[Federal Register Volume 62, Number 20 (Thursday, January 30, 1997)]
[Notices]
[Pages 4553-4555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2257]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-38204; File No. SR-OPRA-97-1]


Options Price Reporting Authority; Notice of Filing and Immediate 
Effectiveness of Amendment to OPRA Fee Schedule Revising the Device-
Based Information Fees Payable by Professional Subscribers to OPRA's 
Basic Service and Implementing a New Enterprise Rate Professional 
Subscriber Fee as an Alternative to the Device-Based Fee

January 24, 1997.
    Pursuant to Rule 11Aa3-2 under the Securities Exchange Act of 1934 
(``Exchange Act''), notice is hereby given that on January 8, 1997, the 
Options Price Reporting Authority (``OPRA'') \1\ submitted to the 
Securities and Exchange Commission (``SEC'' or ``Commission'') an 
amendment to the Plan for Reporting of Consolidated Options Last Sale 
Reports and Quotation Information (``Plan''). The amendment revises the 
device-based information fees payable by professional subscribers to 
OPRA's basic service. Moreover, OPRA is establishing a new ``enterprise 
rate'' professional subscriber fee as an alternative to the device-
based fee applicable to members of OPRA's

[[Page 4554]]

participant exchanges. OPRA has designated this proposal as 
establishing or changing a fee or other charge collected on behalf of 
all of the OPRA participants in connection with access to or use of 
OPRA facilities, permitting the proposal to become effective upon 
filing pursuant to Rule 11Aa3-2(c)(3)(i) under the Exchange Act. The 
Commission is publishing this notice to solicit comments from 
interested persons on the amendment.
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    \1\ OPRA is a National Market System Plan approved by the 
Commission pursuant to Section 11A of the Exchange Act and Rule 
11Aa3-2 thereunder. Securities Exchange Act Release No. 17638 (Mar. 
18, 1981).
    The Plan provides for the collection and dissemination of last 
sale and quotation information on options that are traded on the 
five member exchanges. The five exchanges which agreed to the OPRA 
Plan are the American Stock Exchange (``AMEX''); the Chicago Board 
Options Exchange (``CBOE''); the New York Stock Exchange (``NYSE''); 
the Pacific Stock Exchange (``PSE''); and the Philadelphia Stock 
Exchange (``PHLX'').
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I. Description and Purpose of the Amendment

    The purpose of the amendment is to revise the fees payable to OPRA 
by professional subscribers for access to OPRA's basic service, which 
consists of market data and related information pertaining to equity 
and index options (``OPRA data'').\2\ Professional subscribers are 
those persons that subscribe to OPRA data and do not qualify for the 
reduced fees charged to nonprofessional subscribers. OPRA's 
professional subscriber fees were last revised in January 1996 pursuant 
to a Plan amendment that initially proposed a program of fee revisions 
to be implemented in stages over a four-year period.\3\ Subsequently, 
OPRA withdrew that filing and filed instead only the first stage of the 
fee revision program, with the understanding that the implementation of 
the remaining stages would be the subject of separate filings.\4\
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    \2\ Information pertaining to foreign currency options (FCOs) is 
provided through OPRA's FCO Service, which fees are not affected by 
this filing.
    \3\ See Securities Exchange Act Release No. 36364 (October 12, 
1995), 60 FR 54093 (October 19, 1995).
    \4\ See Securities Exchange Act Release No. 36817 (February 7, 
1996), 61 FR 5827 (February 14, 1996).
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    As was the case with the first stage, this amendment is intended to 
increase OPRA revenues derived from device-based subscriber fees by 
less than 5% in order to permit a greater share of the costs of 
collecting, consolidating, processing and transmitting OPRA data to be 
covered by these fees, while at the same time continuing the process of 
simplifying the structure of the professional subscriber fee by 
reducing the number of pricing tiers for purposes of the volume 
discount in the per device fee.
    The proposed changes in the level of OPRA's device-based 
professional subscriber fees will reduce the fees paid by smaller 
subscribers and increase the fees paid by larger subscribers.\5\ 
Subscriber having less than four devices will see their per device fees 
reduced by $11 per month, while subscribers having from four to nine 
devices will see no change in their fees. On the other hand, per device 
fees for larger subscribers that do not elect the alternative 
enterprise rate described below will increase by amounts ranging from 
$.35 to $.60 for members of OPRA's participant exchanges, with somewhat 
higher increases for certain categories of non-members, as a result of 
the reduction in the number of non-member volume discount tiers from 
six to three. Moreover, subscriber fees charged to members will be 
discounted by 2% for members who preauthorize payment by electronic 
funds transfer through an automated clearinghouse system.
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    \5\ The proposed tiers are as follows: (1) For 1-9 devices, 
members pay $23.00 per device, and non-members pay $24.00 per 
device; (2) for 10-29 devices, members pay $14.00 per device, and 
non-members pay $19.00 per device; (3) for 30-99 devices, members 
pay $11.00 per device, and non-members pay $19.00 per device; (4) 
for 100-749 devices; members pay $11.00 per device, and non-members 
pay $12.75 per device; and (5) for 750+ devices, members pay $9.00 
per device, and non-members pay $12.75 per device.
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    As an alternative to the traditional device-based subscriber fee, 
this amendment also proposes the adoption of a new ``enterprise rate'' 
subscriber fee, which will permit members of OPRA's participant 
exchanges to pay a flat monthly fee and thereby be authorized to access 
OPRA data on any number of devices at no additional cost. The 
enterprise rate is based on the number of registered representatives 
employed by the subscriber, and is $10 per month per registered 
representative in member firms having up to 20,000 registered 
representatives, and $7.50 per month per registered representative in 
member firms having more than 20,000 registered representatives. There 
is a minimum monthly fee of $2,000 for member firms electing the 
enterprise rate. OPRA believes the enterprise rate fee will be 
advantageous to a number of subscribers because it will lower their 
cost of access to OPRA data and eliminate the burden of keeping track 
of and reporting to OPRA the number of their devices, and also because 
it will give firms the flexibility to increase access to OPRA data 
without additional cost. Because the enterprise rate is based on a 
member firm's number of representatives registered with the National 
Association of Securities Dealers, Inc. (``NASD''), the rate is only 
applicable to member firm locations in the United States. Non-U.S. 
offices of member firms will continue to pay the device-based fee with 
respect to those offices, although at a volume discounted rate that 
takes into account all of their OPRA-enabled devices throughout the 
world, including those devices in the United States to which the 
enterprise rate fee may apply.
    OPRA is proposing these fee changes because, as a result of the 
implementation of systems and equipment upgrades and additions in order 
to increase the capacity and enhance the reliability and security of 
the OPRA system, the costs of collecting, processing, consolidating and 
disseminating OPRA data have continued to increase. OPRA anticipates 
continued escalation of these costs. OPRA states that the device-based 
fee increases provided for in the proposed amendment are intended to 
cover these costs. At the same time, by introducing the new enterprise 
rate subscriber fee, OPRA will be able to lower its costs of 
administration by eliminating the need to keep track of subscriber 
device counts, and will pass on a portion of these savings to 
enterprise rate subscribers in the form of lower overall costs of 
access. OPRA proposes to implement the new fee structure beginning on 
March 1, 1997.

II. Solicitation of Comments

    Pursuant to Rule 11Aa3-2(c)(3), the amendment is effective upon 
filing with the Commission. The Commission may summarily abrogate the 
amendment within 60 days of its filing and require refiling and 
approval of the amendment by Commission order pursuant to Rule 11Aa3-
2(c)(2), if it appears to the Commission that such action is necessary 
or appropriate in the public interest; for the protection of investors 
and the maintenance of fair and orderly markets; to remove impediments 
to, and perfect the mechanisms of, a National Market System; or 
otherwise in furtherance of the purposes of the Exchange Act.
    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. 
Copies of the submission, all subsequent amendments, and 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 
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 at 
the principal offices of OPRA. All

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submissions should refer to file number SR-OPRA-97-1 and should be 
submitted by February 15, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority. \6\
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    \6\ 17 CFR 200.30-3(a)(29).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-2257 Filed 1-29-97; 8:45 am]
BILLING CODE 8010-01-M