Document ID: SEC-2006-0047-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2006-01-17T05:00Z

[Federal Register: January 17, 2006 (Volume 71, Number 10)]
[Notices]               
[Page 2604]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ja06-98]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53085; File No. SR-Amex-2005-064]

 
Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving Proposed Rule Change and Amendment Nos. 1 and 2 Thereto 
Relating to Telemarketing

January 9, 2006.
    On June 14, 2005, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC''), pursuant to section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed amendment to Amex Rule 429. On September 23, 
2005, the Amex filed Amendment No. 1 to the proposed rule change.\3\ On 
November 15, 2005, the Amex filed Amendment No. 2 to the proposed rule 
change.\4\ The proposed rule change, as amended, was published for 
comment in the Federal Register on December 5, 2005.\5\ The Commission 
received no comments on the proposal. This order approves the proposed 
rule change, as amended.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Amex partially amended the text of 
proposed amended Amex Rule 429 and made conforming and technical 
changes to the original filing.
    \4\ In Amendment No. 2, the Amex made additional changes to the 
text of proposed amended Amex Rule 429 and to the original filing.
    \5\ See Securities Exchange Act Release No. 52844 (November 28, 
2005), 70 FR 72477 (December 5, 2005).
---------------------------------------------------------------------------

    Amex Rule 429 currently prohibits members, member organizations and 
associated persons from making outbound calls to the residence of any 
person for the purposes of soliciting the purchase of securities or 
related services other than between the hours of 8 a.m. and 9 p.m., 
without the prior consent of the person. It also requires disclosure to 
the called person of the caller's identity, firm telephone number and 
address, and the purpose of the call. Rule 429 currently includes 
exceptions from its time of day and disclosure requirements for 
telephone calls to certain categories of existing customers.
    The proposed amendment to Amex Rule 429 would require Amex members 
and member organizations to participate in the national do-not-call 
registry maintained by the Federal Trade Commission (``FTC'') and to 
follow applicable regulations of the Federal Communications Commission 
(``FCC''). The amendment would delete current Rule 429 and replace it 
with new language that incorporates the requirements of FCC regulations 
applicable to broker-dealers engaged in telemarketing. The amended rule 
would generally prohibit Amex members, member organizations, and 
persons associated with a member or member organization from making 
telemarketing calls to people who have registered with the national do-
not-call registry. It also would set forth firm-specific do-not-call 
restrictions,\6\ and would retain time-of-day restrictions and 
disclosure requirements similar to those contained in current Rule 429.
---------------------------------------------------------------------------

    \6\ Amex Rule 428, which is not being amended, requires members 
and member organizations who engage in telephone solicitation to 
market their products and services to maintain a centralized do-not-
call list of persons who do not wish to receive telephone 
solicitations from such members or their associated persons.
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Exchange Act and the rules and 
regulations thereunder applicable to a national securities exchange.\7\ 
In particular, the Commission finds that the proposed rule change is 
consistent with section 6(b)(5) of the Exchange Act,\8\ which requires, 
among other things, that the rules of an exchange be designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and national 
market system, and in general, to protect investors and the public 
interest. The Commission believes that the proposed rule change, as 
amended, is designed to accomplish these ends by requiring Amex 
members, member organizations and associated persons to observe time-
of-day restrictions on telephone solicitations, maintain firm-specific 
do-not-call lists, and refrain from initiating telephone solicitations 
to investors and other members of the public who have registered their 
telephone numbers on the national do-not-call registry. The Commission 
also believes that the proposed rule change, as amended, establishes 
adequate procedures to prevent Amex members, member organizations and 
associated persons from making telephone solicitations to do-not-call 
registrants, which should have the effect of protecting investors by 
enabling persons who do not want to receive telephone solicitations 
from members or member organizations to receive the protections of the 
national do-not-call registry, while providing appropriate exceptions 
to the rule's restrictions, which should promote just and equitable 
principles of trade.
---------------------------------------------------------------------------

    \7\ In approving this proposed rule change, the Commission has 
considered whether the proposed rule change will promote efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-Amex-2005-064), as amended, 
be and is hereby approved.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-394 Filed 1-13-06; 8:45 am]

BILLING CODE 8010-01-P