[Federal Register Volume 69, Number 120 (Wednesday, June 23, 2004)]
[Notices]
[Pages 35082-35083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-14145]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49871; File No. SR-OPRA-2004-03]


Options Price Reporting Authority; Notice of Filing of Proposed 
Amendment to the Plan for Reporting of Consolidated Options Last Sale 
Reports and Quotation Information To Revise Guideline 1 of the Capacity 
Guidelines To Confirm That It Is Within the Authority of the 
Independent System Capacity Advisor To Make Determinations Concerning 
the Establishment, Modification or Removal of Output Throttles From the 
OPRA System

June 16, 2004.
    Pursuant to Section 11A of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 11Aa3-2 thereunder,\2\ notice is hereby given 
that on May 7, 2004, the Options Price Reporting Authority 
(``OPRA''),\3\ submitted to the Securities and Exchange Commission 
(``Commission'') an amendment to the Plan for Reporting of Consolidated 
Options Last Sale Reports and Quotation Information (``OPRA Plan''). 
The proposed amendment would revise Guideline 1 of the Capacity 
Guidelines to confirm that it is within the authority of the 
Independent System Capacity Advisor (``ISCA'') under the OPRA Plan to 
make determinations concerning the establishment, modification or 
removal of any throttle on the output of the OPRA System. The 
Commission is publishing this notice to solicit comments from 
interested persons on the proposed OPRA Plan amendment.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 240.11Aa3-2.
    \3\ OPRA is a national market system plan approved by the 
Commission pursuant to Section 11A of the Act and Rule 11Aa3-2 
thereunder. See Securities Exchange Act Release No. 17638 (March 18, 
1981), 22 S.E.C. 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 six participants to the OPRA Plan are 
the American Stock Exchange LLC, the Boston Stock Exchange, Inc., 
the Chicago Board Options Exchange, Inc., the International 
Securities Exchange, Inc., the Pacific Exchange, Inc., and the 
Philadelphia Stock Exchange, Inc.

---------------------------------------------------------------------------

[[Page 35083]]

I. Description and Purpose of the Amendment

    Guideline 1 of the Capacity Guidelines provided for in the OPRA 
Plan sets forth the ``Function and Authority of the ISCA.'' The purpose 
of the proposed amendment to Guideline 1 is to include in the Capacity 
Guidelines an express statement that the authority of the ISCA would 
include the authority to establish a throttle limiting the output of 
the System to less than the total capacity available in the System, and 
to modify or remove any such throttles that may be established from 
time to time.\4\ OPRA believes that throttling System output to less 
than total System capacity could sometimes be an appropriate way to 
limit the maximum message-handling capacity that vendors and 
subscribers could be required to have in order to handle OPRA's maximum 
output. Previously, the authority to establish, modify or remove 
throttles on the output of the OPRA System has been exercised by OPRA's 
Policy Committee. The proposed amendment would acknowledge that, in 
light of the recent establishment of an independent entity (the ISCA) 
with responsibilities of planning and implementing System 
modifications, it would be appropriate to clarify the ISCA's authority 
to make decisions with respect to System output throttles. OPRA 
believes that providing this authority to the ISCA would assure that 
these decisions would not be influenced by competitive considerations 
among the parties to the OPRA Plan, and would not present any 
appearance of being so influenced.
---------------------------------------------------------------------------

    \4\ The output throttle that is the subject of the proposed 
amendment would serve to limit the total output of the OPRA System. 
It would be different from the OPRA System's ``dynamic throttle,'' 
which allows any unused System capacity to be temporarily and 
dynamically allocated to a participant exchange that needs 
additional capacity on a short-term, interruptible basis. Telephone 
conversation between Michael L. Meyer, Counsel to OPRA, Schiff 
Hardin LLP, and Cyndi N. Rodriguez, Special Counsel, Division of 
Market Regulation, Commission, on June 14, 2004.
---------------------------------------------------------------------------

    The text of the proposed revised Capacity Guideline 1 is set forth 
below. Proposed new language is in italics.
* * * * *
    1. Function and Authority of the ISCA. As a general matter, it is 
the responsibility of the ISCA to determine when and how to modify the 
OPRA System so that each party to the OPRA Plan may be provided with 
the System capacity it has requested. Without limiting the general 
authority of the ISCA in this regard, the ISCA is specifically 
authorized to establish a throttle on the output of the OPRA System to 
less than the total capacity available in the System and to modify or 
remove any such throttles that have been established. The ISCA will 
also determine, consistent with these Guidelines, how the costs of 
modifying, maintaining and operating the OPRA System to meet the needs 
of the parties should be allocated among the parties, and, within the 
limits of its authority under Guideline 6, how System capacity should 
be allocated among the parties in certain circumstances when available 
System capacity is not sufficient to provide each party with the 
capacity it has requested.
* * * * *

II. Implementation of Plan Amendment

    The proposed amendment will be effective upon its approval by the 
Commission pursuant to Rule 11Aa3-2 of the Act.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 240.11Aa3-2.
---------------------------------------------------------------------------

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed OPRA 
Plan amendment is consistent with the Act. Comments may be submitted by 
any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-OPRA-2004-03 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and
    Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-
0609.
    All submissions should refer to File Number SR-OPRA-2004-03. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, 
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 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 Section, 450 Fifth 
Street, NW., Washington, DC 20549. Copies of such filing also will be 
available for inspection and copying at the principal office of OPRA. 
All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-OPRA-2004-03 
and should be submitted on or before July 8, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(29).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-14145 Filed 6-22-04; 8:45 am]
BILLING CODE 8010-01-P