[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 

[[Page 2557]]
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