[Federal Register Volume 63, Number 246 (Wednesday, December 23, 1998)]
[Notices]
[Pages 71174-71175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33912]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40796; File No. SR-OPRA-98-04]
Options Price Reporting Authority; Notice of Filing and Immediate
Effectiveness of Amendment to OPRA Plan Revising Certain of its
Subscriber Fees Relating to Information About Foreign Currency Options
December 15, 1998.
Pursuant to Rule 11Aa3-2 under the Securities Exchange Act of 1934
(``Exchange Act''), notice is hereby given that on December 7, 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
certain of the fees payable to OPRA by subscribers for access to OPRA's
Foreign Currency Option (``FCO'') Service. OPRA has designated this
proposal as concerned solely with establishing or changing a fee or
other charge collected on behalf of all of the OPRA participants in
connection with access to or use of OPRA facilities, permitting the
proposal to become effective upon filing pursuant to Rule 11Aa3-
2(c)(3)(i) 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
11A3-2 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
(``PHLX'').
\2\ 17 CFR 240.11Aa3-2(c)(3)(i).
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I. Description and Purpose of the Amendment
The purpose of the amendment is to revise the fees payable to OPRA
by subscribers for access to OPRA's FCO Service, which consists of
market data and related information pertaining to foreign currency
options.\3\ Currently, the FCO subscriber fee is a tiered, device-based
fee in the amount of $3.00 per device for single device subscribers,
$2.50 per device for subscribers having from two to nine devices, $2.00
per device for subscribers having from 10 to 749 devices, and $1.50 per
device for subscribers having 750 or more devices. OPRA is proposing to
increase each of these fees by the amount of $0.25 per device, so that
fees for each of the above four tiers will be $3.25, $2.75, $2.25, and
$1.75, respectively. This proposal represents the first increase in the
FCO subscriber fee since OPRA's separate FCO Service was introduced in
1996. OPRA estimates that this proposal will increase revenues derived
from the FCO subscriber free by approximately 7.4%.
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\3\ Proposed revisions to certain fees for access to information
pertaining to equity and index options provided through OPRA's Basic
Service are the subject of a separate filing. See Securities
Exchange Act Release No. 40791 (December 15, 1998) File No. SR-OPRA-
98-03.
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OPRA is proposing to increase its FCO subscriber fee in response to
past and scheduled future increases in the costs of collecting,
processing, consolidating and disseminating foreign currency options
last sale and bid/ask information. This, in turn, reflects the
continued enhancement and enlargement of systems and equipment
necessary to provide the greater capacity and enhanced reliability and
security of the OPRA system occasioned by the continuing expansion of
the listed options business. Even though the FCO business itself has
not expanded, OPRA's FCO service is required to bear a portion of the
higher costs occasioned by these enhancements to the OPRA system, and
therefore must collect additional revenues to cover these higher costs.
II. Solicitation of Comments
Pursuant to Rule 11Aa3-2(c)(3),\4\ because the amendment is
concerned solely with changing fees charged on behalf of OPRA, the
amendment is effective upon filing with the Commission. The Commission
may summarily abrogate the amendment within 60 days of its filing and
require
[[Page 71175]]
refiling and approval of the amendment by Commission order pursuant to
Rule 11Aa3-2(c)(2),\5\ 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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\4\ 17 CFR 240.11Aa3-2.
\5\ 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-98-04 and should be
submitted by January 12, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(29).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-33912 Filed 12-22-98; 8:45 am]
BILLING CODE 8010-01-M