[Federal Register Volume 79, Number 234 (Friday, December 5, 2014)]
[Notices]
[Pages 72219-72220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-28546]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73712; File No. SR-OPRA-2014-03]


Options Price Reporting Authority; Order Approving an Amendment 
to the Plan for Reporting of Consolidated Options Last Sale Reports and 
Quotation Information To Amend OPRA's Definition of the term 
``Nonprofessional''

December 1, 2014.

I. Introduction

    On March 11, 2014, 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 
revise the definition of the term ``Nonprofessional.'' The proposed 
OPRA Plan amendment was published for comment in the Federal Register 
on August 18, 2014.\4\ The Commission received no comment letters in 
response to the Notice.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ The OPRA Plan is a national market system plan approved by 
the Commission pursuant to Section 11A of the Act and Rule 608 
thereunder. See Securities Exchange Act Release No. 17638 (March 18, 
1981), 22 SE.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 twelve participants to the OPRA Plan are BATS 
Exchange, Inc., BOX Options Exchange, LLC, Chicago Board Options 
Exchange, Incorporated, C2 Options Exchange, Incorporated, 
International Securities Exchange, LLC, Miami International 
Securities Exchange, LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, 
NASDAQ Stock Market LLC, NYSE MKT LLC, NYSE Arca, Inc., and Topaz 
Exchange, LLC (d/b/a ISE Gemini).
    \4\ See Securities Exchange Act Release No. 72824 (August 12, 
2014), 79 FR 48780 (``Notice'').
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    This order approves the proposed OPRA Plan amendment.

II. Description of the Proposal

    The purpose of the proposed amendment is to revise the definition 
of the term ``Nonprofessional'' as that term is used in the ``Addendum 
for Nonprofessionals'' that is attached to OPRA's Electronic Form of 
Subscriber Agreement and its Hardcopy Form of Subscriber Agreement.\5\
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    \5\ These two forms are Attachments B-1 and B-2 to OPRA's Form 
of Vendor Agreement and they are available on OPRA's Web site at 
www.opradata.com.
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    Paragraph (c) of OPRA's current definition of the term 
``Nonprofessional'' specifies that to qualify as a ``Nonprofessional'' 
a person must not be: ``(i) registered or qualified with the Securities 
and Exchange Commission, the Commodities Futures Trading Commission, 
any state securities agency, any securities exchange/association, or 
any commodities/futures contract market/association, (ii) engaged as an 
``investment adviser,'' as that term is defined in the Investment 
Advisers Act of 1940 (whether or not registered or qualified under that 
Act); or (iii) employed by a bank or other organization exempt from 
registration under Federal and/or state securities laws to perform 
functions that would require you to be so registered or qualified if 
you were to perform such functions for an organization not so exempt.'' 
According to OPRA, a literal reading of this language could lead to the 
conclusion that a person who works outside of the United States as (for 
example) a securities broker could qualify as a ``Nonprofessional,'' 
because the person is not covered by clauses (i), (ii) or (iii) of 
Paragraph (c).
    OPRA is not aware of any instances in which an OPRA Vendor has 
determined that Subscribers who work outside the United States qualify 
to be Nonprofessional Subscribers on the basis of reading the 
definition of the term ``Nonprofessional'' in this manner.\6\ However, 
OPRA believes that it is appropriate to modify the language to prevent 
such a reading. Accordingly, OPRA proposes to modify the current 
definition by adding a phrase at the beginning of paragraph (c) to 
clarify that the current language applies to persons who work in the 
United States and adding a sentence to paragraph (c) to say that ``For 
a natural person who works outside of the United States, a 
`Professional' is a natural person who performs the same functions as 
someone who would be considered a `Professional' in the United 
States.''
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    \6\ According to OPRA, the definition of the term 
``Nonprofessional Subscriber'' used by the Consolidated Tape 
Association (``CTA''), which is substantively similar to OPRA's 
definition in almost all respects, prevents a similar reading of its 
definition.
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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.\7\

[[Page 72220]]

Specifically, the Commission finds that the proposed OPRA Plan 
amendment is consistent with Section 11A of the Act \8\ and Rule 608 
thereunder \9\ 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 mechanisms of, a 
national market system. The proposed change to the definition of the 
term Nonprofessional is designed to clarify that the term is meant to 
apply to persons engaged in the same type of business whether they are 
located in the United States or elsewhere. The Commission believes that 
OPRA's proposal is consistent with Section 11A of the Act \10\ and Rule 
608 thereunder \11\ because the proposal is designed to add clarity to 
OPRA's existing term and should therefore help to avoid investor 
confusion. In addition, the Commission notes that the proposed 
revisions to the term ``Nonprofessional'' will make the term used by 
OPRA consistent with the similar term used by CTA.
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    \7\ 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).
    \8\ 15 U.S.C. 78k-1.
    \9\ 17 CFR 242.608.
    \10\ 15 U.S.C. 78k-1.
    \11\ 17 CFR 242.608.
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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-2014-03) be, and it hereby is, approved.
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    \12\ 15 U.S.C. 78k-1.
    \13\ 17 CFR 242.608.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(29).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-28546 Filed 12-4-14; 8:45 am]
BILLING CODE 8011-01-P