Self-Regulatory Organizations; New York Stock Exchange LLC.; Order Approving Proposed Rule Change To Amend NYSE Rule 440A (“Telephone Solicitations”), 27610-27611 [E7-9366]

Download as PDF 27610 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Notices 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 the 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–NFA–2007–02 and should be submitted on or before June 6, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–9371 Filed 5–15–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55735; File No. SR–NYSE– 2007–06] Self-Regulatory Organizations; New York Stock Exchange LLC.; Order Approving Proposed Rule Change To Amend NYSE Rule 440A (‘‘Telephone Solicitations’’) cprice-sewell on PROD1PC66 with NOTICES May 10, 2007. I. Introduction On January 25, 2007, the New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with 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 amend Rule 440A, addressing member organizations’ telephone solicitations of customers. The proposed rule change was published for comment in the Federal Register on March 29, 2007.3 The Commission received no comments 7 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Exchange Act Release No. 55517 (Mar. 23, 2007), 72 FR 14842 (Mar. 29, 2007). 1 15 VerDate Aug<31>2005 15:27 May 15, 2007 Jkt 211001 on the proposal. This order approves the proposed rule change. II. Description of the Proposal NYSE Rule 440A generally addresses member organizations’ telephone solicitations of customers. Rule 440A(g) provides ‘‘No member or member organization may use a telephone facsimile machine, computer or other device to send an unsolicited advertisement to a telephone facsimile machine, computer or other device.’’ Subsection 440A(g)(1) further provides that a facsimile advertisement is not ‘‘unsolicited’’ where the recipient has granted the member organization prior express invitation or permission to deliver the advertisement, as further defined in the Rule. This proposed rule change provided that such an advertisement also will not be considered ‘‘unsolicited’’ where there is an ‘‘established business relationship’’ as defined in the present Rule 440A(j). In addition, the Exchange proposed to delete the term ‘‘member’’ as used in the Rule to reflect the recent reorganization of the Exchange,4 and the term ‘‘allied member’’ as redundant within the context of the present regulation. The amendments to Rule 440A(g) were adopted by the Exchange on December 2, 2004 5 to incorporate regulations issued by the Federal Communications Commission (‘‘FCC’’) and the Federal Trade Commission (‘‘FTC’’) relating to the implementation of the National Do Not Call registry and the amendments to the Telephone Consumer Protection Act of 1991.6 The FCC and FTC regulations contained no exception for facsimiles sent to customers with which a broker-dealer had an ‘‘established business relationship’’ as such term was defined. Subsequently, Congress passed legislation 7 which restored an exemption for unsolicited faxes sent to a recipient with whom the sender had an established business relationship. Accordingly, the proposed amendments to NYSE Rule 440A(g)(1) added an exception for established business relationships to the definition of ‘‘unsolicited’’ and set forth the measures necessary for a customer to opt out of the receipt of further communications. These standards, which are taken from 4 See Exchange Act Release No. 53382 (Feb. 27, 2006), 71 FR 11251 (Mar. 6, 2006) (SR–NYSE–2005– 77). 5 See Exchange Act Release No. 34–52579 (Oct. 7, 2005), 70 FR 60119 (Oct. 14, 2005) (SR–NYSE– 2004–73). 6 Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991, FCC 03–153 (Jun. 26, 2003), 68 FR 44144 (Jul. 25, 2003). 7 Junk Fax Prevention Act of 2005, Pub. L. 109– 21, 119 Stat. 359 (2005). PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 applicable FCC regulations,8 generally require that the member organization and the person not only have an established business relationship,9 but also that the member organization obtain the fax number from the recipient (or the recipient’s web site, directory, or advertisement). Further, the recipient must not have stated on those materials that they do not accept unsolicited advertisements at the listed number. Under the proposed rule change, the member organization must also take reasonable steps to verify that the recipient consented to have the number listed. III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the Act and, in particular, with Section 6(b)(5) of the Act, which requires, among other things, that the NYSE’s rules be designed to promote just and equitable principles of trade, and, in general, to protect investors and the public interest.10 The Commission believes that in bringing the NYSE’s Rule setting forth the definition and treatment of unsolicited telemarketing communications into concurrence with FCC regulations, the proposed rule change will harmonize currently disparate regulations and therefore provide greater clarity, both to members and customers, as to which communications between members and customers qualify as ‘‘unsolicited.’’ 11 IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act 12 that the proposed rule change (SR–NYSE–2007– 06), be, and hereby is, approved. 8 FCC 06–42 (Apr. 5, 2006), 71 FR 56893 (Sept. 28, 2006). 9 An established business relationship is defined as a prior existing relationship formed by voluntary two-way communication between a member organization and a person where the person has, generally speaking, done business with the member organization within the 18 months preceding the telephone call, the member organization is the broker-dealer of record for the person’s account within those 18 months, or the person has contacted the member organization to inquire about a product or service within the three months preceding the telephone call. 10 15 U.S.C. 78f(b)(5). 11 In approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 12 15 U.S.C. 78s(b)(2). E:\FR\FM\16MYN1.SGM 16MYN1 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Notices For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–9366 Filed 5–15–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55738; File No. SR– NYSEArca–2007–17] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of a Proposed Rule Change To Waive 2007 Annual Listing Fees for Certain Dually-Listed Issuers Who Delist During 2007 May 10, 2007. I. Introduction On March 6, 2007, NYSE Arca, Inc. (‘‘Exchange’’) filed with 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 waive 2007 annual listing fees for certain issuers listed on the Exchange. The proposed rule change was published for comment in the Federal Register on April 5, 2007.3 The Commission received no comments on the proposal. This order approves the proposed rule change. II. Description of the Proposal The Exchange, through its whollyowned subsidiary NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’), proposes to waive 2007 annual listing fees for any issuers, who, as of January 1, 2007, were dually-listed on NYSE Arca Equities and another securities exchange, provided that such dually-listed issuers provide notice to the Exchange by June 30, 2007 of their intention to voluntarily withdraw listing from NYSE Arca Equities and that such dually-listed issuers withdraw listing before December 31, 2007. cprice-sewell on PROD1PC66 with NOTICES III. Discussion After a careful review of the proposed rule change, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the regulations thereunder applicable to a 13 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 55564 (March 30, 2007), 72 FR 16844. 1 15 VerDate Aug<31>2005 15:27 May 15, 2007 Jkt 211001 national securities exchange.4 In particular, the Commission believes that the proposed rule change is consistent with Section 6(b)(4) of the Act,5 which requires that the rules of an exchange provide for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facilities or system which it operates or controls. The Commission notes that the Exchange increased its annual listing fees substantially as of January 1, 2007.6 The Exchange represented that as a result, many dually-listed issuers notified the Exchange of their intent to voluntarily delist from NYSE Arca Equities prior to January 1, 2007. Some dually-listed issuers, however, were unable to voluntarily delist by January 1, 2007, due to their administrative or corporate governance process. The proposal will permit such dually-listed issuers, as well as any other duallylisted issuers who comply with the proposal’s requirements, a reasonable period of time to comply with their administrative or corporate governance process to voluntarily delist from NYSE Arca Equities without paying the higher 2007 annual listing fees. The Commission believes that it is appropriate to waive the 2007 annual listing fees for the withdrawing duallylisted issuers because these issuers fully intend to withdraw their listing, must withdraw by December 31, 2007, and are already listed on another national securities exchange. Based on the above, the Commission believes that such waiver is consistent with the requirements of the Act. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–NYSEArca– 2007–17) be, and hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 J. Lynn Taylor, Assistant Secretary. [FR Doc. E7–9411 Filed 5–15–07; 8:45 am] BILLING CODE 8010–01–P 4 In approving the proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 5 15 U.S.C. 78f(b)(4). 6 See Securities Exchange Act Release No. 54007 (June 16, 2006), 71 FR 36155 (June 23, 2006) (SR– PCX–2006–16). 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(12). PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 27611 SMALL BUSINESS ADMINISTRATION SBA Lender Risk Rating System Small Business Administration. Final notice. AGENCY: ACTION: SUMMARY: This final notice implements the Small Business Administration’s (SBA’s) risk rating system (Risk Rating System) as an internal tool to assist SBA in assessing the risk of each active 7(a) Lender’s and Certified Development Company’s (CDC’s) SBA loan operations and loan portfolio. The Risk Rating System will enable SBA to monitor 7(a) Lenders and CDCs (collectively, ‘‘SBA Lenders’’) on a uniform basis and identify those institutions whose SBA loan operations and portfolio require additional SBA monitoring or other action. It is also a vehicle for assessing the aggregate strength of SBA’s 7(a) and 504 portfolios. Under the Risk Rating System, SBA will assign each SBA Lender a composite rating based on certain portfolio performance factors, which may be overridden in some cases due to SBA Lender specific factors that may be indicative of a higher or lower level of risk. SBA Lenders will have access to their own ratings through SBA’s Lender Portal (Portal). DATES: This notice is effective June 15, 2007. FOR FURTHER INFORMATION CONTACT: Bryan Hooper, Director, Office of Lender Oversight, U.S. Small Business Administration, 409 Third Street, SW., Washington, DC 20416, (202) 205–3049. SUPPLEMENTARY INFORMATION: Background Information On May 1, 2006, SBA published a notice and request for comment in the Federal Register seeking comments on a proposed SBA internal Risk Rating System for assessing an SBA Lender’s SBA loan portfolio (i.e., loan portfolio performance). 71 FR 25624 Notice. SBA published a subsequent notice extending the comment period for the proposed Risk Rating System to July 15, 2006. 71 FR 34674. The Risk Rating System is an internal tool that uses data in SBA’s Loan and Lender Monitoring System (L/LMS) to assist SBA in assessing the risk of an SBA Lender’s SBA loan performance on a uniform basis and identify those SBA Lenders whose portfolio performance demonstrate the need for additional SBA monitoring or other action. The Risk Rating System will also serve as a vehicle to measure the aggregate strength of SBA’s overall 7(a) and 504 loan portfolios and to assist SBA in managing the related risk. In addition, SBA will use risk ratings to make more E:\FR\FM\16MYN1.SGM 16MYN1

Agencies

[Federal Register Volume 72, Number 94 (Wednesday, May 16, 2007)]
[Notices]
[Pages 27610-27611]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-9366]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55735; File No. SR-NYSE-2007-06]


Self-Regulatory Organizations; New York Stock Exchange LLC.; 
Order Approving Proposed Rule Change To Amend NYSE Rule 440A 
(``Telephone Solicitations'')

 May 10, 2007.

I. Introduction

    On January 25, 2007, the New York Stock Exchange LLC (``NYSE'' or 
the ``Exchange'') filed with 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 amend Rule 440A, addressing member 
organizations' telephone solicitations of customers. The proposed rule 
change was published for comment in the Federal Register on March 29, 
2007.\3\ The Commission received no comments on the proposal. This 
order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Exchange Act Release No. 55517 (Mar. 23, 2007), 72 FR 
14842 (Mar. 29, 2007).
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II. Description of the Proposal

    NYSE Rule 440A generally addresses member organizations' telephone 
solicitations of customers. Rule 440A(g) provides ``No member or member 
organization may use a telephone facsimile machine, computer or other 
device to send an unsolicited advertisement to a telephone facsimile 
machine, computer or other device.'' Subsection 440A(g)(1) further 
provides that a facsimile advertisement is not ``unsolicited'' where 
the recipient has granted the member organization prior express 
invitation or permission to deliver the advertisement, as further 
defined in the Rule. This proposed rule change provided that such an 
advertisement also will not be considered ``unsolicited'' where there 
is an ``established business relationship'' as defined in the present 
Rule 440A(j). In addition, the Exchange proposed to delete the term 
``member'' as used in the Rule to reflect the recent reorganization of 
the Exchange,\4\ and the term ``allied member'' as redundant within the 
context of the present regulation.
---------------------------------------------------------------------------

    \4\ See Exchange Act Release No. 53382 (Feb. 27, 2006), 71 FR 
11251 (Mar. 6, 2006) (SR-NYSE-2005-77).
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    The amendments to Rule 440A(g) were adopted by the Exchange on 
December 2, 2004 \5\ to incorporate regulations issued by the Federal 
Communications Commission (``FCC'') and the Federal Trade Commission 
(``FTC'') relating to the implementation of the National Do Not Call 
registry and the amendments to the Telephone Consumer Protection Act of 
1991.\6\ The FCC and FTC regulations contained no exception for 
facsimiles sent to customers with which a broker-dealer had an 
``established business relationship'' as such term was defined. 
Subsequently, Congress passed legislation \7\ which restored an 
exemption for unsolicited faxes sent to a recipient with whom the 
sender had an established business relationship. Accordingly, the 
proposed amendments to NYSE Rule 440A(g)(1) added an exception for 
established business relationships to the definition of ``unsolicited'' 
and set forth the measures necessary for a customer to opt out of the 
receipt of further communications. These standards, which are taken 
from applicable FCC regulations,\8\ generally require that the member 
organization and the person not only have an established business 
relationship,\9\ but also that the member organization obtain the fax 
number from the recipient (or the recipient's web site, directory, or 
advertisement). Further, the recipient must not have stated on those 
materials that they do not accept unsolicited advertisements at the 
listed number. Under the proposed rule change, the member organization 
must also take reasonable steps to verify that the recipient consented 
to have the number listed.
---------------------------------------------------------------------------

    \5\ See Exchange Act Release No. 34-52579 (Oct. 7, 2005), 70 FR 
60119 (Oct. 14, 2005) (SR-NYSE-2004-73). .
    \6\ Rules and Regulations Implementing the Telephone Consumer 
Protection Act of 1991, FCC 03-153 (Jun. 26, 2003), 68 FR 44144 
(Jul. 25, 2003).
    \7\ Junk Fax Prevention Act of 2005, Pub. L. 109-21, 119 Stat. 
359 (2005).
    \8\ FCC 06-42 (Apr. 5, 2006), 71 FR 56893 (Sept. 28, 2006).
    \9\ An established business relationship is defined as a prior 
existing relationship formed by voluntary two-way communication 
between a member organization and a person where the person has, 
generally speaking, done business with the member organization 
within the 18 months preceding the telephone call, the member 
organization is the broker-dealer of record for the person's account 
within those 18 months, or the person has contacted the member 
organization to inquire about a product or service within the three 
months preceding the telephone call.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the Act and, in particular, with Section 
6(b)(5) of the Act, which requires, among other things, that the NYSE's 
rules be designed to promote just and equitable principles of trade, 
and, in general, to protect investors and the public interest.\10\ The 
Commission believes that in bringing the NYSE's Rule setting forth the 
definition and treatment of unsolicited telemarketing communications 
into concurrence with FCC regulations, the proposed rule change will 
harmonize currently disparate regulations and therefore provide greater 
clarity, both to members and customers, as to which communications 
between members and customers qualify as ``unsolicited.'' \11\
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    \10\ 15 U.S.C. 78f(b)(5).
    \11\ In approving this proposed rule change, the Commission 
notes that it has considered the proposed rule's impact on 
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\12\ that the proposed rule change (SR-NYSE-2007-06), be, and hereby 
is, approved.
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    \12\ 15 U.S.C. 78s(b)(2).


[[Page 27611]]


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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-9366 Filed 5-15-07; 8:45 am]
BILLING CODE 8010-01-P