[Federal Register Volume 60, Number 217 (Thursday, November 9, 1995)]
[Notices]
[Pages 56624-56625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27824]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-36455; File No. SR-CBOE-95-63]


Self-Regulatory Organizations; Notice of Filing of 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

November 3, 1995.
    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 October 19, 1995, the Chicago Board Options Exchange, Inc. (``CBOE'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organzation. 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) (1988).
    \2\ 17 CFR 240.19b-4 (1994).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The CBOE proposes to adopt new Rule 9.24 and to add an 
Interpretation and Policy thereunder with respect to the meaning and 
administration of proposed Rule 9.24. The text of the proposed rule 
change is available at the Office of the Secretary, the Exchange, and 
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 CBOE 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 CBOE 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:
    (i) Adopt Rule 9.24 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 to 
refrain from making telephone solicitations to persons named on such 
list; and
    (ii) Set forth Interpretation and Policy .01 concerning the meaning 
and administration of proposed Rule 9.24 with respect to compliance 
with Federal Communications Commission (``FCC'') and Commission rules 
relating to telemarketing practices.\3\

    \3\ The CBOE notes that it intends to include this 
Interpretation and Policy in a Circular that will be distrubted to 
members and member organizations.
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    In 1994, an industry Task Force, comprised of representatives from 
various 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''), as well 
as with the FCC rules and regulations which implemented that law. The 
TCPA and FCC rules address telemarketing practices and the rights of 
telephone customers. One of the TCPA's requirements is that businesses, 
including broker-dealers, that make telephone solicitations to 
residential telephone subscribers institute written policies and have 
procedures in place for maintaining ``do-not-call'' lists. As 
recommended by the Task Force, proposed Rule 9.24 implements this 
requirement by obligating CBOE members to make and maintain a 
centralized list of persons who have informed the member that they do 
not wish to receive telephone solicitations.
    The proposed Interpretation to Rule 9.24 reminds members and member 
organizations that they are subject to compliance with the requirements 
of the relevant rules of the FCC and the 

[[Page 56625]]
Commission relating to telemarketing practices and the rights of 
telephone consumers.
2. Statutory Basis
    The CBOE believes that the proposed rule change is consistent with 
Section 6(b) of the Act in general, and with Section 6(b)(5) in 
particular,\4\ in that it proposes a rule that promotes just and 
equitable principles of trade, and that protects investors and the 
public interest.

    \4\ 15 U.S.C. 78f(b)(5) (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The CBOE does not believe that the proposed rule change will impose 
any inappropriate burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Other

    No written comments were solicited or received with respect to 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 CBOE 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.

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 Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for inspection and copying at the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing also will be available for 
inspection and copying at the principal office of the CBOE. All 
submissions should refer to File No. SR-CBOE-95-63 and should be 
submitted by November 30, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\

    \5\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-27824 Filed 11-8-95; 8:45 am]
BILLING CODE 8010-01-M