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SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-56926; File No. SR-OPRA-2007-05]
NOTICE: NOTICES
ACTION: Options Price Reporting Authority:
SUBJECT CATEGORY: 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 Adopt New Form of Rider to OPRA's Vendor Agreement for Use by Television Companies That Wish To Disseminate OPRA Data
DOCUMENT SUMMARY: December 7, 2007.
Pursuant to Section 11A of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given that
on December 6, 2007, the Options Price Reporting Authority (``OPRA'')
submitted to the Securities and Exchange Commission (``Commission'') an
amendment to the Plan for Reporting of Consolidated Options Last Sale Reports and
[[Page 70908]]
Quotation Information (``OPRA Plan'').\3\ The proposed OPRA Plan
amendment would adopt a new form of Television Dissemination Rider to
OPRA's Vendor Agreement for use by television companies that wish to
disseminate current OPRA Data via a passive scrolling or ticker
television display. OPRA's Fee Schedule would be modified to
incorporate the fee that OPRA would charge for the dissemination of
OPRA Data in the manner discussed below. The Commission is publishing
this notice to solicit comments from interested persons on the proposed OPRA Plan amendment.
\1\ 15 U.S.C. 78k1.
\2\ 17 CFR 242.608.
\3\ The OPRA Plan is a national market system plan approved by
the Commission pursuant to Section 11A of the Act and Rule 608
thereunder (formerly Rule 11Aa32). See Securities Exchange Act
Release No. 17638 (March 18, 1981), 22 S.E.C. Docket 484 (March 31,
1981). The full text of the OPRA Plan is available at http://www.opradata.com .
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, Incorporated, the International Securities Exchange, LLC, the NYSE Arca, Inc., and the Philadelphia Stock Exchange, Inc.
I. Description and Purpose of the Amendment
OPRA proposes to amend its national market system plan by adopting
a new form of Rider to its Vendor Agreement for use by television
companies that wish to disseminate current OPRA Data from OPRA's Basic
Service via a passive scrolling or ticker television display. The OPRA
Fee Schedule would be modified to incorporate the fee that OPRA would
charge for the dissemination of OPRA Data in the manner discussed below.\4\
\4\ OPRA has filed two other filings that will affect its Fee
Schedule upon or following their effectiveness: SROPRA200703
(eliminating the ``FCO Service'' column on the Fee Schedule when all
currently outstanding physical delivery FCOs are eliminated by
expiration or by closing transaction, which could be as late as
March 14, 2008); and SROPRA200704 (amending the Fee Schedule to
specify Professional Subscriber DeviceBased Fees commencing as of
January 1 of 2008, 2009 and 2010). The changes proposed in those
filings do not affect the changes proposed to the Fee Schedule in this filing.
A company that disseminates current OPRA Data to third parties is a ``Vendor'' for OPRA's purposes, and is therefore required to sign OPRA's Vendor Agreement. As a general matter, OPRA's Vendor Agreement states that any person that receives current OPRA Data from a Vendor is a ``Subscriber'' and requires the Vendor to cause each of its Subscribers to agree to a Subscriber Agreement, either with the Vendor for the benefit of OPRA, or directly with OPRA. The new form of Rider states that this requirement does not apply to persons that receive OPRA Data in the form of a passive scrolling or ticker television display.
The Vendor Agreement also requires that the Vendor report certain information to OPRA to enable OPRA to verify the fees that the Vendor is obligated to pay OPRA. The new form of Rider to OPRA's Vendor Agreement states that the reporting requirements in the Vendor Agreement will not apply to television dissemination of OPRA Data and sets out requirements that are intended to elicit only the information that OPRA needs to verify the fees paid by a television company for television dissemination.
The OPRA Data feed includes, in addition to options last sale and
quotation data, the values of various indexes for which OPRA or one of
the OPRA participant exchanges has permission to disseminate from the
index owners together with related options market data. Some owners of
the indexes that OPRA disseminates may not wish to have OPRA grant
television companies the right to disseminate their indexes separate
from the dissemination of related options market data. To accommodate
this possibility, the Rider includes language to give OPRA the ability
to grant permission to Vendor television companies to display index
values separately from the dissemination of related options market
data, and to revoke that permission. OPRA will treat all television
companies that sign Riders identically with respect to permission to
display index values. The Rider provides that, if OPRA revokes
permission to display particular index values separately from the
dissemination of related options market data, and as a consequence the
television company Vendor no longer wishes to display OPRA Data values
and pay fees for doing so, the television company Vendor may terminate
the Rider and its Vendor Agreement, or only the Rider, effective as of
the date that the index values cease to be available to the television company Vendor.\5\
\5\ Any Vendor has the right under paragraph 1(c) of the Rider
to terminate the Rider, and under paragraph 19(d) of the OPRA form
of Vendor Agreement to terminate the Vendor Agreement, in each case
without cause upon thirty days written notice. The termination right
described in the text essentially provides comfort to a television
company Vendor that, if an index ceases to be available to the
Vendor on less than thirty days notice, the Vendor may terminate
either the Rider alone or the Rider and Vendor Agreement on the date the index ceases to be available.
Section 2 of the Rider requires a television company Vendor to
display a legend on its television display at least three times a day.
The form of the legend is the same as the legend required by the
Consolidated Tape Association (``CTA'') for its counterpart Network A
service, and the requirement with respect to the display of the legend is the same as the CTA requirement.\6\
\6\ See the CTA form of Exhibit C to its form Agreement for
Receipt and Use of Consolidated Network A Data and NYSE Market Data for ``Cable Broadcasts.''
OPRA is proposing to charge a fee for the dissemination via
television of current OPRA Data on the basis of the number of
``thousands of households reached'' by the Vendor television company's
programming. \7\ This metric is widely used in the television industry and is used by CTA for its counterpart service.
\7\ Specifically, OPRA plans to charge a fee of $.50 per 1,000
households reached. See proposed ``Television Display Fee'' on the OPRA Fee Schedule.
The text of the proposed amendment to the OPRA Plan and the proposed changes to the OPRA Fee Schedule are available at OPRA, the Commission's Public Reference Room, and http://opradata.com/pdf/proposed_tv_rider.pdf .
II. Implementation of the OPRA Plan Amendment
OPRA will begin to use the proposed form Television Dissemination
Rider to its Vendor Agreement upon its approval by the Commission
pursuant to Section 11A of the Act \8\ and Rule 608(b)(1) thereunder. \9\
\8\ 15 U.S.C. 78k1.
\9\ 17 CFR 242.608(b)(1).
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
Paper Comments
[[Page 70909]]
All submissions should refer to File Number SROPRA200705. This file number should be included on the subject line if email 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 Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 am and 3 pm. 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 SROPRA200705 and should be submitted on or before January 3, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\
\10\ 17 CFR 200.303(a)(20).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E724121 Filed 121207; 8:45 am]
BILLING CODE 801101P
SUMMARY: Consolidated Options Last Sale Reports and Quotation Information; Reporting Plan; amendments,
DOCUMENT BODY 2: December 7, 2007.
Pursuant to Section 11A of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given that
on December 6, 2007, the Options Price Reporting Authority (``OPRA'')
submitted to the Securities and Exchange Commission (``Commission'') an
amendment to the Plan for Reporting of Consolidated Options Last Sale Reports and
[[Page 70908]]
Quotation Information (``OPRA Plan'').\3\ The proposed OPRA Plan
amendment would adopt a new form of Television Dissemination Rider to
OPRA's Vendor Agreement for use by television companies that wish to
disseminate current OPRA Data via a passive scrolling or ticker
television display. OPRA's Fee Schedule would be modified to
incorporate the fee that OPRA would charge for the dissemination of
OPRA Data in the manner discussed below. The Commission is publishing
this notice to solicit comments from interested persons on the proposed OPRA Plan amendment.
\1\ 15 U.S.C. 78k1.
\2\ 17 CFR 242.608.
\3\ The OPRA Plan is a national market system plan approved by
the Commission pursuant to Section 11A of the Act and Rule 608
thereunder (formerly Rule 11Aa32). See Securities Exchange Act
Release No. 17638 (March 18, 1981), 22 S.E.C. Docket 484 (March 31,
1981). The full text of the OPRA Plan is available at http://www.opradata.com .
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, Incorporated, the International Securities Exchange, LLC, the NYSE Arca, Inc., and the Philadelphia Stock Exchange, Inc.
I. Description and Purpose of the Amendment
OPRA proposes to amend its national market system plan by adopting
a new form of Rider to its Vendor Agreement for use by television
companies that wish to disseminate current OPRA Data from OPRA's Basic
Service via a passive scrolling or ticker television display. The OPRA
Fee Schedule would be modified to incorporate the fee that OPRA would
charge for the dissemination of OPRA Data in the manner discussed below.\4\
\4\ OPRA has filed two other filings that will affect its Fee
Schedule upon or following their effectiveness: SROPRA200703
(eliminating the ``FCO Service'' column on the Fee Schedule when all
currently outstanding physical delivery FCOs are eliminated by
expiration or by closing transaction, which could be as late as
March 14, 2008); and SROPRA200704 (amending the Fee Schedule to
specify Professional Subscriber DeviceBased Fees commencing as of
January 1 of 2008, 2009 and 2010). The changes proposed in those
filings do not affect the changes proposed to the Fee Schedule in this filing.
A company that disseminates current OPRA Data to third parties is a ``Vendor'' for OPRA's purposes, and is therefore required to sign OPRA's Vendor Agreement. As a general matter, OPRA's Vendor Agreement states that any person that receives current OPRA Data from a Vendor is a ``Subscriber'' and requires the Vendor to cause each of its Subscribers to agree to a Subscriber Agreement, either with the Vendor for the benefit of OPRA, or directly with OPRA. The new form of Rider states that this requirement does not apply to persons that receive OPRA Data in the form of a passive scrolling or ticker television display.
The Vendor Agreement also requires that the Vendor report certain information to OPRA to enable OPRA to verify the fees that the Vendor is obligated to pay OPRA. The new form of Rider to OPRA's Vendor Agreement states that the reporting requirements in the Vendor Agreement will not apply to television dissemination of OPRA Data and sets out requirements that are intended to elicit only the information that OPRA needs to verify the fees paid by a television company for television dissemination.
The OPRA Data feed includes, in addition to options last sale and
quotation data, the values of various indexes for which OPRA or one of
the OPRA participant exchanges has permission to disseminate from the
index owners together with related options market data. Some owners of
the indexes that OPRA disseminates may not wish to have OPRA grant
television companies the right to disseminate their indexes separate
from the dissemination of related options market data. To accommodate
this possibility, the Rider includes language to give OPRA the ability
to grant permission to Vendor television companies to display index
values separately from the dissemination of related options market
data, and to revoke that permission. OPRA will treat all television
companies that sign Riders identically with respect to permission to
display index values. The Rider provides that, if OPRA revokes
permission to display particular index values separately from the
dissemination of related options market data, and as a consequence the
television company Vendor no longer wishes to display OPRA Data values
and pay fees for doing so, the television company Vendor may terminate
the Rider and its Vendor Agreement, or only the Rider, effective as of
the date that the index values cease to be available to the television company Vendor.\5\
\5\ Any Vendor has the right under paragraph 1(c) of the Rider
to terminate the Rider, and under paragraph 19(d) of the OPRA form
of Vendor Agreement to terminate the Vendor Agreement, in each case
without cause upon thirty days written notice. The termination right
described in the text essentially provides comfort to a television
company Vendor that, if an index ceases to be available to the
Vendor on less than thirty days notice, the Vendor may terminate
either the Rider alone or the Rider and Vendor Agreement on the date the index ceases to be available.
Section 2 of the Rider requires a television company Vendor to
display a legend on its television display at least three times a day.
The form of the legend is the same as the legend required by the
Consolidated Tape Association (``CTA'') for its counterpart Network A
service, and the requirement with respect to the display of the legend is the same as the CTA requirement.\6\
\6\ See the CTA form of Exhibit C to its form Agreement for
Receipt and Use of Consolidated Network A Data and NYSE Market Data for ``Cable Broadcasts.''
OPRA is proposing to charge a fee for the dissemination via
television of current OPRA Data on the basis of the number of
``thousands of households reached'' by the Vendor television company's
programming. \7\ This metric is widely used in the television industry and is used by CTA for its counterpart service.
\7\ Specifically, OPRA plans to charge a fee of $.50 per 1,000
households reached. See proposed ``Television Display Fee'' on the OPRA Fee Schedule.
The text of the proposed amendment to the OPRA Plan and the proposed changes to the OPRA Fee Schedule are available at OPRA, the Commission's Public Reference Room, and http://opradata.com/pdf/proposed_tv_rider.pdf .
II. Implementation of the OPRA Plan Amendment
OPRA will begin to use the proposed form Television Dissemination
Rider to its Vendor Agreement upon its approval by the Commission
pursuant to Section 11A of the Act \8\ and Rule 608(b)(1) thereunder. \9\
\8\ 15 U.S.C. 78k1.
\9\ 17 CFR 242.608(b)(1).
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
Paper Comments
[[Page 70909]]
All submissions should refer to File Number SROPRA200705. This file number should be included on the subject line if email 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 Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 am and 3 pm. 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 SROPRA200705 and should be submitted on or before January 3, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\
\10\ 17 CFR 200.303(a)(20).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E724121 Filed 121207; 8:45 am]
BILLING CODE 801101P
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