Document ID: SEC-2013-0416-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Stock Exchange, Inc.
Posted Date: 2013-03-01T05:00Z

[Federal Register Volume 78, Number 41 (Friday, March 1, 2013)]
[Notices]
[Pages 13919-13920]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-04788]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68908; File No. SR-CHX-2013-05]

Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending CHX Article 8, Rule 13, Which, Among Other Things, Prohibits 
Deceptive and Other Abusive Telemarketing Acts or Practices, To Correct 
a Citation Error

February 12, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Exchange Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby 
given that on February 1, 2013, the Chicago Stock Exchange, Inc. 
(``CHX'' or the ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the 
Exchange. CHX has filed this proposal pursuant to Exchange Act Rule 
19b-4(f)(6),\3\ which is effective upon filing with the Commission.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CHX proposes to amend CHX Article 8, Rule 13, which, among other 
things, prohibits deceptive and other abusive telemarketing acts or 
practices, to correct a citation error. The text of this proposed rule 
change is available on the Exchange's Web site at (www.chx.com) and in 
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CHX included statements 
concerning the purpose of and basis for the proposed rule changes 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. CHX 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 
Statutory Basis for, the Proposed Rule Changes

1. Purpose
    The Exchange proposes to amend Article 8, Rule 13 (Advertising, 
Promotion and Telemarketing), which, among other things, prohibits 
deceptive and other abusive telemarketing acts or practices. 
Specifically, the Exchange proposes to amend Article 8, Rule 
13(d)(1)(A), to correct a citation error.
    Currently, the Rule correctly provides that no Participant \4\ or 
person associated therewith shall initiate any outbound telephone call 
to any residence of a person before the hour of 8 a.m. or after 9 p.m. 
(local time at the called party's location), unless the Participant has 
an ``established business relationship'' with the person.\5\ However, 
the Rule incorrectly states that the term ``established business 
relationship'' is defined ``pursuant to paragraph (m)(12).'' Instead, 
the citation should refer to CHX Article 8, Rule 13(p)(12), which 
provides the definition for an ``established business relationship.'' 
\6\
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    \4\ See CHX Article 1, Rule 1(s).
    \5\ See CHX Article 8, Rule 13(d)(1)(A).
    \6\ CHX Article 8, Rule 13(p)(12) provides the following: ``12. 
The term ``established business relationship'' means a relationship 
between a Participant and a person if: (A) The person has made a 
financial transaction or has a security position, a money balance, 
or account activity with the Participant or at a clearing firm that 
provides clearing services to such Participant within the previous 
eighteen (18) months immediately preceding the date of the 
telemarketing call; (B) the Participant is the broker-dealer of 
record for an account of the person within the previous eighteen 
(18) months immediately preceding the date of the telemarketing 
call; or (C) the person has contacted the Participant to inquire 
about a product or service offered by the Participant within the 
previous three (3) months immediately preceding the date of the 
telemarketing call.''
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Exchange Act,\7\ in general, and furthers the objectives of 
Section 6(b)(5) of the Exchange Act,\8\ in particular, in that it is 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general, to protect investors and the public 
interest. The Exchange believes that the change proposed herein meets 
these requirements in that it corrects a citation error in a CHX rule 
that

[[Page 13920]]

establishes telemarketing guidelines, which promotes just and equitable 
principles of trade and removes impediments to, and perfects the 
mechanism of, a free and open market and a national market system and 
contributes to the protection of investors and the public interest.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement of Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Exchange Act. Specifically, the 
proposed change will not impose any burden on competition where the 
proposed change to correct a citation error does not substantively 
change the meaning or application of the telemarketing rules outlined 
under Article 8, Rule 13 and comports such rules with the telemarketing 
rules of other exchanges.

C. Self-Regulatory Organization's Statement on Comments Regarding the 
Proposed Rule Changes Received From Members, Participants or Others

    CHX neither solicited nor received written comments on the proposed 
rule change.

III. Date of Effectiveness of the Proposed Rule Changes and Timing for 
Commission Action

    The Exchange believes that the proposal qualifies for immediate 
effectiveness upon filing as a ``non-controversial'' rule change in 
accordance with Section 19(b)(3)(A) of the Exchange Act \9\ and Rule 
19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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    The Exchange asserts that the proposed rule change (i) does not 
significantly affect the protection of investors or the public 
interest, (ii) does not impose any significant burden on competition, 
and (iii) by its terms, does not become operative for 30 days after the 
date of this filing, or such shorter time as the Commission may 
designate, if consistent with the protection of investors and the 
public interest. In addition, the Exchange provided the Commission with 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at least 
five business days prior to the date of filing, or such shorter time as 
the Commission may designate.
    The Exchange believes that this proposal is non-controversial and 
eligible to become effective immediately because it corrects a citation 
error by amending the rule to correctly cite to an already existing 
rule. For the foregoing reasons, the Exchange believes that this rule 
filing qualifies for immediate effectiveness as a ``non-controversial'' 
rule change under paragraph (f)(6) of Rule 19b-4.\11\ The Exchange 
respectfully requests that the Commission to waive the 30-day operative 
delay and five-day notice requirement to allow the citation correction.
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    \11\ Id.
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend 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 Exchange Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal is 
consistent with the Exchange Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File No. SR-CHX-2013-05 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-CHX-2013-05. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 changes 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 Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of CHX.
    All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File No. SR-CHX-2013-05 and 
should be submitted on or before March 22, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-04788 Filed 2-28-13; 8:45 am]
BILLING CODE 8011-01-P