[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Notices]
[Pages 2555-2557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1360]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36748; File No. SR-Amex-96-01]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the American Stock Exchange,
Inc. Relating to the Adoption of Rule 428 (``Telephone Solicitation--
Recordkeeping'') and an Interpretation With Respect to Proposed Rule
428
January 19, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 4, 1996, the
American Stock Exchange, Inc. (``Amex'' or ``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 the self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to adopt new Rule 428 (``Telephone
Solicitation--Recordkeeping'') and a new interpretation thereunder
concerning telephone solicitation and recordkeeping.
The text of the proposed rule change is available at the Office of
the Secretary, the Amex, and at the Commission.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
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. The self-regulatory organization
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
In 1994, an industry Task Force, comprised of representatives from
the Commission, the New York Stock Exchange, Inc. (``NYSE''), and the
National Association of Securities Dealers, Inc. (``NASD'') was formed
to review broker-dealer telemarketing practices and compliance with the
Telephone Consumer Protection Act of 1991 (``TCPA''), the Federal
Communications Commission (``FCC'') rules and regulations implementing
that law, and the Telemarketing and Consumer Fraud and Abuse Act
(``Prevention Act''). The TCPA, FCC rules, and the Prevention Act
address telemarketing practices and the rights of telephone consumers.
One of the requirements contained in this regulatory framework is that
businesses, including broker-dealers, that make telephone solicitations
to residential telephone subscribers must institute written policies
and have procedures in place for maintaining ``do-not-call'' lists. The
Prevention Act also requires the Commission to engage in its own
additional rulemaking, or, alternatively, to require the self-
regulatory organizations (``SROs'') to promulgate telemarketing rules
consistent with the legislation.
After reviewing the TCPA, FCC rules, and the Prevention Act, the
Task Force recommended that the SROs adopt ``cold-calling'' rules. The
NYSE and NASD adopted such rules in June 1995, while the Chicago Board
Options Exchange adopted such a rule in December 1995.\2\ Similarly,
the Exchange is proposing to adopt new Rule 428 that will require
members and member organizations to make and maintain a centralized
list of persons who have informed the member or member organization
that they do not want to receive telephone solicitations. The proposed
interpretation to Rule 428 will be issued in an Information Circular
and will remind members and member organizations that they are subject
to compliance with the requirements of the relevant rules of the FCC
and the Commission relating to telemarketing practices and the rights
of telephone consumers.
\2\ See Securities Exchange Act Release Nos. 35821 (June 7,
1995), 60 FR 31337 (approving File No. SR-NYSE-95-11); 35831 (June
9, 1995), 60 FR 31527 (approving File No. SR-NASD-95-13); and 36588
(Dec. 13, 1995), 60 FR 56624 (approving File No. SR-CBOE-95-63).
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\3\ in general and furthers the objectives of Section 6(b)(5) \4\ in
particular because it is designed to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest, by addressing the practices of Exchange members and
member organizations who make telemarketing calls and the protection of
customers who have indicated a desire not to receive such calls.
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the proposed rule change will not impose any
burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
(3) does not become operative for thirty days from January 4, 1996, the
date on which it was filed, and the Exchange provided the Commission
with written notice of its intent to file the proposed rule change at
least five business days prior to the filing date, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-
4(e)(6) \6\ thereunder.
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(e)(6).
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At any time within sixty days of the filing of the proposed rule
change, the Commission may summarily abrogate 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.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
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
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Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. Sec. 552, will
be available for inspection and copying in the Commission's Public
Reference Room in Washington, DC. Copies of such filing also will be
available for inspection and copying at the principal office of the
Amex. All submissions should refer to File No. SR-Amex-96-01 and should
be submitted by February 16, 1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-1360 Filed 1-25-96; 8:45 am]
BILLING CODE 8010-01-M
