[Federal Register Volume 59, Number 236 (Friday, December 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30260]


[[Page Unknown]]

[Federal Register: December 9, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35049; International Series No. 754 File No. S7-8-90]

 

Options Price Reporting Authority; Notice of Filing of Amendment 
to the National Market System Plan

December 2, 1994.
    Pursuant to Rule 11Aa3-2 under the Securities Exchange Act of 1934 
(``ACT''), notice is hereby given that on September 19, 1994, the 
Options Price Reporting Authority (``OPRA'')\1\ submitted to the 
Securities and Exchange Commission (``Commission'' or ``SEC'') an 
amendment to its National Market System Plan for the purpose of 
providing separate unbundled last sale and quotation services for 
foreign currency and index options, and to charge separately for access 
to each such service.\2\
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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'').
    \2\The proposed amendment was approved by OPRA in accordance 
with the OPRA Plan at a meeting held on August 29, 1994.
    OPRA previously filed a similar amendment to its Plan for the 
purpose of providing separate services on March 18, 1993. That 
proposal appeared as Exchange Act Release No. 32190 (April 21, 1993) 
in 59 FR 25874 (April 28, 1993). At the request of the OPRA parties, 
no action was taken with respect to that proposal.
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    The Commission is publishing this notice to solicit comments from 
interested persons on the amendment.

I. Description and Purpose of the Amendment

    The OPRA Plan is being amended to permit OPRA to unbundle its 
market information services for foreign currency options (``FCO's'') 
and index options, and to impose separate fees for access to each 
service. The amendment provides for the establishment of three separate 
accounting centers for equity, index, and foreign currency options 
information, on January 1, 1996. Each accounting center would be 
allocated revenues, costs and expenses associated with the receipt, 
processing and distribution of last sale and quotation information, as 
well as the costs of developing, operating and administering services 
and facilities associated with each accounting center. The amendment 
provides for the further allocation of such revenues, costs and 
expenses among the parties providing a market in the securities 
included in each accounting center. The amendment also provides for the 
special allocation of incremental costs associated with the operation 
of one or more services outside of regular trading hours. Finally, the 
amendment includes a few nonsubstantive, editorial changes to clarify 
the language of the Plan.

II. Implementation of the Plan Amendment

    The implementation of separate services for FCO and index option 
information will necessitate certain systems modifications by OPRA's 
processor, Securities Industry Automation Corporation (``SIAC''). It 
also will require advance notice to OPRA's vendors and subscribers of 
the changes to OPRA's fees and specifications, as well as changes in 
contractual provisions, in accordance with OPRA's agreements with those 
persons. Vendors will then be able to determine whether and how they 
wish to offer separate FCO and index option services to their own 
customers, and to make any necessary modifications to their own systems 
and procedures associated with the separate offering of these services.
    In light of the time needed to implement the changes described 
above, OPRA has determined to commence making certain system changes at 
SIAC now. In particular, FCO market information that is currently 
disseminated over all of OPRA's output lines will be combined and 
disseminated over a single output line dedicated to FCO data only. 
Advance notice of this change will be given to vendors and other 
persons who access information directly from the OPRA processor in 
accordance with OPRA's agreements with such persons. Aditional steps 
necessary for the unbundling of FCO's and index options, such as 
contract modifications and the establishment of new fees, will be taken 
prior to January 1, 1996, as authorized by the parties in accordance 
with the Plan and subject to the requirements of Rule 11Aa3-2. The 
establishment of separate accounting centers for FCO's and index 
options will occur on January 1, 1996, after which the costs and 
revenues associated with FCO's and index options will be allocated to 
their respective accounting centers in accordance with the Plan.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing. Commentators are asked to address 
whether they believe the proposed amendment 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 
futherance of the purposes of the Act.
    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, 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 that may be 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 
offices of OPRA. All submissions should refer to File No. S7-8-90 and 
should be submitted by December 30, 1994.

    For the Commission by the Division of Market Regulation, by 
delegated authority, 17 CFR 200.30-3(a)(29).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-30260 Filed 12-8-94; 8:45 am]
BILLING CODE 8010-01-M