[Federal Register Volume 62, Number 235 (Monday, December 8, 1997)]
[Pages 64611-64612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31960]



[Release No. 34-39380; File No. SR-OPRA-97-5]

Options Price Reporting Authority; Notice of Filing and Immediate 
Effectiveness of Amendment to OPRA Plan Revising the Allocation of 
Revenues Between OPRA's Basic Accounting Center and OPRA's Index Option 
Accounting Center

December 1, 1997.
    Pursuant to Rule 11Aa3-2 under the Securities Exchange Act of 1934 
(``Exchange Act''), notice is hereby given that on November 5, 1997, 
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 
allocation of revenues between OPRA's basic accounting center and the 
index option accounting center. OPRA has designated this proposal as 
concerned solely with administration of the Plan, 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 
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 

I. Description and Purpose of the Amendment

    The purpose of the amendment is to revise revenue allocations under 
the Plan between OPRA's basic accounting center and the index option 
accounting center. Currently, the Plan provides for

[[Page 64612]]

allocation of revenues on the basis of a 75% allocation to the basic 
accounting center and 25% to the index option accounting center. 
Because OPRA has not yet unbundled the index option service and has no 
current plans to do so, there is no specified portion of the system 
revenues derived from the index option service. When OPRA adopted the 
fixed allocations several years ago, the allocations reflected the 
relative market share at the time. However, the volume of index options 
has decreased relative to that of equity options, so that the current 
allocation formula no longer reflects the relative market share of 
index and equity options. Therefore, the amendment proposes to replace 
the existing allocation formula with a formula that is expressly based 
on current relative market share, so that as relative market share 
changes from time to time, it will no longer be necessary to amend the 
OPRA Plan in order to maintain a fair and appropriate allocation of 
these revenues. The proposed Plan amendment will change the allocations 
from a fixed basis to a relative market share basis until such time as 
OPRA might impose separate charges for access to information and 
facilities pertaining to index option securities.

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 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 will also be available at 
the principal offices of OPRA. All submissions should refer to File No. 
SR-OPRA-97-5 and should be submitted by December 29, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\2\

    \2\ 17 CFR 200.30-3(a)(29).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-31960 Filed 12-5-97; 8:45 am]