[Federal Register Volume 67, Number 28 (Monday, February 11, 2002)]
[Notices]
[Pages 6290-6291]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3236]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45384; File No. SR-OPRA-2001-03]


Options Price Reporting Authority; Order Approving Amendment to 
OPRA Plan to Exclude Foreign Currency Options from the Calculation of 
Capacity Allocation Provided for in the OPRA Plan

February 1, 2002.

I. Introduction

    On December 10, 2001, Options Price Reporting Authority 
(``OPRA''),\1\ filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission''), pursuant to Rule 11Aa3-2 under the 
Securities Exchange Act of 1934 (``Act''),\2\ an amendment to the Plan 
for Reporting of Consolidated Options Last Sale Reports and Quotation 
Information (``OPRA Plan''). The amendment would exclude foreign 
currency options (``FCOs'') from the calculation of capacity allocation 
provided for in the OPRA Plan.
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    \1\ OPRA is a national market system plan approved by the 
Commission pursuant to section 11A of the Exchange Act, 15 U.S.C. 
78k-1, and Rule 11Aa3-2 thereunder, 17 CFR 240.11Aa3-2. See 
Securities Exchange Act Release No. 17638 (March 18, 1981), 22 SEC 
Docket 484 (March 31, 1981). The OPRA Plan provides for the 
collection and dissemination of last sale and quotation information 
on options that are traded on the participant exchanges. The five 
signatories to the OPRA Plan that currently operate an options 
market are the American Stock Exchange LLC, the Chicago Board 
Options Exchange, Inc., the International Securities Exchange LLC, 
the Pacific Exchange Inc., and the Philadelphia Stock Exchange, Inc. 
The New York Stock Exchange, Inc., is a signatory to the OPRA Plan, 
but sold its options business to the Chicago Board Options Exchange, 
Inc. in 1997. See Securities Exchange Act Release No. 38542 (April 
23, 1997), 62 FR 23521 (April 30, 1997).
    \2\ 17 CFR 240.11Aa3-2.
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    The proposed amendment was published for comment in the Federal 
Register on January 4, 2002.\3\ No comments were received on the 
proposal. In this order, the Commission is approving the proposed 
amendment.
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    \3\ Securities Exchange Act Release No. 45207 (December 28, 
2001), 67 FR 619.
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II. Description of the Proposal

    OPRA proposes to revise certain provisions of Section III, 
``Definitions'' and Section V(d), ``Quarterly Calculation of Capacity 
Allocation'' in order to exclude FCOs from the calculation of system 
capacity allocation that is provided for in the OPRA Plan and make 
available exclusively for the processing and dissemination of FCO 
market data a fixed amount of system capacity as determined by OPRA 
from time to time. The proposed amendment provides that the capacity 
available for FCO market data will be capable of handling at least 350 
messages per second (``mps''), the amount currently assigned by OPRA to 
FCO market data. OPRA represents that such capacity is sufficient to 
meet the anticipated needs of the FCO market. OPRA represents that the 
proposed amendment would make no substantive change to the provisions 
of the OPRA Plan.

III. Discussion

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder.\4\ Specifically, the Commission believes that 
the proposed OPRA Plan amendment is consistent with section 11A of the 
Act \5\ and Rule 11Aa3-2 \6\thereunder in that it is 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.
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    \4\ In approving this proposed OPRA Plan amendment, the 
Commission has considered its impact on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78k-1.
    \6\ 17 CFR 240.11A3-2.
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    The Commission notes that the capacity available for FCO market 
data should be capable of handling at least 350 mps, which is the 
amount currently assigned by OPRA to FCO market data. OPRA has 
represented that such capacity is sufficient to meet the anticipated 
needs of the FCO market. The Commission also notes that OPRA has been 
advised by its Processor that exclusive of capacity set aside for the 
FCO market, the remaining capacity of the OPRA System is capable of 
handling at least 24,000 mps to process and disseminate market data for 
stock and index options. OPRA represents that this amount of system 
capacity is more than enough to fulfill OPRA's needs until the next 
planned increase in total capacity. Based on OPRA's representations, 
the Commission believes that it is reasonable for OPRA to exclude FCOs 
from the calculation of system capacity allocation and to separately 
determine a fixed amount of capacity for FCO market data. Accordingly, 
the Commission finds that the proposal is consistent with the Act.\7\
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    \7\ 15 U.S.C. 78k-1.
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IV. Conclusion

    It is therefore ordered, pursuant to Rule 11Aa3-2 under the Act,\8\ 
that the

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proposed amendment (SR-OPRA-2001-03) is approved.
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    \8\ 17 CFR 240.11Aa3-2.
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    For the Commission, by the Division of Market Regulation, pursuant 
to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(29).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-3236 Filed 2-8-02; 8:45 am]
BILLING CODE 8010-01-P