[Federal Register Volume 60, Number 244 (Wednesday, December 20, 1995)]
[Notices]
[Page 65703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30909]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36588; File No. SR-CBOE-95-63]
Self-Regulatory Organizations; Order Granting Approval to
Proposed Rule Change by the Chicago Board Options Exchange, Inc.,
Relating to Adoption of Rule 9.24 and an Interpretation With Respect to
Proposed Rule 9.24
December 13, 1995.
I. Introduction
On October 19, 1995, the Chicago Board Options Exchange, Inc.
(``CBOE'' or ``Exchange'') submitted to the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to adopt new Rule 9.24 and to add
Interpretation and Policy .01 thereunder with respect to the meaning
and administration of proposed Rule 9.24.
\1\ 15 U.S.C. 78s(b)(1) (1988).
\2\ 17 CFR 240.19b-4 (1994).
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The proposed rule change appeared in the Federal Register on
November 9, 1995.\3\ No comments were received on the proposed rule
change. This order approves the CBOE's proposal.
\3\ See Securities Exchange Act Release No. 36455 (November 3,
1995), 60 FR 56624 (November 9, 1995).
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II. Description
The proposed rule would require members and member organizations
that engage in telephone solicitations to maintain a centralized list
of persons who do not wish to receive telephone solicitations, and to
refrain from making telephone solicitations to persons named on such
list. The CBOE's proposal would also add an interpretation concerning
the meaning and administration of proposed Rule 9.24 as well as serve
as a reminder \4\ that members and member organizations are subject to
compliance with the relevant Federal Communications Commission
(``FCC'') and Commission rules relating to telemarketing practices.\5\
\4\ The Commission notes that the CBOE intends to include this
Interpretation in a Circular that will be distributed to members and
member organizations.
\5\ Pursuant to the Telephone Consumer Protection Act (1991),
the FCC developed rules to protect the rights of telephone consumers
while allowing legitimate telemarketing practices. The FCC rules
include a requirement that a person or entity making telephone
solicitations must maintain a do-not-call list. In addition, the
Telemarketing and Consumer Fraud and Abuse Prevention Act (1994)
(``Prevention Act''), requires the Federal Trade Commission
(``FTC'') to adopt rules on abusive cold calling. The Prevention Act
also requires the Commission to engage in its own rulemaking or,
alternatively, to require the self-regulatory organizations to
promulgate telemarketing rules consistent with the legislation.
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III. Discussion
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange, and, in
particular, with the requirements of Section 6(b).\6\ Specifically, the
Commission believes that the proposal is consistent with the Section
6(b)(5) requirement that the rules of an exchange be designed to
prevent fraudulent and manipulative acts and practices. Proposed Rule
9.24 and the interpretation thereunder require a specific practice, the
maintenance of a do-not-call list. The purpose of maintaining such a
list is to prevent members and member organizations from engaging in
such manipulative acts as persistently calling investors who have
expressed a desire not to receive telephone solicitations.
\6\ 15 U.S.C. 78f(b) (1988).
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The Commission also believes that the proposal is consistent with
the Section 6(b)(5) requirement that the rules of an exchange be
designed to protect investors and the public interest. Proposed Rule
9.24 and the interpretation thereunder protect investors and the public
interest by enforcing members' and member organizations' compliance
with investors' desire not to receive such calls. In addition, the
proposed interpretation reminds members and member organizations that
they are subject to the requirements of the rules of the FCC and the
Commission relating to telemarketing practices and the rights of
telephone consumers.
IV. Conclusion
For the foregoing reasons, the Commission finds that the CBOE's
proposal to adopt a new rule concerning telephone solicitation and
record-keeping is consistent with the requirements of the Act and the
rules and regulations thereunder.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-CBOE-95-63) is approved.
\7\ 15 U.S.C. 78s(b)(2) (1988).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
\8\ 17 CFR 200.30-3(a)(12) (1994).
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Jonathan G. Katz,
Secretary.
[FR Doc. 95-30909 Filed 12-19-95; 8:45 am]
BILLING CODE 8010-01-M
