New Postal Product, 539-540 [2014-30968]

Download as PDF Federal Register / Vol. 80, No. 3 / Tuesday, January 6, 2015 / Notices POSTAL REGULATORY COMMISSION [Docket Nos. MC2015–23 and CP2015–29; Order No. 2314] New Postal Product Postal Regulatory Commission. Notice. AGENCY: ACTION: 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: SUMMARY: Table of Contents I. Introduction II. Notice of Commission Action III. Ordering Paragraphs tkelley on DSK3SPTVN1PROD with NOTICES 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 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). 4 Request 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). VerDate Sep<11>2014 19:38 Jan 05, 2015 Jkt 235001 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. 5 The 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). PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 539 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 6 See E:\FR\FM\06JAN1.SGM Order No. 1959. 06JAN1 540 Federal Register / Vol. 80, No. 3 / Tuesday, January 6, 2015 / Notices 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 The 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 tkelley on DSK3SPTVN1PROD with NOTICES 2 17 VerDate Sep<11>2014 19:38 Jan 05, 2015 Jkt 235001 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 Exchange believes the proposed rule change raises no significant issues not previously addressed in those prior Commission orders. 4 A 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. 5 The 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). PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 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 6 See 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. 7 An 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. E:\FR\FM\06JAN1.SGM 06JAN1

Agencies

[Federal Register Volume 80, Number 3 (Tuesday, January 6, 2015)]
[Notices]
[Pages 539-540]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-30968]



[[Page 539]]

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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2015-23 and CP2015-29; Order No. 2314]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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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-Non-Published 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.
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    \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-Non-Published 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).
    \4\ Request of the United States Postal Service to Add Global 
Expedited Package Services--Non-Published 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).
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    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.
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    \5\ The 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).
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    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\
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    \6\ See Order No. 1959.
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    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

[[Page 540]]

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