[Federal Register Volume 61, Number 218 (Friday, November 8, 1996)]
[Notices]
[Pages 57937-57938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28699]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37897; File No. SR-PSE-96-32]


Self-Regulatory Organizations; the Pacific Stock Exchange 
Incorporated; Order Granting Approval to Proposed Rule Change Relating 
to Its Rules on Telephone Solicitations

October 30, 1996.
    On August 27, 1996, the Pacific Stock Exchange Incorporated 
(``PSE'' 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 9.20(b) and to 
add a commentary thereunder with respect to

[[Page 57938]]

the meaning and administration of proposed Rule 9.20(b).
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    \1\ 15 U.S.C. Sec. 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. 37703 (Sept. 19, 1996), 61 FR 50527 (Sept. 26, 
1996). No comments were received on the proposal.

I. Background

    In 1994, an industry Task Force, comprised of representatives from 
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 
consumers. One of the requirements contained in this regulatory 
framework 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.

II. 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, and to 
refrain from making telephone solicitations to persons named on such 
list. The NYSE, NASD, the CBOE, and the AMEX also adopted similar 
rules.\3\ The proposal also would add a commentary to serve as a 
reminder that members and member organizations are subject to 
compliance with the relevant Federal Communications Commission 
(``FCC'') and Commission Rules relating to telemarketing practices.
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    \3\ 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); and 
36748 (Jan. 19, 1996), 61 FR 2556 (approving File No. SR-AMEX-96-
01).
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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).\4\ In particular, 
the Commission believes that the proposal is consistent with the 
Section 6(b)(5) requirements that the rules of an exchange be designed 
to promote just and equitable principles of trade, to prevent 
fraudulent and manipulative acts, and, in general, to protect investors 
and the public, by addressing the practices of Exchange members and 
member organizations who make telemarketing calls. The purpose of the 
proposal is to prevent members and member organizations from engaging 
in manipulative acts, such as persistently calling investors who have 
expressed a desire not to receive telephone solicitations. The 
Commission believes that by requiring members and member organizations 
to maintain centralized do-not-call lists, members of the public who 
have indicated a desire not to receive telemarketing calls will be 
protected against abusive telemarketing practices. The Commission also 
believes that the proposed commentary 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.
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    \4\ 15 U.S.C. Sec. 78s(b).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\5\ that the proposed rule change (SR-PSE-96-32) is approved.

    \5\ 15 U.S.C. Sec. 78f(b)(2).
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 96-28699 Filed 11-7-96; 8:45 am]
BILLING CODE 8010-01-M