6750 Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices 

5Any Vendor has the right under paragraph 1(c) 

of the Rider to terminate the Rider, and under 

paragraph 19(d) of the OPRA form of Vendor 

Agreement to terminate the Vendor Agreement, in 

each case without cause upon thirty days written 

notice. The termination right essentially provides 

comfort to a television company Vendor that, if an 

index ceases to be available to the Vendor on less 

than thirty days notice, the Vendor may terminate 

either the Rider alone or the Rider and Vendor 

Agreement on the date the index ceases to be 

available. 

6See the CTA form of Exhibit C to its form 

Agreement for Receipt and Use of Consolidated 

Network A Data and NYSE Market Data for ‘‘Cable 

Broadcasts.’’

7Specifically, OPRA plans to charge a fee of $.50 

per 1,000 households reached. See proposed 

‘‘Television Display Fee’’ on the OPRA Fee 

Schedule. 

8 In approving this proposed OPRA Plan 

Amendment, the Commission has considered its 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 

9 15 U.S.C. 78k–1. 

10 17 CFR 242.608. 

11 15 U.S.C. 78k–1(a)(1)(C)(iii). 

12 15 U.S.C. 78k–1. 

13 17 CFR 242.608. 

14 17 CFR 200.30–3(a)(29). 

1 15 U.S.C. 78k–1. 

2 17 CFR 242.608. 

3The OPRA Plan is a national market system plan 

approved by the Commission pursuant to Section 

11A of the Act and Rule 608 thereunder (formerly 

Rule 11Aa3–2). See Securities Exchange Act 

Release No. 17638 (March 18, 1981), 22 S.E.C. 

Docket 484 (March 31, 1981). The full text of the 

OPRA Plan is available at http:// 

www.opradata.com. 

The OPRA Plan provides for the collection and 

dissemination of last sale and quotation information 

on options that are traded on the participant 

exchanges. The six participants to the OPRA Plan 

are the American Stock Exchange LLC, the Boston 

Stock Exchange, Inc., the Chicago Board Options 

Exchange, Incorporated, the International Securities 

Exchange, Inc. (‘‘ISE’’), the NYSE Arca, Inc., and the 

Philadelphia Stock Exchange, Inc. (‘‘Phlx’’). 

4Amendment No. 1 replaced the original filing in 

its entirety. 

out requirements that are intended to 

elicit only the information that OPRA 

would need in order to verify the fees 

paid by a television company for 

television dissemination. 

In addition, to accommodate the 

possibility that some owners of the 

indexes that OPRA disseminates may 

not wish to grant television companies 

the right to disseminate their indexes 

separately from the dissemination of 

related options market data, the new 

Rider would include language providing 

OPRA with the ability to grant 

permission to Vendor television 

companies to display index values 

separately from the dissemination of 

related options market data, and to 

revoke that permission. OPRA would 

treat all television companies that sign 

Riders identically with respect to 

permission to display index values. 

However, if OPRA revokes permission 

to display particular index values 

separately from the dissemination of 

related options market data, and, as a 

consequence, the television company 

Vendor no longer wishes to display 

OPRA Data values and to pay fees for 

doing so, language in the Rider would 

allow the television company Vendor to 

terminate the Rider and its Vendor 

Agreement, or only the Rider, effective 

as of the date that the index values cease 

to be available to the television 

company Vendor.5

Furthermore, Section 2 of the Rider 

would require a television company 

Vendor to display a legend on its 

television display at least three times a 

day. OPRA represents that the form of 

the legend would be the same as the 

legend required by the Consolidated 

Tape Association (‘‘CTA’’) for its 

counterpart Network A service, and the 

requirement with respect to the display 

of the legend would be the same as the 

CTA requirement.6

Finally, OPRA proposes to charge a 

fee for the dissemination via television 

of current OPRA Data on the basis of the 

number of ‘‘thousands of households 

reached’’ by the Vendor television 

company’s programming.7 OPRA 

represents that this metric is widely 

used in the television industry and is 

used by CTA for its counterpart service. 

III. Discussion 

After careful review, the Commission 

finds that the proposed OPRA Plan 

amendment is consistent with the 

requirements of the Act and the rules 

and regulations thereunder.8

Specifically, the Commission finds that 

the proposed OPRA Plan amendment is 

consistent with Section 11A of the Act 9

and Rule 608 thereunder 10 in that it is 

appropriate in the public interest, for 

the protection of investors and the 

maintenance of fair and orderly markets, 

and to remove impediments to, and 

perfect the mechanism of, a national 

market system. 

The Commission believes the new 

Rider to allow television companies to 

disseminate current OPRA data via a 

passive scrolling or ticker television 

display is consistent with, and would 

further one of the principal objectives 

for the national market system set forth 

in Section 11A(a)(1)(C)(iii) of the Act 11

because it would help to assure the 

availability of information with respect 

to options information to brokers, 

dealers, and investors. Furthermore, the 

Commission believes that the proposed 

OPRA Plan amendment provides for an 

equitable allocation of reasonable fees 

for the dissemination via television of 

current OPRA Data. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 11A of the Act,12 and Rule 608 

thereunder,13 that the proposed OPRA 

Plan amendment (SR–OPRA–2007–05) 

be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1997 Filed 2–4–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57230; File No. SR–OPRA–

2007–03] 

Options Price Reporting Authority; 

Order Granting Permanent Approval to 

an Amendment to the Plan for 

Reporting of Consolidated Options 

Last Sale Reports and Quotation 

Information, as Modified by 

Amendment No. 1 Thereto, To Modify 

Various Provisions of the OPRA Plan 

and the OPRA Fee Schedule To Reflect 

the Elimination of Separate Fees for 

Access to Market Data Concerning 

Foreign Currency Options 

January 29, 2008. 

I. Introduction 

On October 9, 2007, the Options Price 

Reporting Authority (‘‘OPRA’’) 

submitted to the Securities and 

Exchange Commission (‘‘Commission’’), 

pursuant to Section 11A of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 608 thereunder,2 an 

amendment to the Plan for Reporting of 

Consolidated Options Last Sale Reports 

and Quotation Information (‘‘OPRA 

Plan’’).3 The proposed OPRA Plan 

amendment would amend various 

provisions of the OPRA Plan in order to 

reflect the elimination of the separate 

fees for access to market data 

concerning Foreign Currency Options 

(‘‘FCOs’’) that currently apply to certain 

FCOs traded on the Phlx. The OPRA Fee 

Schedule would similarly be revised to 

reflect the elimination of the separate 

FCO service access fees. On November 

14, 2007, OPRA submitted Amendment 

No. 1 to the proposal.4 On December 11, 

2007, OPRA submitted a revised version 

of Exhibit II to Amendment No. 1 to the 

proposal, which it requested to be 


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Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices 6751 

5The revised Exhibit II made technical changes 

to the original and corrected an outdated reference 

to the ‘‘NASD,’’ which is now called ‘‘FINRA.’’

6See Securities Exchange Act Release No. 56949 

(December 12, 2007), 72 FR 71720 (December 18, 

2007) (‘‘Temporary Approval Order’’). 

7See Securities Exchange Act Release No. 35487 

(March 14, 1995), 60 FR 14984 (March 21, 1995) 

(File No. S7–8–90). 

8See Securities Exchange Act Release No. 36613 

(December 20, 1995), 60 FR 67144 (December 28, 

1995) (SR–OPRA–95–5). 

9See Securities Exchange Act Release Nos. 52901 

(December 6, 2005), 70 FR 74061 (December 14, 

2005) (SR–OPRA–2005–03) and 55049 (January 5, 

2007), 72 FR 1568 (January 12, 2007) (SR–OPRA–

2006–02). 

10Pursuant to the Temporary Approval Order, 

this deadline was extended on a temporary basis 

not to exceed 120 days. 

11 In the case of U.S. dollar-settled FCOs, the fee 

reflects the temporary exception described above, 

whereas in the case of equity and index options, it 

is because OPRA has never adopted separate access 

fees for its index option service, but instead has 

made index options subject to the same basic 

service access fees that apply to equity options. 

12 In approving this proposed OPRA Plan 

Amendment, the Commission has considered its 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 

13 15 U.S.C. 78k–1. 

14 17 CFR 242.608. 

substituted for the original version of 

Exhibit II.5

On December 12, 2007, the 

Commission issued notice of and 

approved the proposal, as amended, on 

a temporary basis not to exceed 120 

days, and solicited comment on the 

proposal.6 The Commission received no 

comment letters in response to the 

Temporary Approval Order. This order 

approves the proposed OPRA Plan 

amendment, as modified by 

Amendment No. 1, on a permanent 

basis. 

II. Description of the Proposal 

Effective March 14, 1995, the OPRA 

Plan was amended to authorize the 

imposition of separate, unbundled 

access charges for market information 

pertaining to FCOs.7 Subsequently, 

effective January 1, 1996, separate 

access charges for market information 

were imposed by OPRA, and subject to 

the exception described below, such 

separate charges have remained in effect 

since that time.8 More recently, OPRA 

adopted a temporary exception to the 

separate FCO access fees for ‘‘new’’

FCOs first listed on any exchange on or 

after December 6, 2005, pursuant to 

which access to market information 

pertaining to such securities has been 

included within OPRA’s basic 

information service, and has required 

payment only of OPRA’s basic service 

access fees.9 This temporary exception, 

which is set forth in Section VIII(c)(iii) 

of the OPRA Plan, was scheduled to 

expire by its terms on December 31, 

2007, at which time, absent extension, 

all FCOs would become subject to 

separate FCO service access fees.10

Presently, OPRA states that certain 

classes of FCOs traded on the Phlx are 

subject to the separate FCO access fees, 

while other classes of FCOs traded on 

that exchange (those first listed on or 

after December 6, 2005) are subject to 

OPRA’s basic service access fees. 

Further, the ISE is the only other 

exchange currently trading FCOs, where 

all of the FCOs were listed subsequent 

to December 6, 2005, and thus are 

subject only to OPRA’s basic service 

access fees. 

Recently, the Phlx informed OPRA 

that it has ceased listing new series of 

physical delivery FCOs to replace 

expiring series, and instead provides a 

market for foreign currency derivative 

securities through the listing of new 

classes of U.S. dollar-settled FCOs, 

sometimes referred to as World 

Currency Options. Under the current 

OPRA Plan, access to market data 

concerning all options, including the 

new U.S. dollar-settled FCOs, as well as 

individual equity options and cashsettled index options, is subject to 

OPRA’s basic service access fees.11

OPRA proposes this amendment in 

order to maintain the same fee structure 

after the temporary exception for FCOs 

would otherwise have expired at the 

end of 2007. Trading in existing classes 

of physical delivery FCOs on the Phlx 

would be restricted to closing 

transactions until the last outstanding 

class expires on March 14, 2008, if the 

remaining positions in these classes are 

not closed out sooner. Accordingly, by 

that date, if not sooner, there would no 

longer be any physical delivery FCOs 

traded on the Phlx that would be subject 

to the existing separate FCO service 

access fees. At that time, access to 

market data for all options, including 

U.S. dollar-settled FCOs and all other 

FCO securities, would require payment 

only of OPRA’s basic service access fees. 

With respect to the FCOs traded on 

the ISE, OPRA notes that, unless the 

OPRA Plan is amended to eliminate the 

separate access fees for FCOs, upon the 

expiration of the temporary exception, 

FCOs traded on the ISE would have 

become subject to the separate FCO 

service access fees. In order to avoid 

subjecting FCO subscribers to what for 

them would be a new, additional, access 

fee for continued access to FCO market 

information, OPRA states that the ISE 

joined with the Phlx in requesting 

OPRA to amend the OPRA Plan to 

reflect the elimination of these separate 

fees. 

Under the proposed amendment, the 

OPRA Plan would treat FCOs in exactly 

the same manner in which it now treats 

index options. Specifically, similar to 

index options, the OPRA Plan would 

continue to provide for a separate FCO 

accounting center and a framework for 

the possible future imposition of a 

separate access fee when and if 

authorized by the parties that provide a 

market in those securities, subject to 

satisfying the requirements of the Act. 

Because the proposed amendment 

cannot become effective until the 

elimination by expiration or by closing 

transaction of the last remaining open 

position in physical delivery FCOs 

traded on Phlx that are subject to the 

separate FCO service access fees, which 

could be as late as March 14, 2008, and 

because it is necessary to retain the 

temporary exception from the separate 

FCO service access charges until these 

separate charges no longer apply, OPRA 

proposes to extend the temporary 

exception, currently scheduled to expire 

on December 31, 2007, until as late as 

March 14, 2008. Accordingly, this 

proposed amendment includes an 

extension of the temporary exception 

provided for in Section VIII(c)(iii) of the 

OPRA Plan until such time as there is 

no longer any open interest in physical 

delivery FCOs traded on the Phlx that 

are subject to the separate FCO service 

access fees. In no event will this be later 

than March 14, 2008. In accordance 

with the proposed OPRA Plan 

amendment, the Phlx will advise OPRA 

when that last remaining open interest 

no longer exists, so that the separate 

FCO service access fees and the 

temporary exception can be removed 

from the OPRA Plan effective as of that 

time. 

III. Discussion 

After careful review, the Commission 

finds that the proposed OPRA Plan 

amendment, as modified by 

Amendment No. 1, is consistent with 

the requirements of the Act and the 

rules and regulations thereunder.12

Specifically, the Commission finds that 

the proposed OPRA Plan amendment is 

consistent with Section 11A of the 

Act 13 and Rule 608 thereunder 14 in that 

it is in the public interest and 

appropriate for the protection of 

investors and the maintenance of fair 

and orderly markets, and to remove 

impediments to, and perfect the 

mechanism of, a national market 

system. 

The Commission believes that it is 

appropriate for the proposed OPRA Plan 

amendment to preserve the status quo 

and extend the deadline set forth in 

Section VIII(c)(iii) of the OPRA Plan 


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6752 Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices 

15 15 U.S.C. 78k–1. 

16 17 CFR 242.608. 

17 17 CFR 200.30–3(a)(29). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3For purposes of calculating the 60-day period 

within which the Commission may summarily 

abrogate the proposed rule change under Section 

19(b)(3)(C) of the Act, the Commission considers 

the period to commence on January 28, 2008, the 

date on which the Exchange filed Amendment No. 

3. See 15 U.S.C. 78s(b)(3)(C). 

4 15 U.S.C. 78s(b)(3)(A)(ii). 

5 17 CFR 240.19b–4(f)(2). 

until such time as there is no longer any 

open interest in physical delivery FCOs 

traded on the Phlx that are subject to the 

separate FCO service access fee. In 

addition, the Commission believes that 

OPRA’s proposal to amend various 

provisions of the OPRA Plan and the 

OPRA Fee Schedule to eliminate the 

separate fees for access to market data 

concerning FCOs that currently apply to 

certain FCOs traded on the Phlx is 

appropriate in light of the Phlx’s 

decision to cease listing new series of 

physical delivery FCOs to replace 

expiring series. Accordingly, the 

Commission believes that it is necessary 

or appropriate in the public interest, for 

the protection of investors or the 

maintenance of fair and orderly markets, 

to remove impediments to, and perfect 

mechanism of, a national market system 

to approve the proposed amendment to 

the OPRA Plan on a permanent basis. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 11A of the Act,15 and Rule 608 

thereunder,16 that the proposed OPRA 

Plan amendment (SR–OPRA–2007–03), 

as modified by Amendment No. 1 

thereto, be, and it hereby is, approved 

on a permanent basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1998 Filed 2–4–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57231; File No. SR–CBOE–

2007–152] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change as Modified by 

Amendments No. 1, 2, and 3 Relating 

to a Hybrid Agency Liaison (‘‘HAL’’) 

Step-Up Rebate and Pass-Through of 

Certain Linkage Related Costs 

January 30, 2008. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

21, 2007, the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’ 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 

substantially prepared by CBOE. On 

January 16, 2008, CBOE filed 

Amendment No. 1 to the proposed rule 

change. On January 23, 2008, CBOE 

filed Amendment No. 2 to the proposed 

rule change, and on January 28, CBOE 

filed Amendment No. 3 to the proposed 

rule change.3 CBOE has designated this 

proposal as one establishing or changing 

a due, fee, or other charge applicable 

only to a member under section 

19(b)(3)(A)(ii) of the Act,4 and Rule 

19b–4(f)(2) thereunder,5 which renders 

the proposal 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 

CBOE proposes to: (i) Establish a HAL 

step-up rebate, and (ii) pass through to 

members certain costs related to 

Intermarket Option Linkage (‘‘Linkage’’) 

Principal orders. The text of the rule 

proposal is available on the Exchange’s 

Web site (http://www.cboe.org/legal), at 

the Exchange’s Office of the Secretary, 

and at 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, 

CBOE included statements concerning 

the purpose of and basis for the 

proposed rule change 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. CBOE 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 

Change 

1. Purpose 

HAL Step-Up Rebate 

HAL is a system for automated 

handling of electronically received 

orders that are not automatically 

executed upon receipt by the Hybrid 

Trading System (‘‘Hybrid’’). CBOE Rule 

6.14 governs the operation of the HAL 

system. 

Orders received by the HAL system 

are electronically exposed to all CBOE 

market-makers appointed to the relevant 

option class, as well as to all members 

acting as agent for orders at the top of 

the Exchange’s book in the relevant 

option series. This exposure and a 

subsequent allocation period (together, 

the ‘‘HAL auction’’) afford crowd 

members an opportunity to match the 

away national best bid or offer 

(‘‘NBBO’’) price. If any portion of an 

exposed order remains unexecuted at 

the end of a HAL auction, then the 

remaining order would be booked if it 

is a limit order that is not marketable, 

or, if marketable, routed to the exchange 

showing the NBBO via Linkage. 

In order to provide an incentive to 

market makers to execute orders at 

CBOE, versus routing orders away via 

Linkage, the Exchange proposes to 

establish a program whereby the 

Exchange would provide a rebate to 

market-makers that ‘‘step-up’’ and trade 

all or part of certain orders on the HAL 

system. Specifically, the Exchange will 

rebate to a market-maker $.20 per 

contract against transaction fees 

generated from a transaction on the HAL 

system in a penny pilot class, provided 

that at least 80% of the market-maker’s 

quotes in that class (excluding quotes in 

LEAPS series) in that same month were 

on one side of the NBBO. Marketmakers not meeting this 80% criteria 

would not be eligible to receive a rebate. 

The Exchange believes the HAL rebate 

will allow market-makers to compete 

better for order flow in the penny pilot 

classes. 

Pass-Through of Linkage P Order Costs 

Pursuant to Section 21 of the CBOE 

Fees Schedule, the Exchange provides 

certain rebates and credits to Designated 

Primary Market-Makers (‘‘DPMs’’) for 

fees they incur related to the execution 

of outbound Principal orders (‘‘P 

orders’’) on behalf of orders that are for 

the account of a broker-dealer (i.e., ‘‘B’’

and ‘‘F’’ origin codes). 

The Exchange proposes to amend this 

program in two respects. First, the 


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