81_FR_75672 81 FR 75462 - 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 Professional Subscriber Device-Based Fees and Policies with Respect to Device-Based Fees

81 FR 75462 - 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 Professional Subscriber Device-Based Fees and Policies with Respect to Device-Based Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 210 (October 31, 2016)

Page Range75462-75464
FR Document2016-26135

Federal Register, Volume 81 Issue 210 (Monday, October 31, 2016)
[Federal Register Volume 81, Number 210 (Monday, October 31, 2016)]
[Notices]
[Pages 75462-75464]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26135]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79152; File No. SR-OPRA-2016-01]


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 Professional Subscriber Device-Based Fees and Policies with 
Respect to Device-Based Fees

October 25, 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 29, 2016, 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\ The OPRA Plan 
Amendment would implement changes to the Professional Subscriber 
Device-Based Fee effective January 1, 2017. The OPRA Plan Amendment 
would also implement minor clarifying changes to the Policies with 
Respect to Device-Based Fees, effective immediately. The Commission is 
publishing this notice to provide interested persons an opportunity to 
submit written comments on the OPRA Plan amendment.
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    \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. 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.

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[[Page 75463]]

I. Description and Purpose of the Plan Amendment

(a) Fee Schedule Amendments

    The primary purpose of the proposed Fee Schedule amendments is to 
specify OPRA's Professional Subscriber Device-Based Fee effective 
commencing January 1, 2017 and make conforming changes in OPRA's 
Enterprise Rate Professional Subscriber Fee. OPRA's Enterprise Rate 
Professional Subscriber Fee is available to those Professional 
Subscribers that elect that rate in place of the regular OPRA device-
based fees.\4\
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    \4\ OPRA's Enterprise Rate is based on the number of a 
Professional Subscriber's U.S. registered representatives and 
independent investment advisers who contract with the Subscriber to 
provide advisory services to the Subscriber's customers.
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    Specifically, OPRA proposes, effective January 1, 2017, to: (1) 
Increase the current $29.50 monthly per device fee by $1.00; (2) to 
increase the Enterprise Rate, currently a monthly fee of $29.50 times 
the number of a Professional Subscriber's U.S.-based registered 
representatives, to be a monthly fee of $30.50 times the number of the 
Subscriber's U.S.-based registered representatives; and (3) make 
conforming changes to the minimum monthly fee under the Enterprise 
Rate. ``Professional Subscribers'' are persons who subscribe to OPRA 
data, do not qualify for the reduced fees charged to ``Nonprofessional 
Subscribers,'' and do not redistribute the OPRA data to third parties. 
OPRA permits the counting of ``User IDs'' as a surrogate for counting 
``devices'' for purposes of its Professional Subscriber Device-based 
Fees.\5\
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    \5\ See footnote 2 in the OPRA Fee Schedule and OPRA's Policies 
with respect to Device-based Fees.
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    The number of devices reported to OPRA as subject to Professional 
Subscriber Device-Based Fees has been steadily trending downwards over 
many years. In 2008, OPRA received device-based fees, including 
enterprise fees, with respect to approximately 210,500 devices. In 
2014, OPRA received device-based fees, including enterprise fees, with 
respect to approximately 148,400 devices, and in 2015 OPRA received 
device-based fees, including enterprise fees, with respect to 
approximately 141,300 devices. OPRA is receiving device-based fees in 
the third calendar quarter of 2016 with respect to approximately 
135,500 devices--already a reduction of approximately 4.1% from 2015. 
OPRA believes that this long-term downward trend is the result of the 
increasing use of trading algorithms and automated trading platforms 
and other fundamental changes in the securities industry, and OPRA 
anticipates that this trend is likely to continue.
    The proposed increase in the Professional Subscriber Device-Based 
Fees is consistent with OPRA's past practice of making incremental 
$1.00 increases in its monthly Professional Subscriber Device-Based 
Fees,\6\ and OPRA believes that OPRA's Professional Subscribers should 
not be surprised by the increase. The proposed increase in the 
Professional Subscriber Device-Based Fee--which is an increase of 
approximately 3.4%--will partially offset the impact on revenue of the 
reduction in the number of devices in 2016 as compared to 2015.
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    \6\ The year 2015 was an exception: For 2015, OPRA implemented 
an increase of $1.50 in its Professional Subscriber Device-Based 
Fee, because during 2015 one of OPRA's member exchanges initiated 
after-hours trading, causing OPRA to incur additional expenses 
associated with data dissemination during expanded trading hours. 
OPRA implemented $1.00/month increases in its Professional 
Subscriber Device-Based Fee for each of the years 2008-2014 and for 
the year 2016. See, Securities Exchange Act Release No. 72826, 79 FR 
48777 (August 18, 2014) (File No. OPRA-2014-06) and Securities 
Exchange Act Release No. 77585, 81 FR 22668 (April 18, 2016) (File 
No. OPRA-2015-02).
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    A secondary purpose of the proposed Fee Schedule amendments is to 
add the word ``display'' in the statements of the monthly Professional 
Subscriber Device-Based Fees for the periods commencing on January 1, 
2016 and January 1, 2017. A few OPRA Professional Subscribers have 
asked whether, if a device is subject to the Professional Subscriber 
Device-Based Fees, it is therefore not subject to the OPRA Non-Display 
Use Fees, and suggested that a Subscriber could perhaps avoid payment 
of Non-Display Use Fees by attaching a display monitor to a server even 
if the server is being used for Non-Display Use of OPRA data. OPRA 
believes that this suggestion is not consistent even with the current 
wording of the Fee Schedule, but that the addition of the word 
``display'' will make the wording clearer in this respect.

(b) Changes in the Policies With respect to Device-Based Fees

    The proposed changes in the Policies with respect to Device-Based 
Fees are for a purpose similar to the purpose described above of adding 
the word ``display'' in the OPRA Fee Schedule, namely to avert 
misreading the Policies as saying that, if a Professional Subscriber is 
paying Device-Based Fees with respect to a device, the payment of the 
Device-Based Fees in and of itself is a sufficient basis for not paying 
Non-Display Use Fees even if the Non-Display Use Fees would otherwise 
be applicable. No Professional Subscriber has actually suggested such a 
reading to OPRA, and OPRA believes that the suggestion would be 
untenable even in terms of the current phrasing of the Policies, but 
OPRA believes that it is appropriate to revise the Policies to make 
clearer that the Device-based Fees may not be the only fees applicable 
to a particular device that receives OPRA data.
    The text of the amendment to the OPRA Plan is available at OPRA, 
the Commission's Public Reference Room, the OPRA 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 
participant exchanges in connection with access to or use of OPRA 
facilities. OPRA proposes to implement the changes in the Professional 
Subscriber Device-Based Fee on January 1, 2017. Implementation of the 
changes in the Professional Subscriber Device-Based Fee on January 1 is 
consistent with OPRA's prior practice with respect to changes in this 
fee, and will provide ample opportunity to give persons subject to this 
fee advance notice of the change. OPRA also proposes to implement the 
changes in the Policies with respect to Device-Based Fees immediately.
    The Commission may summarily abrogate the amendment within sixty 
days of its filing and require refiling and approval of the amendment 
by Commission order pursuant to Rule 608(b)(2) under the Act \7\ 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 Act.\8\
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    \7\ See 17 CFR 242.608(b)(2).
    \8\ See 17 CFR 242.608(b)(3)(iii).
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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. Comments may be submitted by any 
of the following methods:

[[Page 75464]]

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-OPRA-2016-01 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-2016-01. 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-2016-01 and should be 
submitted on or before November 21, 2016.

    By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2016-26135 Filed 10-28-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                75462                          Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Notices

                                                and have recently been told that their                    market system, or otherwise in                           By the Commission.
                                                competitors may not be paying the fees                    furtherance of the purposes of the Act.11              Brent J. Fields,
                                                on the basis of the ‘‘datafeed’’ argument.                                                                       Secretary.
                                                OPRA recognizes that equal treatment                      III. Solicitation of Comments
                                                                                                                                                                 [FR Doc. 2016–26136 Filed 10–28–16; 8:45 am]
                                                for persons similarly situated is an                        Interested persons are invited to                    BILLING CODE 8011–01–P
                                                essential aspect of its operations, and                   submit written data, views, and
                                                believes that elimination of the word                     arguments concerning the foregoing,
                                                ‘‘datafeed’’ is important to providing                    including whether the OPRA Plan                        SECURITIES AND EXCHANGE
                                                equal treatment for persons making                        amendment is consistent with the Act.                  COMMISSION
                                                Non-Display Use of OPRA data.                             Comments may be submitted by any of
                                                Similarly, OPRA believes that it is                       the following methods:
                                                appropriate to provide relief from the                                                                           [Release No. 34–79152; File No. SR–OPRA–
                                                                                                          Electronic Comments                                    2016–01]
                                                Non-Display Fee for all data recipients
                                                that make limited Category 1 Non-
                                                                                                            • Use the Commission’s Internet                      Options Price Reporting Authority;
                                                Display Use of OPRA data within the
                                                                                                          comment form (http://www.sec.gov/                      Notice of Filing and Immediate
                                                scope of the exception. Finally, OPRA
                                                                                                          rules/sro.shtml); or                                   Effectiveness of Proposed Amendment
                                                believes that it is appropriate to
                                                reinforce the concept that Non-Display                      • Send an email to rule-comments@                    to the Plan for Reporting of
                                                Use Fees would be applicable if Non-                      sec.gov. Please include File No. SR–                   Consolidated Options Last Sale
                                                Display Use is being made of OPRA                         OPRA–2016–02 on the subject line.                      Reports and Quotation Information To
                                                data, even if the Non-Display Use is                                                                             Amend the Professional Subscriber
                                                                                                          Paper Comments                                         Device-Based Fees and Policies with
                                                being made on a device that is subject
                                                to Professional Subscriber Device-Based                     • Send paper comments in triplicate                  Respect to Device-Based Fees
                                                Fees, again in furtherance of the                         to Secretary, Securities and Exchange                  October 25, 2016.
                                                fundamental concept that persons                          Commission, 100 F Street NE.,
                                                similarly situated should be treated                      Washington, DC 20549–1090.                                Pursuant to Section 11A of the
                                                equally.                                                                                                         Securities Exchange Act of 1934
                                                                                                          All submissions should refer to File                   (‘‘Act’’) 1 and Rule 608 thereunder,2
                                                   The text of the amendment to the                       Number SR–OPRA–2016–02. This file
                                                OPRA Plan is available at OPRA, the                                                                              notice is hereby given that on
                                                                                                          number should be included on the                       September 29, 2016, the Options Price
                                                Commission’s Public Reference Room,                       subject line if email is used. To help the
                                                the OPRA Web site at http://                                                                                     Reporting Authority (‘‘OPRA’’)
                                                                                                          Commission process and review your                     submitted to the Securities and
                                                opradata.com, and on the Commission’s
                                                                                                          comments more efficiently, please use                  Exchange Commission (‘‘Commission’’)
                                                Web site at www.sec.gov.
                                                                                                          only one method. The Commission will                   an amendment to the Plan for Reporting
                                                II. Implementation of the OPRA Plan                       post all comments on the Commission’s                  of Consolidated Options Last Sale
                                                Amendment                                                 Internet Web site (http://www.sec.gov/
                                                                                                                                                                 Reports and Quotation Information
                                                                                                          rules/sro.shtml). Copies of the
                                                  Pursuant to paragraph (b)(3)(i) of Rule                                                                        (‘‘OPRA Plan’’).3 The OPRA Plan
                                                                                                          submission, all subsequent
                                                608 of Regulation NMS under the Act,                                                                             Amendment would implement changes
                                                                                                          amendments, all written statements
                                                OPRA designated this amendment as                                                                                to the Professional Subscriber Device-
                                                                                                          with respect to the OPRA Plan
                                                establishing or changing fees or other                    amendment that are filed with the                      Based Fee effective January 1, 2017. The
                                                charges collected on behalf of all of the                 Commission, and all written                            OPRA Plan Amendment would also
                                                OPRA Participant exchanges in                             communications relating to the OPRA                    implement minor clarifying changes to
                                                connection with access to or use of                       Plan amendment between the                             the Policies with Respect to Device-
                                                OPRA facilities. OPRA proposes to                         Commission and any person, other than                  Based Fees, effective immediately. The
                                                implement the revisions in the Non-                       those that may be withheld from the                    Commission is publishing this notice to
                                                Display Use Fee footnotes that are                        public in accordance with the                          provide interested persons an
                                                described in this amendment on                            provisions of 5 U.S.C. 552, will be                    opportunity to submit written
                                                November 1, 2016. According to OPRA,                      available for Web site viewing and                     comments on the OPRA Plan
                                                implementation of the revisions as of                     printing in the Commission’s Public                    amendment.
                                                that date will permit OPRA to provide                     Reference Room, 100 F Street NE.,
                                                persons that may be affected by these                     Washington, DC 20549, on official                        1 15 U.S.C. 78k–1.
                                                changes with thirty days’ notice of the                   business days between the hours of                       2 17 CFR 242.608.
                                                changes.                                                  10:00 a.m. and 3:00 p.m. Copies of such
                                                                                                                                                                   3 The OPRA Plan is a national market system plan

                                                                                                                                                                 approved by the Commission pursuant to Section
                                                  The Commission may summarily                            filing also will be available for                      11A of the Act and Rule 608 thereunder. See
                                                abrogate the amendment within sixty                       inspection and copying at the principal                Securities Exchange Act Release No. 17638 (March
                                                days of its filing and require refiling and               office of OPRA. All comments received                  18, 1981), 22 S.E.C. Docket 484 (March 31, 1981).
                                                approval of the amendment by                              will be posted without change; the                     The full text of the OPRA Plan is available at http://
                                                                                                                                                                 www.opradata.com. The OPRA Plan provides for
                                                Commission order pursuant to Rule                         Commission does not edit personal                      the collection and dissemination of last sale and
                                                608(b)(2) under the Act 10 if it appears                  identifying information from                           quotation information on options that are traded on
                                                to the Commission that such action is                     submissions. You should submit only                    the participant exchanges. The fourteen participants
sradovich on DSK3GMQ082PROD with NOTICES




                                                necessary or appropriate in the public                    information that you wish to make                      to the OPRA Plan are BATS Exchange, Inc., BOX
                                                                                                                                                                 Options Exchange, LLC, Chicago Board Options
                                                interest, for the protection of investors,                available publicly. All submissions                    Exchange, Incorporated, C2 Options Exchange,
                                                or the maintenance of fair and orderly                    should refer to File Number SR–OPRA–                   Incorporated, EDGX Exchange, Inc., International
                                                markets, to remove impediments to, and                    2016–02 and should be submitted on or                  Securities Exchange, LLC, ISE Gemini, LLC, ISE
                                                perfect the mechanisms of, a national                     before November 21, 2016.                              Mercury,LLC, Miami International Securities
                                                                                                                                                                 Exchange, LLC, NASDAQ OMX BX, Inc., NASDAQ
                                                                                                                                                                 OMX PHLX LLC, The NASDAQ Stock Market LLC,
                                                  10 See   17 CFR 242.608(b)(2).                            11 See   17 CFR 242.608(b)(3)(iii).                  NYSE MKT LLC, and NYSE Arca, Inc.



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                                                                             Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Notices                                                75463

                                                I. Description and Purpose of the Plan                  industry, and OPRA anticipates that this               has actually suggested such a reading to
                                                Amendment                                               trend is likely to continue.                           OPRA, and OPRA believes that the
                                                                                                           The proposed increase in the                        suggestion would be untenable even in
                                                (a) Fee Schedule Amendments                             Professional Subscriber Device-Based                   terms of the current phrasing of the
                                                   The primary purpose of the proposed                  Fees is consistent with OPRA’s past                    Policies, but OPRA believes that it is
                                                Fee Schedule amendments is to specify                   practice of making incremental $1.00                   appropriate to revise the Policies to
                                                OPRA’s Professional Subscriber Device-                  increases in its monthly Professional                  make clearer that the Device-based Fees
                                                Based Fee effective commencing                          Subscriber Device-Based Fees,6 and                     may not be the only fees applicable to
                                                January 1, 2017 and make conforming                     OPRA believes that OPRA’s Professional                 a particular device that receives OPRA
                                                changes in OPRA’s Enterprise Rate                       Subscribers should not be surprised by                 data.
                                                Professional Subscriber Fee. OPRA’s                     the increase. The proposed increase in
                                                Enterprise Rate Professional Subscriber                 the Professional Subscriber Device-                      The text of the amendment to the
                                                Fee is available to those Professional                  Based Fee—which is an increase of                      OPRA Plan is available at OPRA, the
                                                Subscribers that elect that rate in place               approximately 3.4%—will partially                      Commission’s Public Reference Room,
                                                of the regular OPRA device-based fees.4                 offset the impact on revenue of the                    the OPRA Web site at http://
                                                   Specifically, OPRA proposes, effective               reduction in the number of devices in                  opradata.com, and on the Commission’s
                                                January 1, 2017, to: (1) Increase the                   2016 as compared to 2015.                              Web site at www.sec.gov.
                                                current $29.50 monthly per device fee                      A secondary purpose of the proposed
                                                                                                                                                               II. Implementation of the OPRA Plan
                                                by $1.00; (2) to increase the Enterprise                Fee Schedule amendments is to add the
                                                Rate, currently a monthly fee of $29.50                                                                        Amendment
                                                                                                        word ‘‘display’’ in the statements of the
                                                times the number of a Professional                      monthly Professional Subscriber Device-                   Pursuant to paragraph (b)(3)(i) of Rule
                                                Subscriber’s U.S.-based registered                      Based Fees for the periods commencing                  608 of Regulation NMS under the Act,
                                                representatives, to be a monthly fee of                 on January 1, 2016 and January 1, 2017.                OPRA designated this amendment as
                                                $30.50 times the number of the                          A few OPRA Professional Subscribers                    establishing or changing fees or other
                                                Subscriber’s U.S.-based registered                      have asked whether, if a device is                     charges collected on behalf of all of the
                                                representatives; and (3) make                           subject to the Professional Subscriber                 OPRA participant exchanges in
                                                conforming changes to the minimum                       Device-Based Fees, it is therefore not                 connection with access to or use of
                                                monthly fee under the Enterprise Rate.                  subject to the OPRA Non-Display Use
                                                                                                                                                               OPRA facilities. OPRA proposes to
                                                ‘‘Professional Subscribers’’ are persons                Fees, and suggested that a Subscriber
                                                                                                                                                               implement the changes in the
                                                who subscribe to OPRA data, do not                      could perhaps avoid payment of Non-
                                                                                                                                                               Professional Subscriber Device-Based
                                                qualify for the reduced fees charged to                 Display Use Fees by attaching a display
                                                                                                        monitor to a server even if the server is              Fee on January 1, 2017. Implementation
                                                ‘‘Nonprofessional Subscribers,’’ and do
                                                                                                        being used for Non-Display Use of                      of the changes in the Professional
                                                not redistribute the OPRA data to third
                                                                                                        OPRA data. OPRA believes that this                     Subscriber Device-Based Fee on January
                                                parties. OPRA permits the counting of
                                                                                                        suggestion is not consistent even with                 1 is consistent with OPRA’s prior
                                                ‘‘User IDs’’ as a surrogate for counting
                                                ‘‘devices’’ for purposes of its                         the current wording of the Fee                         practice with respect to changes in this
                                                Professional Subscriber Device-based                    Schedule, but that the addition of the                 fee, and will provide ample opportunity
                                                Fees.5                                                  word ‘‘display’’ will make the wording                 to give persons subject to this fee
                                                   The number of devices reported to                    clearer in this respect.                               advance notice of the change. OPRA
                                                OPRA as subject to Professional                                                                                also proposes to implement the changes
                                                                                                        (b) Changes in the Policies With respect               in the Policies with respect to Device-
                                                Subscriber Device-Based Fees has been                   to Device-Based Fees
                                                steadily trending downwards over many                                                                          Based Fees immediately.
                                                years. In 2008, OPRA received device-                      The proposed changes in the Policies                   The Commission may summarily
                                                based fees, including enterprise fees,                  with respect to Device-Based Fees are                  abrogate the amendment within sixty
                                                with respect to approximately 210,500                   for a purpose similar to the purpose                   days of its filing and require refiling and
                                                devices. In 2014, OPRA received device-                 described above of adding the word                     approval of the amendment by
                                                based fees, including enterprise fees,                  ‘‘display’’ in the OPRA Fee Schedule,
                                                                                                                                                               Commission order pursuant to Rule
                                                with respect to approximately 148,400                   namely to avert misreading the Policies
                                                                                                                                                               608(b)(2) under the Act 7 if it appears to
                                                devices, and in 2015 OPRA received                      as saying that, if a Professional
                                                                                                        Subscriber is paying Device-Based Fees                 the Commission that such action is
                                                device-based fees, including enterprise                                                                        necessary or appropriate in the public
                                                fees, with respect to approximately                     with respect to a device, the payment of
                                                                                                        the Device-Based Fees in and of itself is              interest, for the protection of investors,
                                                141,300 devices. OPRA is receiving                                                                             or the maintenance of fair and orderly
                                                device-based fees in the third calendar                 a sufficient basis for not paying Non-
                                                                                                        Display Use Fees even if the Non-                      markets, to remove impediments to, and
                                                quarter of 2016 with respect to                                                                                perfect the mechanisms of, a national
                                                approximately 135,500 devices—already                   Display Use Fees would otherwise be
                                                                                                        applicable. No Professional Subscriber                 market system, or otherwise in
                                                a reduction of approximately 4.1% from                                                                         furtherance of the purposes of the Act.8
                                                2015. OPRA believes that this long-term                   6 The year 2015 was an exception: For 2015,
                                                downward trend is the result of the                     OPRA implemented an increase of $1.50 in its
                                                                                                                                                               III. Solicitation of Comments
                                                increasing use of trading algorithms and                Professional Subscriber Device-Based Fee, because
                                                automated trading platforms and other                   during 2015 one of OPRA’s member exchanges               Interested persons are invited to
                                                fundamental changes in the securities                   initiated after-hours trading, causing OPRA to incur   submit written data, views, and
                                                                                                        additional expenses associated with data               arguments concerning the foregoing,
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                        dissemination during expanded trading hours.           including whether the OPRA Plan
                                                  4 OPRA’s Enterprise Rate is based on the number
                                                                                                        OPRA implemented $1.00/month increases in its
                                                of a Professional Subscriber’s U.S. registered          Professional Subscriber Device-Based Fee for each      amendment is consistent with the Act.
                                                representatives and independent investment              of the years 2008–2014 and for the year 2016. See,     Comments may be submitted by any of
                                                advisers who contract with the Subscriber to            Securities Exchange Act Release No. 72826, 79 FR       the following methods:
                                                provide advisory services to the Subscriber’s           48777 (August 18, 2014) (File No. OPRA–2014–06)
                                                customers.                                              and Securities Exchange Act Release No. 77585, 81
                                                  5 See footnote 2 in the OPRA Fee Schedule and                                                                 7 See   17 CFR 242.608(b)(2).
                                                                                                        FR 22668 (April 18, 2016) (File No. OPRA–2015–
                                                OPRA’s Policies with respect to Device-based Fees.      02).                                                    8 See   17 CFR 242.608(b)(3)(iii).



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                                                75464                        Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Notices

                                                Electronic Comments                                     SECURITIES AND EXCHANGE                               the most significant parts of such
                                                                                                        COMMISSION                                            statements.
                                                  • Use the Commission’s Internet
                                                comment form (http://www.sec.gov/                                                                             A. Self-Regulatory Organization’s
                                                                                                        [Release No. 34–79149; File No. SR–                   Statement of the Purpose of, and
                                                rules/sro.shtml); or                                    BatsBZX–2016–65]                                      Statutory Basis for, the Proposed Rule
                                                  • Send an email to rule-comments@                                                                           Change
                                                sec.gov. Please include File No. SR–                    Self-Regulatory Organizations; Bats
                                                OPRA–2016–01 on the subject line.                       BZX Exchange, Inc.; Notice of Filing                  1. Purpose
                                                                                                        and Immediate Effectiveness of a                         The Exchange proposes to amend
                                                Paper Comments                                          Proposed Rule Change to BZX Rule                      Exchange Rule 11.13(b)(1) to describe
                                                                                                        11.13, Order Execution and Routing                    when an order to sell marked 5 as
                                                  • Send paper comments in triplicate
                                                to Secretary, Securities and Exchange                   October 25, 2016.                                     ‘‘short’’ 6 may be eligible for routing
                                                Commission, 100 F Street NE.,                              Pursuant to Section 19(b)(1) of the                when a short sale price test restriction
                                                Washington, DC 20549–1090.                              Securities Exchange Act of 1934 (the                  is in effect. Under Rule 201 of
                                                                                                        ‘‘Act’’),1 and Rule 19b–4 thereunder,2                Regulation SHO,7 a short sale order in
                                                All submissions should refer to File                                                                          a covered security 8 generally cannot be
                                                                                                        notice is hereby given that on October
                                                Number SR–OPRA–2016–01. This file                       12, 2016, Bats BZX Exchange, Inc. (the                executed or displayed by a Trading
                                                number should be included on the                        ‘‘Exchange’’ or ‘‘BZX’’) filed with the               Center,9 such as the Exchange, at a price
                                                subject line if email is used. To help the              Securities and Exchange Commission                    that is at or below the current national
                                                Commission process and review your                      (‘‘Commission’’) the proposed rule                    best bid (‘‘NBB’’) 10 when a short sale
                                                comments more efficiently, please use                   change as described in Items I, II, and               circuit breaker is in effect for the
                                                only one method. The Commission will                    III below, which Items have been                      covered security (the ‘‘short sale price
                                                post all comments on the Commission’s                   prepared by the Exchange. The                         test restriction’’).11
                                                Internet Web site (http://www.sec.gov/                                                                           Under Rule 11.13(b)(1), an order
                                                                                                        Exchange has designated this proposal
                                                rules/sro.shtml). Copies of the                                                                               marked ‘‘short’’ when a short sale price
                                                                                                        as a ‘‘non-controversial’’ proposed rule
                                                submission, all subsequent                                                                                    test restriction is in effect is not eligible
                                                                                                        change pursuant to Section 19(b)(3)(A)
                                                                                                                                                              for routing by the Exchange. If an order
                                                amendments, all written statements                      of the Act 3 and Rule 19b–4(f)(6)(iii)
                                                                                                                                                              is ineligible for routing due to a short
                                                with respect to the OPRA Plan                           thereunder,4 which renders it effective
                                                                                                                                                              sale price test restriction and such order
                                                amendment that are filed with the                       upon filing with the Commission. The
                                                                                                                                                              is an Immediate or Cancel (‘‘IOC’’)
                                                Commission, and all written                             Commission is publishing this notice to
                                                                                                                                                              Order 12 or a BZX Market Order,13 then
                                                communications relating to the OPRA                     solicit comments on the proposed rule
                                                Plan amendment between the                              change from interested persons.                         5 17  CFR 242.200(g).
                                                Commission and any person, other than                   I. Self-Regulatory Organization’s                       6 The  term ‘‘short sale’’ is defined as ‘‘any sale of
                                                those that may be withheld from the                                                                           a security which the seller does not own or any sale
                                                                                                        Statement of the Terms of the Substance               which is consummated by the delivery of a security
                                                public in accordance with the                           of the Proposed Rule Change                           borrowed by, or for the account of, the seller.’’ 17
                                                provisions of 5 U.S.C. 552, will be                                                                           CFR 242.200(a).
                                                                                                           The Exchange filed a proposal to
                                                available for Web site viewing and                                                                               7 See 17 CFR 242.201; Securities Exchange Act
                                                                                                        amend Exchange Rule 11.13(b)(1) to                    Release No. 61595 (February 26, 2010), 75 FR 11232
                                                printing in the Commission’s Public
                                                                                                        describe when an order marked as                      (March 10, 2010).
                                                Reference Room, 100 F Street NE.,                       ‘‘short’’ may be eligible for routing when               8 Rule 201(a)(1) of Regulation SHO defines the
                                                Washington, DC 20549, on official                       a short sale price test restriction is in             term ‘‘covered security’’ to mean any ‘‘NMS stock’’
                                                business days between the hours of                      effect.                                               as defined under Rule 600(b)(47) of Regulation
                                                10:00 a.m. and 3:00 p.m. Copies of such                                                                       NMS. Rule 600(b)(47) of Regulation NMS defines an
                                                                                                           The text of the proposed rule change               ‘‘NMS stock’’ as ‘‘any NMS security other than an
                                                filing also will be available for                       is available at the Exchange’s Web site               option.’’ Rule 600(b)(46) of Regulation NMS defines
                                                inspection and copying at the principal                 at www.batstrading.com, at the                        an ‘‘NMS security’’ as ‘‘any security or class of
                                                office of OPRA. All comments received                                                                         securities for which transaction reports are
                                                                                                        principal office of the Exchange, and at              collected, processed, and made available pursuant
                                                will be posted without change; the                      the Commission’s Public Reference                     to an effective transaction reporting plan, or an
                                                Commission does not edit personal                       Room.                                                 effective national market system plan for reporting
                                                identifying information from                                                                                  transactions in listed options.’’ 17 CFR
                                                                                                        II. Self-Regulatory Organization’s                    242.201(a)(1); 17 CFR 242.600(b)(46); and 17 CFR
                                                submissions. You should submit only
                                                                                                        Statement of the Purpose of, and                      242.600(b)(47).
                                                information that you wish to make                                                                                9 Rule 201(a)(9) of Regulation SHO states that the
                                                                                                        Statutory Basis for, the Proposed Rule
                                                available publicly. All submissions                     Change                                                term ‘‘Trading Center’’ shall have the same meaning
                                                should refer to File Number SR–OPRA–                                                                          as in Rule 600(b)(78) of Regulation NMS. Rule
                                                                                                          In its filing with the Commission, the              600(b)(78) of Regulation NMS defines a ‘‘Trading
                                                2016–01 and should be submitted on or                                                                         Center’’ as ‘‘a national securities exchange or
                                                before November 21, 2016.                               Exchange included statements                          national securities association that operates an SRO
                                                                                                        concerning the purpose of and basis for               trading facility, an alternative trading system, an
                                                  By the Commission.                                    the proposed rule change and discussed                exchange market maker, an OTC market maker, or
                                                Brent J. Fields,                                        any comments it received on the                       any other broker or dealer that executes orders
                                                                                                                                                              internally by trading as principal or crossing orders
                                                Secretary.                                              proposed rule change. The text of these               as agent.’’ 17 CFR 242.200(a)(9); 17 CFR
                                                [FR Doc. 2016–26135 Filed 10–28–16; 8:45 am]            statements may be examined at the                     242.600(b)(78).
sradovich on DSK3GMQ082PROD with NOTICES




                                                BILLING CODE 8011–01–P                                  places specified in Item IV below. The                   10 17 CFR 242.201(a)(4); 17 CFR 242.600(b)(42).

                                                                                                        Exchange has prepared summaries, set                     11 17 CFR 242.201(b)(1).

                                                                                                        forth in Sections A, B, and C below, of                  12 See Exchange Rule 11.9(b)(1).
                                                                                                                                                                 13 See Exchange Rule 11.9(a)(2). The Exchange

                                                                                                          1 15
                                                                                                                                                              also proposes to remove the reference to BZX
                                                                                                               U.S.C. 78s(b)(1).                              Market Orders in Rule 11.13(b)(1) as BZX Market
                                                                                                          2 17 CFR 240.19b–4.                                 Orders with a time-in-force of Day that are
                                                                                                          3 15 U.S.C. 78s(b)(3)(A).
                                                                                                                                                              ineligible for routing due to a short sale price test
                                                                                                          4 17 CFR 240.19b–4(f)(6)(iii).                      restriction pursuant to Rule 201 of Regulation SHO



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Document Created: 2018-02-02 12:13:21
Document Modified: 2018-02-02 12:13:21
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 75462 

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