[Federal Register Volume 63, Number 241 (Wednesday, December 16, 1998)]
[Notices]
[Page 69354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33238]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40767; File No. SR-OPRA-98-2]


Options Price Reporting Authority; Notice of Filing and Immediate 
Effectiveness of Amendment to OPRA Plan Revising the Allocation of 
Expenses Among the Participant Exchanges

December 9, 1998.
    Pursuant to Rule 11Aa3-2 under the Securities Exchange Act of 1934 
(``Exchange Act''), notice is hereby given that on November 25, 1998, 
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 
internal allocation of operating expenses among OPRA's separate 
accounting centers. OPRA has designated this proposal as concerned 
solely with the administration of the Plan, permitting the proposal to 
become effective upon filing pursuant to Rule 11Aa3-2(c)(3)(ii) under 
the Exchange Act.\2\ The Commission is publishing this notice to 
solicit comments from interested persons on the proposed amendment.
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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. 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 the (``AMEX''); the Chicago Board 
Options Exchange (``CBOE'')' the New York Stock Exchange (``NYSE''); 
the Pacific Exchange (``PCX''); and the Philadelphia Stock Exchange 
(``PHLX'').
    \2\ 17 CFR 240.11Aa3-2(c)(3)(ii).
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I. Description and Purpose of the Amendment

    The purpose of the amendment is to revise the internal allocation 
of OPRA's operating expenses among OPRA's separate accounting centers 
to make the allocation to a given accounting center depend upon the 
percentage of OPRA's total message traffic represented by that 
accounting center. This will replace the current allocation formula 
under which operating expenses are allocated among accounting centers 
based on the proportion of OPRA's output line capacity, measured in 
kilobytes per second, that is available to each accounting center. Both 
under the current Plan and the proposal, the allocation formula applies 
only to those accounting centers for which there are separate access 
fees, which at present includes only the Basic (equity and index) and 
foreign currency option (``FCO'') accounting centers. The allocation of 
operating expenses between accounting centers for which there are 
bundled access fees (i.e., between the equity and index components of 
the Basic accounting center) will be unaffected by this proposal. Such 
expenses will continue to be allocated in the same manner as revenues, 
based on the relative number of each accounting center's cleared trades 
at The Options Clearing Corporation.
    The proposed change reflects OPRA's recent modification of its 
communications network to utilize Internet-protocol (IP) technology. As 
a result, it is no longer meaningful to determine allocation of 
expenses based on line output capacity to OPRA's accounting centers. 
Also, in light of changes in the relative volume of trading in FCO 
options, an allocation of expenses among accounting centers based on 
any measure of processor capacity is no longer considered to be 
appropriate. The proposed amendment will affect only the internal 
administration of OPRA with respect to the allocation of operating 
expenses among the Participant Exchanges, and it will have no effect on 
fees or charges paid to OPRA by vendors and subscribers.

II. Solicitation of Comments

    Pursuant to Rule 11Aa3-2(c)(3),\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),\4\ 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.
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    \3\ 17 CFR 240.11Aa3-2.
    \4\ 17 CFR 240.11Aa3-2(c)(2).
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    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed plan 
amendment is consistent with the Act. 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 plan amendment that are 
filed with the Commission, and all written communications relating to 
the proposed plan amendment 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-98-2 and should be 
submitted by January 6, 1999.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(29).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-33238 Filed 12-15-98; 8:45 am]
BILLING CODE 8010-01-M