 

supplementary inventory schedule 

approved pursuant to SR–FINRA–2014– 

025. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at FINRA’s 

principal office, 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 II.A., 

II.B., and II.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 

On September 23, 2014, the 

Commission approved FINRA’s 

proposal to adopt the SIS pursuant to 

FINRA Rule 4524 (Supplemental 

FOCUS Information).3 In SR–FINRA– 

2014–025, FINRA stated that the 

proposed rule change will be effective 

upon Commission approval. In addition, 

FINRA stated it would announce the 

implementation date of the SIS in a 

Regulatory Notice to be published no 

later than 60 days following 

Commission approval and that the due 

date for the first SIS would be no later 

than 90 days following Commission 

approval of the proposed rule change. 

FINRA understands that firms may need 

to make systems changes to map 

inventory positions to the line items on 

the SIS. In order to provide additional 

time for firms to make any necessary 

systems changes to comply with SR– 

FINRA–2014–025, FINRA is proposing 

to revise the implementation date for 

the SIS. The due date for the first SIS, 

disclosing inventory positions for the 

reporting period ending December 31, 

2014, will be January 30, 2015. 

As noted in Item II.A.2. of this filing, 

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the Commission 

waive the requirement that the proposed 

rule change not become operative for 30 

days after the date of the filing. The 

operative date will be the date of filing 

of 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,4 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 is consistent with 

the Act in that it provides firms with 

additional time to make any necessary 

systems changes to comply with SR– 

FINRA–2014–025, which will, among 

other things, provide FINRA with 

greater insights into the types of 

securities held in inventory by firms 

and the related market risk associated 

with such inventory positions. 

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 

believes that extending the 

implementation date of SR–FINRA– 

2014–025 will provide firms additional 

time to make necessary systems 

changes. The due date for the first SIS, 

disclosing inventory positions for the 

reporting period ending December 31, 

2014, will be January 30, 2015. 

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 

The proposed rule change is effective 

upon filing pursuant to Section 19(b)(3) 

of the Act 5 and paragraph (f)(6) of Rule 

19b–4 thereunder,6 because the 

proposed rule change does not 

significantly affect the protection of 

investors or the public interest; does not 

impose any significant burden on 

competition; and does not become 

operative for 30 days after filing or such 

shorter time as the Commission may 

designate. The proposed rule change 

solely modifies the implementation date 

for SR–FINRA–2014–025. 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative prior to 30 days after 

the date of filing.7 Rule 19b–4(f)(6)(iii), 

however, permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest.8

FINRA has requested that the 

Commission waive the 30-day operative 

delay so that FINRA can provide firms 

as much notice as possible regarding the 

reporting period and due date for the 

first SIS. 

The Commission believes that the 

waiver of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 207 / Monday, October 27, 2014 / Notices 63997 

9For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

10 15 U.S.C. 78s(b)(3)(C). 

11 Id. 12 17 CFR 200.30–3(a)(12). 

1Further, the Letter states that should the Shares 

also trade on a market pursuant to unlisted trading 

privileges, such trading will be conducted pursuant 

to self-regulatory organization rules that have 

become effective pursuant to Section 19(b) of the 

Exchange Act. 

2Exchange Act Rel. No. 67215 (June 19, 2012); 77 

FR 37941 (June 25, 2012); Letter from Catherine 

McGuire, Esq., Chief Counsel, Division of Market 

Regulation, to the Securities Industry Association 

Derivative Products Committee (November 21, 

2005); Letter from Racquel L. Russell, Branch Chief, 

Division of Market Regulation, to George T. Simon, 

Esq., Foley & Lardner LLP (June 21, 2006); Letter 

from James A. Brigagliano, Acting Associate 

Director, Division of Market Regulation, to Stuart 

M. Strauss, Esq., Clifford Chance US LLP (October 

Continued 

because it provides firms with a 

reasonable amount of additional time to 

make necessary systems changes so they 

can accurately complete and file the 

SIS. Therefore, the Commission 

designates the proposal operative upon 

filing.9

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act.10

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved.11

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 rulecomments@sec.gov. Please include File 

Number SR–FINRA–2014–44 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–2014–44. 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 Web site (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 Web site 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 the filing also 

will be available for inspection and 

copying at FINRA’s principal office. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. 

All submissions should refer to File 

Number SR–FINRA–2014–44 and 

should be submitted on or before 

November 17, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–25428 Filed 10–24–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73398; File No. TP 15–02] 

Order Granting Limited Exemptions 

From Exchange Act Rule 10b–17 and 

Rules 101 and 102 of Regulation M to 

Global X JP Morgan Efficiente Index 

and Global X JP Morgan US Sector 

Rotator Index ETFs Pursuant to 

Exchange Act Rule 10b–17(b)(2) and 

Rules 101(d) and 102(e) of 

Regulation M 

October 21, 2014. 

By letter dated October 21, 2014 (the 

‘‘Letter’’), as supplemented by 

conversations with the staff of the 

Division of Trading and Markets, 

counsel for Global X Funds (the 

‘‘Trust’’), on behalf of the Trust, Global 

X JP Morgan Efficiente Index and Global 

X JP Morgan US Sector Rotator Index 

ETFs (collectively the ‘‘Funds’’), any 

national securities exchange on or 

through which shares issued by the 

Funds (‘‘Shares’’) may subsequently 

trade, SEI Investment Distribution 

Company, and persons or entities 

engaging in transactions in Shares 

(collectively, the ‘‘Requestors’’), 

requested exemptions, or interpretive or 

no-action relief, from Rule 10b–17 of the 

Securities Exchange Act of 1934, as 

amended (‘‘Exchange Act’’), and Rules 

101 and 102 of Regulation M, in 

connection with secondary market 

transactions in Shares and the creation 

or redemption of aggregations of Shares 

of at least 50,000 shares (‘‘Creation 

Units’’). 

The Trust is registered with the 

Securities and Exchange Commission 

(‘‘Commission’’) under the Investment 

Company Act of 1940, as amended 

(‘‘1940 Act’’), as an open-end 

management investment company. The 

Funds seek to track the performance of 

underlying indexes, specifically the JP 

Morgan ETF Efficiente 10 TR Series X 

Index for the Global X JP Morgan 

Efficiente Index ETF and the JP Morgan 

US Sector Rotator TR Series X Index for 

the Global X JP Morgan US Sector 

Rotator Index ETF (collectively the 

‘‘Indexes’’). The Funds intend to operate 

as ‘‘ETF of ETFs’’ by seeking to track the 

performance of their underlying Indexes 

through investing at least 80% of their 

net assets (plus the amount of any 

borrowings for investment purposes) in 

the ETFs and ETPs which comprise the 

Indexes. Except for the fact that the 

Funds will operate as an ETF of ETFs, 

the Funds will operate in a manner 

identical to the ETFs and ETPs that are 

included in the Indexes. 

The Requestors represent, among 

other things, the following: 

• Shares of the Funds will be issued 

by the Trust, an open-end management 

investment company that is registered 

with the Commission; 

• The Trust will continuously redeem 

Creation Units at net asset value 

(‘‘NAV’’) and the secondary market 

price of the Shares should not vary 

substantially from the NAV of such 

Shares; 

• Shares of the Funds will be listed 

and traded on the NYSE Arca, Inc. or 

another exchange in accordance with 

exchange listing standards that are, or 

will become, effective pursuant to 

Section 19(b) of the Exchange Act (the 

‘‘Exchange’’); 1

• All ETFs and ETPs in which the 

Funds are invested will meet all 

conditions set forth in a relevant class 

relief letter,2 will have received 


tkelley on DSK3SPTVN1PROD with NOTICES