[Federal Register Volume 61, Number 31 (Wednesday, February 14, 1996)]
[Notices]
[Pages 5827-5828]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3217]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36817; File No. SR-OPRA-96-1]
Options Price Reporting Authority; Notice of Filing and Immediate
Effectiveness of Amendment to OPRA Fee Schedule Revising the
Information Fees Payable by Professional Subscribers to Last Sale and
Quotation Information
February 7, 1996.
Pursuant to rule 11Aa3-2 under the Securities Exchange Act of 1934
(``Exchange Act''), notice is hereby given that on January 22, 1996,
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
information fees payable by professional subscribers to last sale and
quotation information.\2\ 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.
\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'').
\2\ In September 1995, OPRA previously filed an amendment to
revise the fees payable by professional subscribers. See Securities
Exchange Act Release No. 36364 (October 12, 1995), 60 FR 54093
(October 19, 1995). OPRA subsequently withdrew the proposed
amendment on November 22, 1995. See Letter from Janet Angstadt,
Schiff Hardin & Waite, Attorney for OPRA, to David Oestreicher,
Attorney, Division of Market Regulation, SEC (November 22, 1995).
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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 securities options market
data and related information (``OPRA data''), so that a greater share
of the costs of
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collecting, consolidating, processing and transmitting OPRA data will
be covered by these fees.\3\ 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 1991, implemented over a four year period
beginning in January 1992 and ending in January 1995.
\3\ This amendment only applies to OPRA's professional
subscriber fees with respect to its basic service, which consists of
market data on all listed options other than foreign currency
options (``FCOs''). A separate subscriber fee is charged for FCO
service. See Securities Exchange Act Release No. 36613 (December 30,
1995), 60 FR 67144 (December 28, 1995).
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The current schedule of professional subscriber fees offers volume
discounts to larger subscribers by reducing the fee per device as the
total number of devices maintained by a subscriber increases. There are
six separate pricing tiers covering the range from One device to 750 or
more devices per subscriber. For each tier above the single-device
subscriber, a discount is provided to subscribers that are members of
one or more of OPRA's participating exchanges.
The proposed amendment retains the concept of a volume discount and
retains a member discount.\4\ OPRA claims, however, that this proposal
is the first step in a program that OPRA intends to implement over
several years in order to reduce the number of member and non-member
tiers and thereby simplify the administration of the professional
subscriber fee for OPRA, its vendors and subscribers.
\4\ The proposed tiers are as follows: (1) For 1-3 devices,
members pay $34.00 per device, and non-members pay $35.00 per
device; (2) for 4-9 devices, members pay $23.00 per device, and non-
members pay $24.00 per device; (3) for 10-29 devices, members pay
$13.65 per device, and non-members pay $15.00 per device; (4) for
30-99 devices, members pay $10.50 per device, and non-members pay
$14.50 per device; (5) for 100-749 devices, members pay $10.50 per
device, and non-members pay $12.00 per device; and (6) for 750+
devices, members pay $8.40 per device, and non-members pay $10.00
per device.
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The changes in the level of OPRA's professional subscriber fees
that are being proposed either will reduce or maintain at current
levels the fees paid by small professional subscribers having no more
than three devices, and will increase the fees paid by professional
subscribers having four or more devices.\5\ The net result of these
changes in professional subscriber fees is estimated to result in an
overall increase in professional subscriber fee revenue of
approximately 4.75 percent, assuming no changes in the size or
distribution of OPRA's total professional subscriber base.
\5\ The increases range from $.40 to $1.00 per device for
members and from $1.00 to $3.50 per device for non-members.
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OPRA is proposing these fee changes because, over the four years
that have elapsed since the last professional subscriber fee change was
authorized in 1991, the exchanges have absorbed increases in the costs
of collecting, processing, consolidating and disseminating OPRA data.
According to OPRA, the increases largely are due to the implementation
of systems and equipment upgrades and additions that have increased the
capacity and enhanced the reliability and security of the OPRA system.
OPRA anticipates continued escalation of these costs.
OPRA believes that the costs associated with the processing of OPRA
data are largely independent of trading volume and, therefore, it has
determined that a larger share of such costs should be covered by
revenues that also are largely independent of trading volume. OPRA
claims that the proposed amendment is intended to achieve this
objective, and to allocate market information fees fairly among the
different categories of professional subscribers that pay such fees.
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 submissions should refer to file
number SR-OPRA-96-1 and should be submitted by March 5, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
\6\ 17 CFR 200.30-3(a)(29).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-3217 Filed 2-13-96; 8:45 am]
BILLING CODE 8110-01-M
