Self-Regulatory Organizations; New York Stock Exchange, Inc., Order Approving Proposed Rule Change and Amendment Nos. 1 and 2 Thereto To Amend NYSE Rule 440A Relating to Telephone Solicitation, 60119-60120 [E5-5652]
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Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Notices
name, absent instruction from the
beneficial holder of the shares, on any
proposal to obtain shareholder approval
required by the 1940 Act of an
investment advisory contract between
an investment company and a new
investment adviser due to an
assignment of the investment company’s
investment advisory contract, including
an assignment caused by a change in
control of the investment adviser that is
party to the assigned contract.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements under Section 6(b)(5)
of the Act 8 that an exchange have rules
that are 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.
B. Self-Regulatory Organization’s
Statement on 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 Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and paragraph (f)(1) of Rule
19b–4 thereunder 10 as constituting a
stated policy, practice, or interpretation
with respect to the meaning,
administration, or enforcement of an
existing Exchange rule. At any time
within 60 days of the filing of the
proposed rule change, the Commission
may summarily abrogate 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
Act.11
8 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(1).
11 The effective date of the original proposed rule
change is September 2, 2005 and the effective date
of Amendment No. 2 is September 28, 2005. For
9 15
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IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2005–61 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303. All submissions should
refer to File Number SR–NYSE–2005–
61. This file number should be included
on the subject line if e-mail 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
(https://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 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 in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. 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
Number SR–NYSE–2005–61 and should
be submitted on or before November 4,
2005.
purposes of calculating the 60-day period within
which the Commission may summarily abrogate the
proposed rule change, as amended, under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on September 28, 2005, the
date on which the Exchange submitted Amendment
No. 2. See 15 U.S.C. 78s(b)(3)(C).
Frm 00060
Fmt 4703
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–5646 Filed 10–13–05; 8:45 am]
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COMMISSION
Electronic Comments
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60119
Sfmt 4703
[Release No. 34–52579; File No. SR–NYSE–
2004–73]
Self-Regulatory Organizations; New
York Stock Exchange, Inc., Order
Approving Proposed Rule Change and
Amendment Nos. 1 and 2 Thereto To
Amend NYSE Rule 440A Relating to
Telephone Solicitation
October 7, 2005.
On December 30, 2004, the New York
Stock Exchange, Inc. (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’), pursuant to Section
19(b)(1) 1 of the Securities Exchange Act
of 1934 (‘‘Exchange Act’’),2 and Rule
19b–4 thereunder,3 a proposed
amendment to NYSE Rule 440A relating
to telephone solicitation. On July 1,
2005, the NYSE filed Amendment No. 1
to the proposed rule change.4 On
August 11, 2005, the NYSE filed
Amendment No. 2 to the proposed rule
change.5 The proposed rule change, as
amended, was published for comment
in the Federal Register on August 25,
2005.6 The Commission received no
comments on the proposal. This order
approves the proposed rule change, as
amended.
NYSE Rule 440A currently provides
that no member, allied member or
employee of a member or member
organization shall make an outbound
telephone call to the residence of any
person for the purpose of soliciting the
purchase of securities or related services
at any time other than between 8 a.m.
and 9 p.m. local time at the called
person’s location without the prior
consent of the person; or make an
outbound telephone call to any person
for the purpose of soliciting the
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a et seq.
3 17 CFR 240.19b–4.
4 In Amendment No. 1, the NYSE proposed to
partially amend the text of proposed amended Rule
440A and made conforming and technical changes
to the original filing.
5 In Amendment No. 2, the NYSE proposed
additional changes to the text of proposed amended
Rule 440A and made additional changes to the
original filing.
6 See Securities Exchange Act Release No. 52308
(August 19, 2005), 70 FR 49961 (August 25, 2005).
1 15
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Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Notices
purchase of securities or related services
without disclosing promptly and in a
clear and conspicuous manner to the
called person the following information:
(1) The identity of the caller and the
member or member organization; (2) the
telephone number or address at which
the caller may be contacted; and (3) that
the purpose of the call is to solicit the
purchase of securities or related
services.
The proposed amendment to NYSE
Rule 440A would incorporate
regulations issued by the Federal
Communications Commission (‘‘FCC’’)
and the Federal Trade Commission
relating to the implementation of the
national do-not-call registry and the
amendments to the Telephone
Consumer Protection Act of 1991
(‘‘TCPA’’).7 The amendment would
delete current Rule 440A and replace it
with new language that incorporates the
requirements of the FCC regulation,
which is applicable to broker-dealers,
but retain those sections of current Rule
440A that remain relevant. The
proposed amended rule would generally
prohibit NYSE members, allied
members, and employees of members
and member organizations from making
telemarketing calls to people who have
registered on the national do-not-call
registry, while retaining time-of-day and
firm-specific do-not-call restrictions
similar to those contained in the current
rule.
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.8 In
particular, the Commission finds that
the proposed rule change is consistent
with Section 6(b)(5) of the Exchange
Act,9 of the Exchange Act. Section
6(b)(5) 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
7 Rules and Regulations Implementing the TCPA,
FCC 03–153, adopted June 26, 2003, 68 FR 44144
(July 25, 2003). The FCC rules address such diverse
topics as abandoned calls and calls made on behalf
of tax exempt non-profit organizations. The NYSE’s
proposed amendment does not contain these
provisions as such matters generally fall outside the
purview of the investor protection concerns
underlying the proposed rule change. Nevertheless,
members and member organizations are subject to
the FCC national do-not-call rules and must
therefore, comply with those provisions or risk
action by the FCC.
8 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).
9 15 U.S.C. 78f(b)(5).
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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 NYSE members,
allied members, and employees of
members and member organizations to
observe time-of-day restrictions on
telephone solicitations, maintain firmspecific 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 donot-call registry. The Commission also
believes that the proposed rule change,
as amended, establishes adequate
procedures to prevent NYSE members,
allied members, and employees of
members and member organizations
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.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–NYSE–2004–
73), as amended, be and is hereby
approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–5652 Filed 10–13–05; 8:45 am]
notice is hereby given that on
September 29, 2005, the Philadelphia
Stock Exchange, Inc. (‘‘Phlx’’ or
‘‘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. On October
3, 2005, the Phlx submitted Amendment
No. 1 to the proposed rule change.3 The
Phlx has designated this proposal as one
changing a fee imposed by the Phlx
under Section 19(b)(3)(A)(ii) of the Act 4
and Rule 19b–4(f)(2) thereunder,5 which
renders the proposal, as amended,
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to amend its equity
options payment for order flow program
in a number of ways, as described in
detail below.
A. Equity Option Payment for Order
Flow Program Prior to October 1, 2005
Pursuant to the Exchange’s payment
for order flow program in effect for
transactions settling on or after July 1,
2005,6 only orders that are delivered
electronically, over AUTOM, are
assessed a payment for order flow fee to
a Registered Options Trader (‘‘ROT’’) or
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52568; File No. SR–Phlx–
2005–58]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change and Amendment No. 1 Thereto
Relating to Its October 2005 Equity
Options Payment for Order Flow
Program
October 6, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
10 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
11 17
PO 00000
Frm 00061
Fmt 4703
Sfmt 4703
3 In Amendment No. 1, the Exchange revised the
proposed text to correct typographical errors
contained in the proposed Schedule of Fees and to
reflect that options on the Nasdaq-100 Index
Tracking StockSM are now traded under the symbol
‘‘QQQQ.’’
4 15 U.S.C. 78s(b)(3)(A)(ii).
5 17 CFR 240.19b–4(f)(2).
6 The program that took effect on July 1, 2005 is
a pilot program that is scheduled to expire on May
27, 2006, the same date the one-year pilot program
in connection with Directed Orders is due to expire.
See Securities Exchange Act Release Nos. 51759
(May 27, 2005), 70 FR 32860 (June 6, 2005) (SR–
Phlx–2004–91) and 52114 (July 22, 2005), 70 FR
44138 (August 1, 2005) (SR–Phlx–2004–44).
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[Federal Register Volume 70, Number 198 (Friday, October 14, 2005)]
[Notices]
[Pages 60119-60120]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5652]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52579; File No. SR-NYSE-2004-73]
Self-Regulatory Organizations; New York Stock Exchange, Inc.,
Order Approving Proposed Rule Change and Amendment Nos. 1 and 2 Thereto
To Amend NYSE Rule 440A Relating to Telephone Solicitation
October 7, 2005.
On December 30, 2004, the New York Stock Exchange, Inc. (``NYSE''
or ``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission''), pursuant to Section 19(b)(1) \1\ of the
Securities Exchange Act of 1934 (``Exchange Act''),\2\ and Rule 19b-4
thereunder,\3\ a proposed amendment to NYSE Rule 440A relating to
telephone solicitation. On July 1, 2005, the NYSE filed Amendment No. 1
to the proposed rule change.\4\ On August 11, 2005, the NYSE filed
Amendment No. 2 to the proposed rule change.\5\ The proposed rule
change, as amended, was published for comment in the Federal Register
on August 25, 2005.\6\ 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\ 15 U.S.C. 78a et seq.
\3\ 17 CFR 240.19b-4.
\4\ In Amendment No. 1, the NYSE proposed to partially amend the
text of proposed amended Rule 440A and made conforming and technical
changes to the original filing.
\5\ In Amendment No. 2, the NYSE proposed additional changes to
the text of proposed amended Rule 440A and made additional changes
to the original filing.
\6\ See Securities Exchange Act Release No. 52308 (August 19,
2005), 70 FR 49961 (August 25, 2005).
---------------------------------------------------------------------------
NYSE Rule 440A currently provides that no member, allied member or
employee of a member or member organization shall make an outbound
telephone call to the residence of any person for the purpose of
soliciting the purchase of securities or related services at any time
other than between 8 a.m. and 9 p.m. local time at the called person's
location without the prior consent of the person; or make an outbound
telephone call to any person for the purpose of soliciting the
[[Page 60120]]
purchase of securities or related services without disclosing promptly
and in a clear and conspicuous manner to the called person the
following information: (1) The identity of the caller and the member or
member organization; (2) the telephone number or address at which the
caller may be contacted; and (3) that the purpose of the call is to
solicit the purchase of securities or related services.
The proposed amendment to NYSE Rule 440A would incorporate
regulations issued by the Federal Communications Commission (``FCC'')
and the Federal Trade Commission relating to the implementation of the
national do-not-call registry and the amendments to the Telephone
Consumer Protection Act of 1991 (``TCPA'').\7\ The amendment would
delete current Rule 440A and replace it with new language that
incorporates the requirements of the FCC regulation, which is
applicable to broker-dealers, but retain those sections of current Rule
440A that remain relevant. The proposed amended rule would generally
prohibit NYSE members, allied members, and employees of members and
member organizations from making telemarketing calls to people who have
registered on the national do-not-call registry, while retaining time-
of-day and firm-specific do-not-call restrictions similar to those
contained in the current rule.
---------------------------------------------------------------------------
\7\ Rules and Regulations Implementing the TCPA, FCC 03-153,
adopted June 26, 2003, 68 FR 44144 (July 25, 2003). The FCC rules
address such diverse topics as abandoned calls and calls made on
behalf of tax exempt non-profit organizations. The NYSE's proposed
amendment does not contain these provisions as such matters
generally fall outside the purview of the investor protection
concerns underlying the proposed rule change. Nevertheless, members
and member organizations are subject to the FCC national do-not-call
rules and must therefore, comply with those provisions or risk
action by the FCC.
---------------------------------------------------------------------------
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.\8\
In particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(5) of the Exchange Act,\9\ of the Exchange
Act. Section 6(b)(5) 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
NYSE members, allied members, and employees of members and member
organizations 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 NYSE members, allied members, and employees of members and
member organizations 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.
---------------------------------------------------------------------------
\8\ 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).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (SR-NYSE-2004-73), as amended,
be and is hereby approved.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-5652 Filed 10-13-05; 8:45 am]
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