[Federal Register Volume 69, Number 155 (Thursday, August 12, 2004)]
[Notices]
[Pages 49918-49919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18421]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50147; File No. SR-OPRA-2004-02]


Options Price Reporting Authority; Order Approving an Amendment 
to the Plan for Reporting of Consolidated Options Last Sale Reports and 
Quotation Information and Amendment No. 1 Thereto To Eliminate From the 
Plan References to the Fee Exemption Pilot Currently Provided for in 
the Plan

August 4, 2004.
    On May 7, 2004, the Options Price Reporting Authority (``OPRA'') 
submitted to the Securities and Exchange Commission (``Commission''), 
pursuant to section 11A of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 11Aa3-2 thereunder,\2\ an amendment to the Plan 
for Reporting of Consolidated Options Last Sale Reports and Quotation 
Information (``OPRA Plan'').\3\ On June 23, 2004, OPRA submitted 
Amendment No. 1 to the proposal.\4\ The proposed amendment would 
eliminate from the OPRA Plan references to the fee exemption pilot that 
expired on May 31, 2004. Notice of the proposal, as modified by 
Amendment No. 1, was published in the Federal Register on July 8, 
2004.\5\ The Commission received no comment letters on the proposed 
OPRA Plan amendment. This order approves the proposal, as amended.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 240.11Aa3-2.
    \3\ The OPRA Plan 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.
    \4\ See letter from Michael L. Meyer, Counsel to OPRA, Schiff 
Hardin LLP, to Deborah Flynn, Assistant Director, Division of Market 
Regulation, Commission, dated June 22, 2004, replacing in its 
entirety the initial proposal filed on May 7, 2004.
    \5\ See Securities Exchange Act Release No. 49958 (July 1, 
2004), 69 FR 41312.
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    The purpose of the proposed OPRA Plan amendment is to eliminate 
references to the fee exemption pilot in section VII(d)(vi) of the OPRA 
Plan that provided a temporary exemption from OPRA fees for members of 
exchanges that were parties to the OPRA Plan and that acted as brokers 
or dealers on traditional exchange trading floors or as specialists or 
market makers on electronic exchanges or electronic facilities of 
exchanges. OPRA also proposes to eliminate section V(e) of the OPRA 
Plan, which provided that parties to the OPRA Plan could access OPRA 
information on their trading floors or at their other business 
locations without being obligated to pay fees to OPRA. OPRA states that 
the effect of the proposed amendment would be to make all devices that 
are used to access options market information furnished by OPRA subject 
to OPRA's information fees.
    OPRA also proposes to amend the definitions of ``vendor'' and 
``subscriber'' set forth in paragraphs (k) and (l) of section II of the 
OPRA Plan to confirm that the receipt of options market data by an 
exchange over devices maintained by such exchange at its business 
locations would not involve redistribution of the data by such 
exchange, notwithstanding that members of such exchange could be able 
to access the information over those devices. Finally, as a matter of 
``housekeeping,'' OPRA proposes to delete from section V(c)(i) of the 
OPRA Plan language concerning the introduction of OPRA's BBO Service in 
2003 since the BBO Service is now in place.
    After careful review, the Commission finds that the proposed OPRA 
Plan amendment is consistent with the

[[Page 49919]]

requirements of the Act and the rules and regulations thereunder.\6\ 
The Commission believes that the proposed OPRA Plan amendment is 
consistent with section 11A of the Act \7\ and Rule 11Aa3-2 thereunder 
\8\ 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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    \6\ 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).
    \7\ 15 U.S.C. 78k-1.
    \8\ 17 CFR 240.11Aa3-2.
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    Specifically, given the expiration of the fee exemption pilot for 
accessing OPRA information, the Commission finds that it is appropriate 
to eliminate any references within the OPRA Plan to such fee exemption 
so as to avoid confusion. Moreover, the Commission believes that 
subjecting all devices used to access OPRA information, whether on-
floor or off-floor, to OPRA's information fees should help to ensure 
that the various participants do not receive disparate treatment under 
the OPRA Plan. The Commission also believes that OPRA's proposed 
amendments to the definitions of ``vendor'' and ``subscriber'' and the 
deletion of language concerning the introduction of its BBO Service 
should promote clarity within the language of the OPRA Plan.
    It is therefore ordered, pursuant to section 11a of the Act,\9\ and 
Rule 11Aa3-2 thereunder,\10\ that the proposed OPRA Plan amendment (SR-
OPRA-2004-02), as modified by Amendment No. 1, be, and it hereby is, 
approved.
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    \9\ 15 U.S.C. 78k-1.
    \10\ 17 CFR 240.11Aa3-2.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(29).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-18421 Filed 8-11-04; 8:45 am]
BILLING CODE 8010-01-P