[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] ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- 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). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- 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). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 95-14470 Filed 6-13-95; 8:45 am] BILLING CODE 8010-01-M