[Federal Register Volume 62, Number 191 (Thursday, October 2, 1997)]
[Notices]
[Pages 51707-51708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26146]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39137; File No. SR-OPRA-97-4]
Options Price Reporting Authority; Notice of Filing of Amendment
to OPRA Plan Revising OPRA's Dial-Up Market Data Service Rider to its
Vendor Agreement to Accommodate the Vendor's Provision of Dial-Up
Service to Customers of OPRA Subscribers
September 26, 1997.
Pursuant to Rule 11Aa3-2 under the Securities Exchange Act of 1934
(``Exchange Act''), notice is hereby given that on September 11, 1997,
the Options Price Reporting Authority (``OPRA'') \1\
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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. See Securities Exchange Act Release No. 17638
(Mar. 18, 1981).
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[[Page 51708]]
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 Dial-Up Market Data Service Rider (``Rider'') to
OPRA's vendor agreement to accommodate a third party vendor's provision
of dial-up service to customers of an OPRA subscriber. The Commission
is publishing this notice to solicit comments from interested persons
on the amendment.
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The Plan provides for the collection and dissemination of last
sale and quotation information on options that are traded on the
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 Exchange (``PCX''); and the Philadelphia Stock Exchange
(``Phlx'').
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I. Description and Purpose of the Amendment
The purpose of the amendment is to add provisions to OPRA's Dial-Up
Market Service Data Service Rider to the vendor agreement to
accommodate the situation in which an OPRA vendor provides a dial-up
service to the customers of an OPRA subscriber, rather than to its own
customers. According to OPRA, several vendors and broker-dealer
subscribers have recently expressed interest in such an arrangement. As
this arrangement is not currently contemplated under the Rider, the
proposal would amend the Rider to address the one significant
difference between the traditional situation of a firm providing a
dial-up service to its own customers and the recent proposals for firms
to arrange for third-party vendors to provide a dial-up service for the
firm's customers. In the former case, there is a direct contractual
relationship between the vendor, a party to the Rider, and the vendor's
customers. In the latter case, however, the vendor's subscriber, rather
than the vendor, has a contractual relationship with the customer.
In its current form, the Rider imposes certain obligations on
vendors who provide a dial-up service. These obligations require that
contracts between vendors and their customers contain specific
provisions, for the benefit of OPRA, relating to proprietary rights to
OPRA data, non-retransmission of data, the absence of any guarantee of
the data and a disclaimer of liability. The proposed amendment to the
Rider would mandate that vendors require comparable provisions to be
included in contracts between subscribers and their customers who
receive a dial-up service from a third-party vendor. In a situation
where the vendor, and not the subscriber, actually provides the dial-up
service to the subscriber's customers, only the vendor will be a party
to a Rider. Accordingly, the proposed amendment would make it a
condition to a vendor's providing a dial-up service to the customers of
a subscriber that the subscriber must agree, in writing, with the
vendor to include the requisite provisions in its written agreements
with its customers.\2\
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\2\ The proposal would require vendors to obtain a written
agreement from each OPRA subscriber whose customers will be provided
the dial-up service from the vendor that the subscriber will: (1)
Obtain from each of its customers to whom the vendor furnishes the
service an agreement that the customer will: (a) To receive OPRA
data only for such person's use, (b) to not retransmit the data to
anyone else, and (c) to acknowledge that OPRA data is the property
of the respective exchange or market in which a reported transaction
occurred or a reported quotation was entered; (2) provide to the
vendor a current list of customers entitled to receive the service
from the vendor and to certify that each named customer has entered
into the required agreement; (3) maintain the same customer records
required to be maintained by the vendor with respect to customers;
and (4) acknowledge the absence of any guarantee and the disclaimer
of liability on the part of OPRA, OPRA's processor and each
participating exchange.
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Other than as described above, OPRA proposes no change in the way
in which dial-up services may be offered to investors. OPRA represents
that no new or additional OPRA fees will result from this proposed
amendment and the amendment will not make any new parties subject to
OPRA's existing fees.
II. Implementation of the Plan Amendment
The proposed amendment will be reflected in a revised form of Rider
that will be phased in to take the place of the existing Rider, subject
to Commission approval.
III. Solicitation of Comments
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, NW., Washington, DC 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 Submissions should refer to file
number SR-OPRA-97-4 and should be submitted by October 23, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\3\
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\3\17 CFR 200.30-3(a)(29).
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Margaret H. McFarland,
Deputy Secretary,
[FR Doc. 97-26146 Filed 10-1-97; 8:45 am]
BILLING CODE 8010-01-M
