95-14470. Self-Regulatory Organizations; New York Stock Exchange, Inc.; Order Granting Approval to Proposed Rule Change Relating to Adoption of Rule 440A (``Telephone SolicitationRecordkeeping'') and an Interpretation With Respect to Proposed Rule ...

[Federal Register Volume 60, Number 114 (Wednesday, June 14, 1995)]
[Notices]
[Pages 31337-31338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14470]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35821; File No. SR-NYSE-95-11]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change Relating to Adoption of 
Rule 440A (``Telephone Solicitation--Recordkeeping'') and an 
Interpretation With Respect to Proposed Rule 440A

June 7, 1995.
    On March 22, 1995, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') submitted to the Securities and Exchange Commission 
(``SEC'' or ``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 440A 
(``Telephone Solicitation-Recordkeeping'') and to add an interpretation 
with respect to the meaning and administration of proposed Rule 440A.

    \1\15 U.S.C. 78s(b)(1).
    \2\17 CFR 240.19b-4.
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    The proposed rule change was published for comment in Securities 
Exchange Act Release No. 35597 (April 12, 1995), 60 FR 19427. No 
comments were received on the proposal.

I. Description of the Proposal

    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. The 
Exchange also proposes to add an interpretation concerning the meaning 
and administration of proposed Rule 440A with respect to compliance 
with the Federal Communications Commission (``FCC'') and SEC rules 
relating to telemarketing practices. The Exchange proposes to publish 
the interpretation as an Interpretation Memorandum for 

[[Page 31338]]
inclusion in the Exchange Interpretation Handbook.

II. 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).\3\ In particular, 
the Commission believes 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 in that it 
addresses the practices of Exchange members and member organizations 
who make telemarketing calls. Proposed Rule 440A and the interpretation 
concerning the meaning and administration of proposed Rule 440A, 
require a specific practice, the maintenance of a ``do-not-call'' list. 
The purpose of maintaining a ``do-not-call'' list is to prevent such 
manipulative acts by members and member organizations, such as 
persistent calls to investors who have expressed their desire not to 
receive telephone solicitations.

    \3\15 U.S.C. 78f(b).
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    The Commission also believes the proposal is consistent with the 
Section 6(b)(5) requirement to protect investors and the public 
interest. Proposed Rule 440A and the interpretation thereto, protects 
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 SEC relating to telemarketing practices and 
the rights of telephone consumers. For example, the FCC requires 
persons or entities making telephone solicitations to maintain a do-
not-call list for the purpose of any future telephone solicitations.\4\

    \4\47 CFR 64.1200.
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III. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\5\ that the proposed rule change (SR-NYSE-95-11) is approved.

    \5\15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\

    \6\17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-14470 Filed 6-13-95; 8:45 am]
BILLING CODE 8010-01-M