Federal Register / Vol. 80, No. 3 / Tuesday, January 6, 2015 / Notices 539 

1 Docket No. CP2011–45, Order Adding Global 

Expedited Package Services–Non-Published Rates 2 

to the Competitive Product List, December 30, 2010 

(Order No. 630). 

2 Docket Nos. MC2013–27 and CP2013–35, Order 

Adding Global Expedited Package Services-NonPublished Rates 4 (GEPS–NPR 4) to the Competitive 

Product List, January 16, 2013 (Order No. 1625). 

3 Docket Nos. MC2013–27 and CP2014–22, Order 

Approving Change in Prices for Global Package 

Services–Non-Published Rates 4 (GEPS–NPR 4), 

January 10, 2014 (Order No. 1959). 

4Request of the United States Postal Service to 

Add Global Expedited Package Services—NonPublished Rates 5 (GEPS—NPR 5) to the 

Competitive Product List and Notice of Filing 

GEPS—NPR 5 Model Contract and Application for 

Non-Public Treatment of Materials Filed Under 

Seal, December 24, 2014 (Request). 

5The Postal Service claims it does not exercise 

sufficient market power to set the price of PMEI, 

PMI, and GXG substantially above costs, raise 

prices significantly, decrease quality, or decrease 

output, without risk of losing a significant level of 

business to other firms offering similar products. Id. 

at 4; 39 U.S.C. 3642(b). 6See Order No. 1959. 

POSTAL REGULATORY COMMISSION 

[Docket Nos. MC2015–23 and CP2015–29; 

Order No. 2314] 

New Postal Product 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is noticing a 

recent Postal Service filing concerning 

the addition of Global Expedited 

Package Services–Non-Published Rates 

Contract 5 to the competitive product 

list. This notice informs the public of 

the filing, invites public comment, and 

takes other administrative steps. 

DATES: Comments are due: January 7, 

2015. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http://

www.prc.gov. Those who cannot submit 

comments electronically should contact 

the person identified in the FOR FURTHER

INFORMATION CONTACT section by 

telephone for advice on filing 

alternatives. 

FOR FURTHER INFORMATION CONTACT: 

David A. Trissell, General Counsel, at 

202–789–6820. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Notice of Commission Action 

III. Ordering Paragraphs 

I. Introduction 

In accordance with 39 U.S.C. 3642 

and 39 CFR 3020.30 et seq., and Order 

Nos. 630,1 1625,2 and 1959,3 the Postal 

Service filed a formal request and 

associated supporting information to 

add Global Expedited Package Services– 

Non-Published Rates Contract 5 (GEPS– 

NPR 5) to the competitive product list.4

The Postal Service states the addition of 

GEPS–NPR 5 to the competitive 

products list is necessary due to its 

creation of both a Management Analysis 

of the Prices and Methodology for 

Determining Prices for Negotiated 

Service Agreements under Global 

Expedited Package Services–NonPublished Rates 5 (GEPS–NPR 5 

Management Analysis), and an 

accompanying financial model that 

revises the previously filed GEPS–NPR 

4 Version 2 Management Analysis and 

its financial model. Request at 3. 

To support its Request, the Postal 

Service filed the following attachments: 

• Attachment 1, an application for 

non-public treatment of materials filed 

under seal; 

• Attachment 2A, a redacted version 

of Governors’ Decision No. 11–6; 

• Attachment 2B, a revised version of 

the Mail Classification Schedule section 

2510.8 GEPS–NPR; 

• Attachment 2C, a redacted version 

of GEPS–NPR 5 Management Analysis; 

• Attachment 2D, a list of Maximum 

and Minimum Prices for Priority Mail 

Express International (PMEI), and 

Priority Mail International (PMI), and 

Global Express Guaranteed (GXG); 

• Attachment 2E, a certified 

statement concerning the prices for 

applicable negotiated service 

agreements under GEPS–NPR 5, as 

required by 39 CFR 3015.5(c)(2); 

• Attachment 3, a Statement of 

Supporting Justification, similar to the 

Statement of Supporting Justifications 

used to support the classification of 

GEPS–NPR 3 and GEPS–NPR 4, and 

which is filed pursuant to 39 CFR 

3020.32; and 

• Attachment 4, a redacted version of 

the GEPS–NPR 5 model contract. 

In a Statement of Supporting 

Justification, Giselle Valera, Managing 

Director and Vice President, Global 

Business, asserts the product is 

designed to increase efficiency of the 

Postal Service’s process, as well as 

enhance its ability to compete in the 

marketplace. Request, Attachment 3 at 

1. She contends GEPS–NPR 5 belongs 

on the competitive product list as it is 

part of a market over which the Postal 

Service does not exercise market 

dominance,5 is not subsidized by 

market dominant products, covers costs 

attributable to it, and does not cause 

competitive products as a whole to fail 

to make the appropriate contribution to 

institutional costs. Id. at 1, 3. 

The Postal Service included a 

redacted version of the GEPS–NPR 5 

model contract with the Request. Id. 

Attachment 4. The Postal Service 

represents the GEPS–NPR 5 model 

contract is a slight modification of the 

GEPS–NPR 4 Version 2 model contract 

approved by the Commission in Order 

No. 1959.6

The Postal Service represents it will 

notify each GEPS–NPR 5 customer of 

the contract’s effective date no later than 

30 days after receiving the signed 

agreement from the customer. Id. 

Attachment 4 at 4. Each contract will 

expire the later of one year from the 

effective date or the last day of the 

month which falls one calendar year 

from the effective date, unless 

terminated sooner. Id. The Postal 

Service represents that the contract is 

consistent with 39 U.S.C. 3633(a). 

Request at 11; id. Attachment 4. 

The Postal Service filed much of the 

supporting materials, including the 

related model contract, under seal. 

Request, Attachment 1. It maintains that 

the redacted portions of the materials 

should remain confidential as sensitive 

business information. Id. at 4. This 

information includes sensitive 

commercial information concerning the 

incentive discounts and their 

formulation, applicable cost-coverage, 

non-published rates, as well as some 

customer-identifying information. Id. 

The Postal Service asks the Commission 

to protect customer-identifying 

information from public disclosure for 

ten years after the date of filing with the 

Commission, unless an order is entered 

to extend the duration of that status. Id. 

at 9. 

II. Notice of Commission Action 

The Commission establishes Docket 

Nos. MC2015–23 and CP2015–29 to 

consider the Request pertaining to the 

proposed Global Expedited Package 

Services—Non-Published Rates 5 

product and the related model contract, 

respectively. 

The Commission invites comments on 

whether the Postal Service’s filings in 

the captioned dockets are consistent 

with the policies of 39 U.S.C. 3632, 

3633, or 3642, 39 CFR part 3015, and 39 

CFR part 3020, subpart B. Comments are 

due no later than January 7, 2015. The 

public portions of these filings can be 

accessed via the Commission’s Web site 

(http://www.prc.gov). 

The Commission appoints James F. 

Callow to serve as Public Representative 

in these dockets. 

III. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

Nos. MC2015–23 and CP2015–29 to 


tkelley on DSK3SPTVN1PROD with NOTICES
540 Federal Register / Vol. 80, No. 3 / Tuesday, January 6, 2015 / Notices 

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

2 17 CFR 240.19b–4. 

3The Commission approved Nasdaq Rule 5735 in 

Securities Exchange Act Release No. 57962 (June 

13, 2008) 73 FR 35175 (June 20, 2008) (SR– 

NASDAQ–2008–039). There are already multiple 

actively-managed funds listed on the Exchange; see 

e.g., Securities Exchange Act Release No. 72411 

(June 17, 2014), 79 FR 35598 (June 23, 2014) (SR– 

NASDAQ–2014–40) (order approving listing and 

trading of Calamos Focus Growth ETF). The 

Exchange believes the proposed rule change raises 

no significant issues not previously addressed in 

those prior Commission orders. 

4A Managed Fund Share is a security that 

represents an interest in an investment company 

registered under the Investment Company Act of 

1940 (15 U.S.C. 80a–1) (the ‘‘1940 Act’’) organized 

as an open-end investment company or similar 

entity that invests in a portfolio of securities 

selected by its investment adviser consistent with 

its investment objectives and policies. In contrast, 

an open-end investment company that issues Index 

Fund Shares, listed and traded on the Exchange 

under Nasdaq Rule 5705, seeks to provide 

investment results that correspond generally to the 

price and yield performance of a specific foreign or 

domestic stock index, fixed income securities index 

or combination thereof. 

5The Commission has issued an order granting 

certain exemptive relief to the Trust under the 1940 

Act (the ‘‘Exemptive Order’’). See Investment 

Company Act Release No. 30607 (July 23, 2013). In 

compliance with Nasdaq Rule 5735(b)(5), which 

applies to Managed Fund Shares based on an 

international or global portfolio, the Trust’s 

application for exemptive relief under the 1940 Act 

states that the Fund will comply with the federal 

securities laws in accepting securities for deposits 

and satisfying redemptions with redemption 

securities, including that the securities accepted for 

deposits and the securities used to satisfy 

redemption requests are sold in transactions that 

would be exempt from registration under the 

Securities Act of 1933 (15 U.S.C. 77a). 

6See Registration Statement on Form N–1A for 

the Trust filed on July 24, 2014 (File Nos. 333– 

187668 and 811–22819). The descriptions of the 

Fund and the Shares contained herein are based, in 

part, on information in the Registration Statement. 

7An investment adviser to an open-end fund is 

required to be registered under the Investment 

Advisers Act of 1940 (the ‘‘Advisers Act’’). As a 

result, the Adviser, the Sub-Adviser and their 

related personnel are subject to the provisions of 

Rule 204A–1 under the Advisers Act relating to 

codes of ethics. This Rule requires investment 

advisers to adopt a code of ethics that reflects the 

fiduciary nature of the relationship to clients as 

well as compliance with other applicable securities 

laws. Accordingly, procedures designed to prevent 

the communication and misuse of non-public 

information by an investment adviser must be 

consistent with Rule 204A–1 under the Advisers 

Act. In addition, Rule 206(4)–7 under the Advisers 

Act makes it unlawful for an investment adviser to 

provide investment advice to clients unless such 

investment adviser has (i) adopted and 

implemented written policies and procedures 

reasonably designed to prevent violation, by the 

investment adviser and its supervised persons, of 

the Advisers Act and the Commission rules adopted 

thereunder; (ii) implemented, at a minimum, an 

annual review regarding the adequacy of the 

policies and procedures established pursuant to 

subparagraph (i) above and the effectiveness of their 

implementation; and (iii) designated an individual 

(who is a supervised person) responsible for 

administering the policies and procedures adopted 

under subparagraph (i) above. 

consider the matters raised in each 

docket. 

2. Pursuant to 39 U.S.C. 505, James F. 

Callow is appointed to serve as an 

officer of the Commission to represent 

the interests of the general public in 

these proceedings (Public 

Representative). 

3. Comments are due no later than 

January 7, 2015. 

4. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Shoshana M. Grove, 

Secretary. 

[FR Doc. 2014–30968 Filed 1–5–15; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73960; File No. SR– 

NASDAQ–2014–127] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change 

Relating to the Listing and Trading of 

the Shares of the Tuttle Tactical 

Management U.S. Core ETF of ETFis 

Series Trust I 

December 30, 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 December 

19, 2014, The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by Nasdaq. 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 

Nasdaq proposes to list and trade the 

shares of the Tuttle Tactical 

Management U.S. Core ETF (the 

‘‘Fund’’), a series of ETFis Series Trust 

I (the ‘‘Trust’’), under Nasdaq Rule 5735 

(‘‘Managed Fund Shares’’).3 The shares 

of the Fund are collectively referred to 

herein as the ‘‘Shares.’’ 

The text of the proposed rule change 

is available at http://

nasdaq.cchwallstreet.com/, at Nasdaq’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, 

Nasdaq included statements concerning 

the purpose of, and basis for, the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. 

Nasdaq 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 

The Exchange proposes to list and 

trade the Shares of the Fund under 

Nasdaq Rule 5735, which governs the 

listing and trading of Managed Fund 

Shares 4 on the Exchange. The Fund will 

be an actively managed exchange-traded 

fund (‘‘ETF’’). The Shares will be 

offered by the Trust, which was 

established as a Delaware statutory trust 

on September 20, 2012.5 The Trust is 

registered with the Commission as an 

investment company and has filed a 

registration statement on Form N–1A 

(‘‘Registration Statement’’) with the 

Commission.6 The Fund is a series of 

the Trust. 

Etfis Capital LLC will be the 

investment adviser (‘‘Adviser’’) to the 

Fund. Tuttle Tactical Management, LLC 

will be the investment sub-adviser 

(‘‘Sub-Adviser’’) to the Fund. ETF 

Distributors LLC (the ‘‘Distributor’’) will 

be the principal underwriter and 

distributor of the Fund’s Shares. The 

Bank of New York Mellon (‘‘BNY 

Mellon’’) will act as the administrator, 

accounting agent, custodian, and 

transfer agent to the Fund. 

Paragraph (g) of Rule 5735 provides 

that if the investment adviser to the 

investment company issuing Managed 

Fund Shares is affiliated with a brokerdealer, such investment adviser shall 

erect a ‘‘fire wall’’ between the 

investment adviser and the brokerdealer with respect to access to 

information concerning the composition 

and/or changes to such investment 

company portfolio.7 In addition, 

paragraph (g) further requires that 

personnel who make decisions on the 

open-end fund’s portfolio composition 

must be subject to procedures designed 

to prevent the use and dissemination of 

material, non-public information 

regarding the open-end fund’s portfolio. 

Rule 5735(g) is similar to Nasdaq Rule 

5705(b)(5)(A)(i); however, paragraph (g) 

in connection with the establishment of 

a ‘‘fire wall’’ between the investment 

adviser and the broker-dealer reflects 


tkelley on DSK3SPTVN1PROD with NOTICES