Federal Register / Vol. 60, No. 244 / Wednesday, December 20, 1995 / Notices 65703

1 15 U.S.C. 78s(b)(1) (1988).

2 17 CFR 240.19b–4 (1994).

3See Securities Exchange Act Release No. 36455

(November 3, 1995), 60 FR 56624 (November 9,

1995).

4The Commission notes that the CBOE intends to

include this Interpretation in a Circular that will be

distributed to members and member organizations.

5Pursuant to the Telephone Consumer Protection

Act (1991), the FCC developed rules to protect the

rights of telephone consumers while allowing

legitimate telemarketing practices. The FCC rules

include a requirement that a person or entity

making telephone solicitations must maintain a donot-call list. In addition, the Telemarketing and

Consumer Fraud and Abuse Prevention Act (1994)

(‘‘Prevention Act’’), requires the Federal Trade

Commission (‘‘FTC’’) to adopt rules on abusive cold

calling. The Prevention Act also requires the

Commission to engage in its own rulemaking or,

alternatively, to require the self-regulatory

organizations to promulgate telemarketing rules

consistent with the legislation.

6 15 U.S.C. 78f(b) (1988).

7 15 U.S.C. 78s(b)(2) (1988).

8 17 CFR 200.30–3(a)(12) (1994).

1 15 U.S.C. § 78s(b)(1).

2 17 CFR 240.19b–4.

3 In a cross transaction, a member or member

organization that holds an order to buy and an order

to sell an equivalent amount of the same security

executes the orders against each other.

4See letter from David Rusoff, Foley & Lardner,

to Glen Barrentine, Team Leader, SEC, dated

Continued

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

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, N.W.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the Exchange. All submissions

should refer to File No. SR–Amex–95–

49 and should be submitted by January

10, 1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 95–30856 Filed 12–19–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–36588; File No. SR–CBOE–

95–63]

Self-Regulatory Organizations; Order

Granting Approval to 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

December 13, 1995.

I. Introduction

On October 19, 1995, the Chicago

Board Options Exchange, Inc. (‘‘CBOE’’

or ‘‘Exchange’’) submitted to the

Securities and Exchange Commission

(‘‘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 9.24 and to add

Interpretation and Policy .01 thereunder

with respect to the meaning and

administration of proposed Rule 9.24.

The proposed rule change appeared in

the Federal Register on November 9,

1995.3 No comments were received on

the proposed rule change. This order

approves the CBOE’s proposal.

II. Description

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 CBOE’s

proposal would also add an

interpretation concerning the meaning

and administration of proposed Rule

9.24 as well as serve as a reminder 4 that

members and member organizations are

subject to compliance with the relevant

Federal Communications Commission

(‘‘FCC’’) and Commission rules relating

to telemarketing practices.5

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).6

Specifically, the Commission believes

that 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. Proposed Rule 9.24

and the interpretation thereunder

require a specific practice, the

maintenance of a do-not-call list. The

purpose of maintaining such a list is to

prevent members and member

organizations from engaging in such

manipulative acts as persistently calling

investors who have expressed a desire

not to receive telephone solicitations.

The Commission also believes that the

proposal is consistent with the Section

6(b)(5) requirement that the rules of an

exchange be designed to protect

investors and the public interest.

Proposed Rule 9.24 and the

interpretation thereunder protect

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 Commission relating

to telemarketing practices and the rights

of telephone consumers.

IV. Conclusion

For the foregoing reasons, the

Commission finds that the CBOE’s

proposal to adopt a new rule concerning

telephone solicitation and recordkeeping is consistent with the

requirements of the Act and the rules

and regulations thereunder.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,7 that the

proposed rule change (SR–CBOE–95–

63) is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Jonathan G. Katz,

Secretary.

[FR Doc. 95–30909 Filed 12–19–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–36590; File No. SR–CHX–

95–24]

Self-Regulatory Organizations;

Chicago Stock Exchange,

Incorporated; Order Granting Approval

to Proposed Rule Change Relating to

Agency Crosses Between the

Disseminated Exchange Market

December 13, 1995.

On October 11, 1995, the Chicago

Stock Exchange, Incorporated (‘‘CHX’’

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 relating to the execution of

agency cross transactions at a price

between the disseminated Exchange

market.3 On October 17, 1995, the

Exchange submitted Amendment No. 1

to the proposed rule change.4