[Federal Register Volume 59, Number 205 (Tuesday, October 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26340]


[[Page Unknown]]

[Federal Register: October 25, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34850; International Series No. 730 File No. S7-8-90]

 

Options Price Reporting Authority; Notice of Filing and Immediate 
Effectiveness of Amendment to OPRA Fee Schedule Establishing a One Year 
Pilot Program Providing an Alternative Means of Charging for Dial-Up 
Market Data.

October 18, 1994.
    Pursuant to Rule 11Aa3-2 under the Securities Exchange Act of 1934 
(``Act''), notice is hereby given that on September 6, 1994, 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''), establishing a pilot 
program providing an alternative means of charging for dial-up market 
data. OPRA has designated this proposal as concerned solely with the 
administration of the plan permitting it to become effective upon 
filing pursuant to Rule 11Aa3-2(c)(3)(ii) under the Act. The Commission 
is publishing this notice to solicit comments from interested persons 
on the amendment.
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    \1\OPRA is a National Market System Plan approved by the 
Commission pursuant to Section 11A of the Act and Rule 11Aa3-2. 
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 Philadelphia Stock Exchange (``PHLX''), the Chicago 
Board Options Exchange (``CBOE''), the American Stock Exchange 
(``AMEX''), the Pacific Stock Exchange (``PSE''), and the New York 
Stock Exchange (``NYSE'').
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I. Description and Purpose of the Amendment

    The purpose of the amendment is to respond to requests from OPRA 
vendors, who make options information available to their customers via 
a PC dial-up service, to establish a usage-based fee as an alternative 
to the existing port charge. Currently, vendors interested in offering 
this service must pay a Dial-Up Data Service Utilization Fee based on 
the peak number of ports of a vendor's computer that are simultaneously 
used to provide the service during the month for which the charge is 
assessed. Under the proposed pilot program, a vendor would have the 
alternative of paying a fee determined by the total number of inquiries 
for options quotations and last sale reports received by the service 
during the month. The usage-based fee is proposed to be established at 
the rate of $0.02 for each ``quote packet'' which would consist of any 
one or more of the following values: last sale, bid/ask, and related 
market data for a single series of options or a related index. All 
inquiries, except those for historical information (i.e., prior to the 
current trading day), would be counted for purposes of calculating the 
fee.
    During the pilot period, vendors who have entered into a Dial-Up 
Market Data Service Rider and Vendor Agreement with OPRA may elect to 
pay the usage-based fee by submitting a written election to that effect 
to OPRA. The form for electing this option will require vendors to 
provide OPRA with a description of its systems and procedures used to 
count the number of inquiries for options quotations and last sale 
reports received by the service, and will permit OPRA to inspect its 
records and systems pertaining to such count.
    OPRA is proposing to introduce the fee initially for a one year 
pilot period in order to evaluate the usefulness of a usage-based fee 
and to measure its impact on OPRA's revenue. The pilot program will 
continue for one year from the time that the first dial-up vendor 
elects to be subject to the usage-based fee proposed herein, unless the 
pilot program is extended or made permanent at the end of this period.

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 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 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 NW., 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 No. 
S7-8-90 and should be submitted by November 5, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority, 17 CFR 200.30-3(a)(29).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-26340 Filed 10-24-94; 8:45 am]
BILLING CODE 8010-01-M