72220 Federal Register / Vol. 79, No. 234 / Friday, December 5, 2014 / Notices 

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. 

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. 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). 

4OPRA’s regular hours of operations are from 

7:30 a.m. to 6:00 p.m. Eastern time. See Section 5.3 

of the OPRA Plan. 

5See Securities Exchange Act Release No. 72820 

(August 12, 2014), 79 FR 48779 (‘‘Notice’’). 

6OPRA does not currently operate outside of its 

regular hours of operations. However, according to 

OPRA, one of its member exchanges has indicated 

that it is planning to initiate after-hours trading and 

requested that OPRA operate during the after-hours 

period when its market will be open for trading. 

The current OPRA Plan provides that the OPRA 

System will operate outside of its regular hours of 

operation at the request of any one or more of its 

member exchanges. See Section 5.3 of the OPRA 

Plan. OPRA is not proposing any changes to Section 

5.3 of the OPRA Plan. 

7Clause 7.1(a)(iii)(2) of the OPRA Plan provides 

that costs above a ‘‘specified ceiling’’ are to be 

allocated in accordance with OPRA’s Capacity 

Guidelines. The ‘‘ceiling’’ is described in Guideline 

7 of the Capacity Guidelines. OPRA is not 

proposing any changes in the allocation of costs as 

described in the Capacity Guidelines. 

8See Section 7.1 of the OPRA Plan. 

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. 

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. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–28546 Filed 12–4–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73711; File No. SR–OPRA– 

2013–03] 

Options Price Reporting Authority; 

Order Approving an Amendment to the 

Plan for Reporting of Consolidated 

Options Last Sale Reports and 

Quotation Information To Amend 

Sections 5.4 and 7.1 of the OPRA Plan 

December 1, 2014. 

I. Introduction 

On October 21, 2013, 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 modify Sections 5.4 

and 7.1 of the OPRA Plan as they relate 

to operations of OPRA outside of 

OPRA’s regular hours of operations.4

The proposed OPRA Plan amendment 

was published for comment in the 

Federal Register on August 18, 2014.5

The Commission received no comment 

letters in response to the Notice. 

This order approves the proposed 

OPRA Plan amendment. 

II. Description of the Proposal 

The purpose of the proposed 

amendment is to (1) amend the OPRA 

Plan so that it provides for the 

aggregation of costs for operations of 

OPRA outside of its regular hours of 

operations (‘‘after-hours operations’’) 

with costs for operations of OPRA 

during its regular hours of operations 

(‘‘regular-hours operations’’); and (2) 

state expressly that OPRA may establish 

separate fees for access to OPRA data 

during periods of after-hours 

operations.6

Currently, the OPRA Plan provides 

that the costs of OPRA’s after-hour 

operations are to be allocated separately 

from the costs of OPRA’s regular-hour 

operations and in a somewhat different 

manner. The OPRA Plan currently 

provides that the costs of OPRA’s 

regular-hour operations below a 

specified ceiling 7 and OPRA’s revenues 

from regular-hour operations are both to 

be allocated among the OPRA member 

exchanges on the basis of the relative 

number of compared trades in options 

contracts traded on each of the OPRA 

member exchanges.8

The current provisions of the OPRA 

Plan state that, if the OPRA System 

operates outside of OPRA’s regular 

hours, any costs attributable to such 

operation will be allocated to the 

exchange or exchanges that are actually 

operating during the after-hours period. 

The OPRA Plan does not make any 

special provision for the allocation of 

revenues derived from fees for access to 

OPRA data generated in the course of 

after-hours operations, and the OPRA 

Plan therefore provides that these 

revenues will be allocated among the 

OPRA member exchanges in the same 

way that revenues derived from regularhours operations are allocated. The 

result is that the OPRA Plan currently 

provides for the allocation of costs of 

after-hours trading only to the exchange 

or exchanges that are actually operating 

during the after-hours period, but for the 

allocation of revenues resulting from 

fees for access to quotation and last sale 

information generated in the course of 

after-hours operations to all of the 

OPRA member exchanges on the basis 

of the relative number of compared 

trades in options contracts traded on 

each of the OPRA member exchanges in 

trading during both regular hours and 

outside of regular hours. 

OPRA is therefore proposing to revise 

the OPRA Plan to provide that the costs 

of after-hours operations will be 

aggregated with the costs of operating 

the OPRA System during regular hours 

of operation. As a result of the proposed 

change, the aggregated costs of operating 

the System during all hours of operation 

would be allocated among all of OPRA’s 

member exchanges, regardless of 

whether any particular exchange 

operates its market outside of regular 

hours. 

In addition, OPRA’s Fee Schedule 

does not currently provide specific fees 

for access to OPRA data during periods 


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Federal Register / Vol. 79, No. 234 / Friday, December 5, 2014 / Notices 72221 

9OPRA is also proposing to make a nonsubstantive change to Section 5.4(d) of the OPRA 

Plan to reflect that the OPRA Fee Schedule is no 

longer identified as ‘‘Exhibit B’’ to the OPRA Plan 

but is publicly available on the OPRA Web site 

under the ‘‘Fees’’ tab. 

10 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). 

11 15 U.S.C. 78k–1. 

12 17 CFR 242.608. 

13 15 U.S.C. 78k–1. 

14 17 CFR 242.608. 

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. 

3When applied to a market maker, sometimes 

referred to as a ‘‘maker participant identifier.’’ 

4See Securities Exchange Act Release No. 62564 

(July 23, 2010), 75 FR 44830 (July 29, 2010) (SR– 

NASDAQ–2010–089). 

of after-hours operations. Therefore, 

OPRA is proposing to add a sentence to 

Section 5.4(d) of the OPRA Plan to state 

expressly that it may establish such 

fees.9

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.10

Specifically, the Commission finds that 

the proposed OPRA Plan amendment is 

consistent with Section 11A of the 

Act 11 and Rule 608 thereunder 12 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. OPRA believes that the 

proposed amendment will better align 

the provisions of the OPRA Plan relating 

to the allocation of costs of after-hours 

operations with the provisions of the 

OPRA Plan relating to the allocation of 

revenues derived from after-hours 

trading. The Commission believes that 

OPRA’s proposal is consistent with 

Section 11A of the Act 13 and Rule 608 

thereunder.14

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–2013–03) 

be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–28545 Filed 12–4–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73705; File No. SR– 

NASDAQ–2014–118] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

NASDAQ Rule 7001(c) 

December 1, 2014. 

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 November 

26, 2014, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I, II and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to modify 

NASDAQ Rule 7001(c) concerning 

market maker participant identifier 3

(‘‘MPID’’) fees. The Exchange proposes 

to implement the proposed rule change 

on December 1, 2014. 

The text of the proposed rule change 

is available at 

nasdaq.cchwallstreet.com, at 

NASDAQ’s principal office, 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, 

NASDAQ 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 those 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NASDAQ is proposing to amend the 

fees assessed under Rule 7001(c) for 

MPIDs. MPIDs are special numerical 

identifiers assigned to certain brokerdealers to identify the firms’ transaction 

and quoting activity. NASDAQ 

administers the assignment of MPIDs, 

which may be requested by a brokerdealer for use on NASDAQ systems, 

reporting to Financial Industry 

Regulatory Authority (‘‘FINRA’’), or a 

combination of the two. NASDAQ 

member firms are provided with a 

Primary MPID upon gaining NASDAQ 

membership, but may also request 

additional MPIDs. These additional 

MPIDs are called Supplemental MPIDs 

and may be used by member firms to 

separate orders or quotes entered into 

the NASDAQ system for affiliates, 

segregated business units or trading 

desks, or sponsored access firms. 

Member firms also may use 

Supplemental MPIDs exclusively for 

reporting information to facilities of the 

FINRA, such as the FINRA/NASDAQ 

Trade Reporting Facility. 

Under Rule 7001(c), NASDAQ 

provides a Primary MPID at no cost, and 

Supplemental MPIDs for a fee of $1,000 

per month, per additional identifier. 

The Exchange also provides 

Supplemental MPIDs at no cost if they 

are used exclusively for reporting 

information to facilities of FINRA. The 

Exchange has not modified the fees 

assessed for MPIDs since adopting Rule 

7001(c) in July 2010.4 NASDAQ is 

proposing to eliminate the distinction 

between Primary and Supplemental 

MPIDs and assess a fee of $500 per 

month, per identifier. As is currently the 

case, NASDAQ will not assess a fee for 

MPIDs used exclusively for reporting to 

the facilities of FINRA. A consequence 

of the proposed change is that some 

member firms will experience an overall 

fee increase. Specifically, a member firm 

that currently has only one MPID (a 

‘‘Primary MPID’’ under the current rule) 

would now have to pay $500 per month 

for the MPID under the proposed 

change, whereas that member firm pays 

nothing under the current rule. A 

member firm that has two MPIDs 

currently, none of which are [sic] used 

exclusively for reporting to the facilities 

of FINRA, would experience no change 

in the total monthly fee assessed for its 


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