[Federal Register Volume 60, Number 74 (Tuesday, April 18, 1995)]
[Notices]
[Pages 19427-19428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9526]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35597; File No. SR-NYSE-95-11]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the New York Stock Exchange, Inc. Relating to Adoption of 
Rule 440A (``Telephone Solicitation--Recordkeeping'') and an 
Interpretation with Respect to Proposed Rule 440A

April 12, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. Sec. 78s(b)(1), notice is hereby given that on 
March 22, 1995, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I, II and III 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.

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The NYSE is herewith filing 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.

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to:
    (1) Adopt a rule requiring 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
    (2) Set forth an interpretation concerning the meaning and 
administration of proposed Rule 440A with respect to compliance with 
Federal Communications Commission (``FCC'') and SEC rules relating to 
telemarketing practices. It is intended that the interpretation will be 
published as an Interpretation Memorandum for inclusion in the Exchange 
Interpretation Handbook.
    In 1994, an industry Task Force, comprised of representatives from 
the Exchange, and other industry regulatory and self-regulatory 
organizations, was formed to review broker-dealer telemarketing 
practices and compliance with the Telephone Consumer Protection Act of 
1991 (``TCPA'') and the FCC rules and regulations implementing that 
law. The TCPA and FCC rules address telemarketing practices and the 
rights of telephone customers. One of those requirements is that 
businesses (which includes 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 industry Task Force is considering several initiatives relating 
to broker-dealers that engage in telephone solicitation or ``cold-
calling'' activities. One such initiative is proposed Rule 440A which 
requires 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. 
It is anticipated that such a rule will also be adopted by other self-
regulatory organization participants of the Task Force.
    The proposed interpretation to Rule 440A reminds members and member 
organizations that they are subject to compliance with the requirements 
of the relevant rules of the FCC and SEC relating to telemarketing 
practices and the rights of telephone consumers.
2. Statutory Basis
    The proposed rule change is consistent with the requirements of 
Section 6(b)(5) of the Act, which requires that the rules of the 
Exchange be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, and, in 
general, to protect investors and the public interest, in that it 
addresses 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.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

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

    Within 35 days of the publication of this notice in the Federal 
Register or within such other period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved. [[Page 19428]] 

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, N.W., Washington, D.C. 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 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 at 
the Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office of the NYSE. All 
submissions should refer to File No. SR-NYSE-95-11 and should be 
submitted by May 9, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-9526 Filed 4-17-95; 8:45 am]
BILLING CODE 8010-01-M