81 FR 22675 - Options Price Reporting Authority; Notice of Filing and Immediate Effectiveness of Proposed Amendment to the Plan for Reporting of Consolidated Options Last Sale Reports and Quotation Information To Amend the Redistribution Fee Set Forth in OPRA's Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 74 (April 18, 2016)
Federal Register Volume 81, Issue 74 (April 18, 2016)
| Page Range | 22675-22676 | |
| FR Document | 2016-08817 |
[Federal Register Volume 81, Number 74 (Monday, April 18, 2016)] [Notices] [Pages 22675-22676] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-08817] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77586; File No. SR-OPRA-2015-03] Options Price Reporting Authority; Notice of Filing and Immediate Effectiveness of Proposed Amendment to the Plan for Reporting of Consolidated Options Last Sale Reports and Quotation Information To Amend the Redistribution Fee Set Forth in OPRA's Fee Schedule April 12, 2016. Pursuant to Section 11A of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given that on September 22, 2015, 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 Quotation Information (``OPRA Plan'').\3\ Effective January 1, 2016, the OPRA Plan amendment revised the description of OPRA's reduced rate Redistribution Fee. The Commission is publishing this notice to provide interested persons an opportunity to submit written comments on the OPRA Plan amendment. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78k-1. \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 11Aa3-2). 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 fourteen participants to the OPRA Plan are BATS Exchange, Inc., BOX Options Exchange, LLC, Chicago Board Options Exchange, Incorporated, C2 Options Exchange, Incorporated, EDGX Exchange, Inc., International Securities Exchange, LLC, ISE Gemini, LLC, ISE Mercury, LLC, Miami International Securities Exchange, LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, The NASDAQ Stock Market LLC, NYSE MKT LLC, and NYSE Arca, Inc. --------------------------------------------------------------------------- I. Description and Purpose of the Plan Amendment The purpose of the amendment is to amend the OPRA Fee Schedule to revise the description of one of OPRA's Redistribution Fees. Specifically, the purpose of the OPRA Plan amendment is to make clear that OPRA's ``reduced rate'' Redistribution Fee of $650/month is available only to Vendor Services that are intended for Subscribers that want to query specific OPRA data, and that this fee is not available for any Vendor Service that includes a data streaming capability. In effect, the OPRA Plan amendment returns the applicability of this fee to the scope that it had when it was first implemented in 1999. An OPRA Redistribution Fee is payable by every OPRA ``Vendor.'' An OPRA ``Vendor'' is a recipient of OPRA data that redistributes the data ``externally''--that is, to persons outside the data recipient itself. OPRA has had a two-tier Redistribution Fee for many years: the basic OPRA Redistribution Fee has been $1,500/month for many years, and a reduced rate of $650/month has been available for many years.\4\ OPRA has referred to this reduced rate as the ``Internet Service Only'' rate. --------------------------------------------------------------------------- \4\ OPRA first introduced a reduced rate of $600 ``payable by those redistributors who utilize the Internet as their exclusive means of redistribution'' in 1998. See Securities Exchange Act Release No. 40791 (December 15, 1998), 63 FR 70815 (December 22, 1998) (SR-OPRA-98-03). OPRA subsequently increased the reduced rate to $650 in 2002. See Securities Exchange Act Release No. 45315 (January 18, 2002), 67 FR 4477 (January 30, 2002) (SR-OPRA-2001-05). --------------------------------------------------------------------------- The OPRA Plan amendment changed the description of the reduced rate of $650/month to specify that the reduced rate is for ``Query service only,'' rather than ``Internet service only,'' and revised the footnote that accompanies the reduced rate to state that: ``A Vendor's Service qualifies for the `Query service only' rate if the Vendor's Service provides access to OPRA Data only on a `query' basis without any auto- refreshing capability and does not redistribute OPRA Data via dedicated lines or to the systems of one or more other Vendors (sometimes referred to as `downstream Vendors') or to one or more Hosted Solutions.'' \5\ --------------------------------------------------------------------------- \5\ OPRA added the footnote that accompanies the reduced rate in File No. SR-OPRA-2011-02. See Securities Exchange Act Release No. 64819 (July 6, 2011), 76 FR 40967 (July 12, 2011). OPRA's experience has been that some Vendors have continued to assume, notwithstanding the footnote, that they qualify for the reduced rate even though they provide high message capacity data streaming services. --------------------------------------------------------------------------- When OPRA implemented the ``Internet service only'' Redistribution Fee, an ``Internet service only'' was a service that was not suitable for high-speed/high-reliability data transmission and high traffic volumes, and was a service appropriate for retail customers interested in querying specific options quotations and last sale prices. OPRA estimates that the revised definition of the reduced rate Redistribution Fee is likely to affect between 35 and 45 of its Vendors, out of a total population of roughly 200 Vendors. Many of the remaining 155 to 165 OPRA Vendors also utilize the Internet to disseminate their data services, and pay the regular OPRA Redistribution Fee. Accordingly OPRA believes that the OPRA Plan amendment will cause all Vendors that are similarly situated in terms of the means of dissemination of their data services to be subject to the same OPRA Redistribution Fee. For an OPRA Vendor that is required to pay the regular Redistribution Fee instead of the reduced rate as a result of the change, the change will result in an increase of $850/month or $10,200/ year in its OPRA Redistribution Fees. If the maximum estimated number of 45 Vendors are affected by the change and none cease to be OPRA Vendors, OPRA's annualized revenues would increase by $459,000 as a result of the change, representing approximately a 0.67% increase in OPRA's annualized revenues; any lesser number of Vendors being affected by the change would result in a smaller increase in OPRA's revenues as a result of the change. The text of the OPRA Plan amendment is available at OPRA, the Commission's Public Reference Room, on OPRA's Web site at http://opradata.com, and on the Commission's Web site at www.sec.gov. II. Implementation of the OPRA Plan Amendment Pursuant to paragraph (b)(3)(i) of Rule 608 of Regulation NMS under the Act, OPRA designated this amendment as establishing or changing fees or other charges collected on behalf of all of the OPRA participants in connection with access to or use of OPRA facilities. [[Page 22676]] OPRA put the revised description of reduced rate Redistribution Fee into effect as of January 1, 2016. III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the OPRA Plan amendment is consistent with the Act.\6\ Comments may be submitted by any of the following methods: --------------------------------------------------------------------------- \6\ Pursuant to Rule 608(b)(3)(iii) of Regulation NMS, the Commission may summarily abrogate an immediately effective NMS Plan amendment within sixty days of its filing and require refiling and approval of the amendment if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or 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 Securities Exchange Act of 1934. See 17 CFR 242.608(b)(3)(iii). The abrogation period for the OPRA Plan amendment has expired. Interested persons may nevertheless submit written comments on the OPRA Plan amendment. --------------------------------------------------------------------------- Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File No. SR-OPRA-2015-03 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-OPRA-2015-03. 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 OPRA Plan amendment that are filed with the Commission, and all written communications relating to the OPRA 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 Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. 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-2015-03 and should be submitted on or before May 9, 2016. By the Commission. Robert W. Errett, Deputy Secretary. [FR Doc. 2016-08817 Filed 4-15-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 74 / Monday, April 18, 2016 / Notices 22675
The Commission is extending this 45- 2016, the OPRA Plan amendment ‘downstream Vendors’) or to one or
day time period. revised the description of OPRA’s more Hosted Solutions.’’ 5
The Commission finds that it is reduced rate Redistribution Fee. The When OPRA implemented the
appropriate to designate a longer period Commission is publishing this notice to ‘‘Internet service only’’ Redistribution
within which to take action on the provide interested persons an Fee, an ‘‘Internet service only’’ was a
proposed rule change so that it has opportunity to submit written service that was not suitable for high-
sufficient time to consider the proposed comments on the OPRA Plan speed/high-reliability data transmission
rule change. Accordingly, the amendment. and high traffic volumes, and was a
Commission, pursuant to Section I. Description and Purpose of the Plan service appropriate for retail customers
19(b)(2) of the Act,5 designates May 30, Amendment interested in querying specific options
2016, as the date by which the quotations and last sale prices.
Commission should either approve or The purpose of the amendment is to OPRA estimates that the revised
disapprove or institute proceedings to amend the OPRA Fee Schedule to revise definition of the reduced rate
determine whether to disapprove the the description of one of OPRA’s Redistribution Fee is likely to affect
proposed rule change (File Number SR– Redistribution Fees. Specifically, the between 35 and 45 of its Vendors, out
NASDAQ–2016–023). purpose of the OPRA Plan amendment of a total population of roughly 200
is to make clear that OPRA’s ‘‘reduced Vendors. Many of the remaining 155 to
For the Commission, by the Division of rate’’ Redistribution Fee of $650/month
Trading and Markets, pursuant to delegated 165 OPRA Vendors also utilize the
is available only to Vendor Services that Internet to disseminate their data
authority.6
are intended for Subscribers that want services, and pay the regular OPRA
Robert W. Errett,
to query specific OPRA data, and that Redistribution Fee. Accordingly OPRA
Deputy Secretary. this fee is not available for any Vendor
[FR Doc. 2016–08823 Filed 4–15–16; 8:45 am]
believes that the OPRA Plan amendment
Service that includes a data streaming will cause all Vendors that are similarly
BILLING CODE 8011–01–P capability. In effect, the OPRA Plan situated in terms of the means of
amendment returns the applicability of dissemination of their data services to
this fee to the scope that it had when it be subject to the same OPRA
SECURITIES AND EXCHANGE was first implemented in 1999.
COMMISSION Redistribution Fee.
An OPRA Redistribution Fee is
For an OPRA Vendor that is required
[Release No. 34–77586; File No. SR–OPRA–
payable by every OPRA ‘‘Vendor.’’ An
to pay the regular Redistribution Fee
2015–03] OPRA ‘‘Vendor’’ is a recipient of OPRA
instead of the reduced rate as a result of
data that redistributes the data
the change, the change will result in an
Options Price Reporting Authority; ‘‘externally’’—that is, to persons outside
the data recipient itself. OPRA has had increase of $850/month or $10,200/year
Notice of Filing and Immediate in its OPRA Redistribution Fees. If the
Effectiveness of Proposed Amendment a two-tier Redistribution Fee for many
years: the basic OPRA Redistribution maximum estimated number of 45
to the Plan for Reporting of Vendors are affected by the change and
Consolidated Options Last Sale Fee has been $1,500/month for many
years, and a reduced rate of $650/month none cease to be OPRA Vendors,
Reports and Quotation Information To OPRA’s annualized revenues would
Amend the Redistribution Fee Set has been available for many years.4
OPRA has referred to this reduced rate increase by $459,000 as a result of the
Forth in OPRA’s Fee Schedule change, representing approximately a
as the ‘‘Internet Service Only’’ rate.
April 12, 2016. The OPRA Plan amendment changed 0.67% increase in OPRA’s annualized
Pursuant to Section 11A of the the description of the reduced rate of revenues; any lesser number of Vendors
Securities Exchange Act of 1934 $650/month to specify that the reduced being affected by the change would
(‘‘Act’’) 1 and Rule 608 thereunder,2 rate is for ‘‘Query service only,’’ rather result in a smaller increase in OPRA’s
notice is hereby given that on than ‘‘Internet service only,’’ and revenues as a result of the change.
September 22, 2015, the Options Price revised the footnote that accompanies The text of the OPRA Plan
Reporting Authority (‘‘OPRA’’) the reduced rate to state that: ‘‘A amendment is available at OPRA, the
submitted to the Securities and Vendor’s Service qualifies for the ‘Query Commission’s Public Reference Room,
Exchange Commission (‘‘Commission’’) service only’ rate if the Vendor’s Service on OPRA’s Web site at http://
an amendment to the Plan for Reporting provides access to OPRA Data only on opradata.com, and on the Commission’s
of Consolidated Options Last Sale a ‘query’ basis without any auto- Web site at www.sec.gov.
Reports and Quotation Information refreshing capability and does not II. Implementation of the OPRA Plan
(‘‘OPRA Plan’’).3 Effective January 1, redistribute OPRA Data via dedicated Amendment
lines or to the systems of one or more
5 15 U.S.C. 78s(b)(2). other Vendors (sometimes referred to as Pursuant to paragraph (b)(3)(i) of Rule
6 17 CFR 200.30–3(a)(31). 608 of Regulation NMS under the Act,
1 15 U.S.C. 78k–1.
Incorporated, EDGX Exchange, Inc., International OPRA designated this amendment as
2 17 CFR 242.608. Securities Exchange, LLC, ISE Gemini, LLC, ISE establishing or changing fees or other
3 The OPRA Plan is a national market system plan Mercury, LLC, Miami International Securities charges collected on behalf of all of the
approved by the Commission pursuant to Section Exchange, LLC, NASDAQ OMX BX, Inc., NASDAQ
OMX PHLX LLC, The NASDAQ Stock Market LLC,
OPRA participants in connection with
11A of the Act and Rule 608 thereunder (formerly
Rule 11Aa3–2). See Securities Exchange Act NYSE MKT LLC, and NYSE Arca, Inc. access to or use of OPRA facilities.
Release No. 17638 (March 18, 1981), 22 S.E.C. 4 OPRA first introduced a reduced rate of $600
mstockstill on DSK4VPTVN1PROD with NOTICES
Docket 484 (March 31, 1981). The full text of the ‘‘payable by those redistributors who utilize the 5 OPRA added the footnote that accompanies the
OPRA Plan is available at http:// Internet as their exclusive means of redistribution’’ reduced rate in File No. SR–OPRA–2011–02. See
www.opradata.com. The OPRA Plan provides for in 1998. See Securities Exchange Act Release No. Securities Exchange Act Release No. 64819 (July 6,
the collection and dissemination of last sale and 40791 (December 15, 1998), 63 FR 70815 (December 2011), 76 FR 40967 (July 12, 2011). OPRA’s
quotation information on options that are traded on 22, 1998) (SR–OPRA–98–03). OPRA subsequently experience has been that some Vendors have
the participant exchanges. The fourteen participants increased the reduced rate to $650 in 2002. See continued to assume, notwithstanding the footnote,
to the OPRA Plan are BATS Exchange, Inc., BOX Securities Exchange Act Release No. 45315 (January that they qualify for the reduced rate even though
Options Exchange, LLC, Chicago Board Options 18, 2002), 67 FR 4477 (January 30, 2002) (SR– they provide high message capacity data streaming
Exchange, Incorporated, C2 Options Exchange, OPRA–2001–05). services.
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![22676 Federal Register / Vol. 81, No. 74 / Monday, April 18, 2016 / Notices
OPRA put the revised description of office of OPRA. All comments received II. Self-Regulatory Organization’s
reduced rate Redistribution Fee into will be posted without change; the Statement of the Purpose of, and
effect as of January 1, 2016. Commission does not edit personal Statutory Basis for, the Proposed Rule
identifying information from Change
III. Solicitation of Comments
submissions. You should submit only In its filing with the Commission, the
Interested persons are invited to information that you wish to make
submit written data, views, and self-regulatory organization included
available publicly. All submissions statements concerning the purpose of,
arguments concerning the foregoing,
should refer to File Number SR–OPRA– and basis for, the proposed rule change
including whether the OPRA Plan
amendment is consistent with the Act.6 2015–03 and should be submitted on or and discussed any comments it received
Comments may be submitted by any of before May 9, 2016. on the proposed rule change. The text
the following methods: By the Commission. of those statements may be examined at
the places specified in Item IV below.
Electronic Comments Robert W. Errett,
The Exchange has prepared summaries,
Deputy Secretary.
• Use the Commission’s Internet set forth in sections A, B, and C below,
comment form (http://www.sec.gov/ [FR Doc. 2016–08817 Filed 4–15–16; 8:45 am] of the most significant parts of such
rules/sro.shtml); or BILLING CODE 8011–01–P statements.
• Send an email to rule-comments@ A. Self-Regulatory Organization’s
sec.gov. Please include File No. SR–
SECURITIES AND EXCHANGE Statement of the Purpose of, and
OPRA–2015–03 on the subject line.
Statutory Basis for, the Proposed Rule
COMMISSION
Paper Comments Change
• Send paper comments in triplicate [Release No. 34–77588; File No. SR– 1. Purpose
to Secretary, Securities and Exchange NYSEArca–2016–54] The Exchange proposes to amend the
Commission, 100 F Street NE.,
Washington, DC 20549–1090. Fee Schedule as follows:
Self-Regulatory Organizations; NYSE
All submissions should refer to File Arca, Inc.; Notice of Filing and Routing Fees
Number SR–OPRA–2015–03. This file Immediate Effectiveness of Proposed The Exchange proposes to modify the
number should be included on the Rule Change Amending the NYSE Arca fees that it charges for routing orders to
subject line if email is used. To help the Equities Schedule of Fees and other market centers. Currently, for the
Commission process and review your Charges for Exchange Services Exchange’s Tier 1 and Tier 2 customers,
comments more efficiently, please use the Exchange charges the following
only one method. The Commission will April 12, 2016. routing fees:
post all comments on the Commission’s • $0.0027 per share in Tape A
Pursuant to section 19(b)(1) 1 of the
Internet Web site (http://www.sec.gov/ Securities for orders routed outside the
Securities Exchange Act of 1934 (the
rules/sro.shtml). Copies of the Book to the NYSE;
submission, all subsequent ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on March • $0.0027 per share in Tape A
amendments, all written statements Securities for Primary Only Plus
with respect to the OPRA Plan 31, 2016, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with (‘‘PO+’’) Orders 4 routed to the NYSE
amendment that are filed with the that remove liquidity;
the Securities and Exchange
Commission, and all written • $0.0030 per share in Tape B
communications relating to the OPRA Commission (the ‘‘Commission’’) the
Securities for orders routed outside the
Plan amendment between the proposed rule change as described in Book to any away market center;
Commission and any person, other than Items I, II, and III below, which Items • $0.0028 per share in Tape B
those that may be withheld from the have been prepared by the self- Securities for Primary Only (‘‘PO’’)
public in accordance with the regulatory organization. The Orders 5 and PO+ Orders routed to
provisions of 5 U.S.C. 552, will be Commission is publishing this notice to NYSE MKT that remove liquidity from
available for Web site viewing and solicit comments on the proposed rule the NYSE MKT Book;
printing in the Commission’s Public change from interested persons. • $0.0030 per share in Tape B
Reference Room, 100 F Street NE., Securities for PO+ Orders routed
Washington, DC 20549, on official I. Self-Regulatory Organization’s
outside the Book to NASDAQ;
Statement of the Terms of the Substance
business days between the hours of • $0.0030 per share in Tape A and
10:00 a.m. and 3:00 p.m. Copies of such of the Proposed Rule Change Tape C Securities for orders routed
filing also will be available for The Exchange proposes to amend the outside the Book to any away market
inspection and copying at the principal center other than NYSE; and
NYSE Arca Equities Schedule of Fees
and Charges for Exchange Services • $0.0030 per share in Tape A and
6 Pursuant to Rule 608(b)(3)(iii) of Regulation
(‘‘Fee Schedule’’). The Exchange Tape C Securities for PO+ Orders routed
NMS, the Commission may summarily abrogate an
outside the Book to NASDAQ.
immediately effective NMS Plan amendment within proposes to implement the fee changes
sixty days of its filing and require refiling and effective April 1, 2016. The proposed 4 A PO+ Order is a Primary Only Order (i.e., a
approval of the amendment if it appears to the
Commission that such action is necessary or rule change is available on the market or limit order that is to be routed to the
appropriate in the public interest, for the protection Exchange’s Web site at www.nyse.com, primary market) that is entered for participation in
mstockstill on DSK4VPTVN1PROD with NOTICES
of investors, or the maintenance of fair and orderly at the principal office of the Exchange, the primary market, other than for participation in
markets, to remove impediments to, and perfect the the primary market opening or primary market
mechanisms of, a national market system, or
and at the Commission’s Public reopening. See NYSE Arca Equities Rule
otherwise in furtherance of the purposes of the Reference Room. 7.31(f)(1)(C).
Securities Exchange Act of 1934. See 17 CFR 5 A PO Order is a market or limit [sic] that is
242.608(b)(3)(iii). The abrogation period for the 1 15
routed to the primary, listing market, without
U.S.C. 78s(b)(1).
OPRA Plan amendment has expired. Interested sweeping the NYSE Arca book. See NYSE Arca
2 15 U.S.C. 78a.
persons may nevertheless submit written comments Equities Rule 7.31(f)(1). See also NYSE Arca
on the OPRA Plan amendment. 3 17 CFR 240.19b–4. Equities Rule 7.31P(f)(1).
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Document Created: 2016-04-16 01:45:46
Document Modified: 2016-04-16 01:45:46
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| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 81 FR 22675 |
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