82 FR 49429 - Options Price Reporting Authority; Notice of Filing and Immediate Effectiveness of Proposed Amendment To Modify the OPRA Fee Schedule To Amend the Professional Subscriber Device-Based Fee
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 205 (October 25, 2017)
Federal Register Volume 82, Issue 205 (October 25, 2017)
| Page Range | 49429-49431 | |
| FR Document | 2017-23114 |
[Federal Register Volume 82, Number 205 (Wednesday, October 25, 2017)] [Notices] [Pages 49429-49431] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-23114] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81899; File No. SR-OPRA-2017-01] Options Price Reporting Authority; Notice of Filing and Immediate Effectiveness of Proposed Amendment To Modify the OPRA Fee Schedule To Amend the Professional Subscriber Device-Based Fee October 19, 2017. 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 27, 2017, 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, 2018. 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. 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 and a list of its fifteen participants are 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. --------------------------------------------------------------------------- I. Description and Purpose of the Plan Amendment (a) Fee Schedule Amendments The purpose of the proposed Fee Schedule amendments is to specify OPRA's Professional Subscriber Device-Based Fee effective January 1, 2018 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 [[Page 49430]] elect that rate in place of the regular OPRA device-based fees.\4\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- Specifically, it is proposed, effective January 1, 2018: To increase the current $30.50 monthly per device fee by $1.00; to increase the Enterprise Rate, currently a monthly fee of $30.50 times the number of a Professional Subscriber's U.S.-based registered representatives, to be a monthly fee of $31.50 times the number of the Subscriber's U.S.-based registered representatives; and to 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\ --------------------------------------------------------------------------- \5\ See footnote 2 in the OPRA Fee Schedule and OPRA's Policies with respect to Device-based Fees. --------------------------------------------------------------------------- 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 2015, OPRA received device-based fees, including enterprise fees, with respect to approximately 141,300 devices, and in 2016 OPRA received device-based fees, including enterprise fees, with respect to approximately 137,100 devices. OPRA is receiving device-based fees in the third calendar quarter of 2017 with respect to approximately 128,500 devices--already a reduction of approximately 6.3% from 2016. 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 3.3%--will partially offset the impact on revenue of the reduction in the number of devices in 2017 as compared to 2016. --------------------------------------------------------------------------- \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 years 2016 and 2017. See Securities Exchange Act Release Nos. 72826, 79 FR 48777 (August 18, 2014) (File No. SR-OPRA-2014-06), 77585, 81 FR 22668 (April 18, 2016) (File No. SR-OPRA-2015-02), and 79152, 81 FR 75462 (October 31, 2016) (File No. SR-OPRA-2016-01). --------------------------------------------------------------------------- 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. (b) 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 put the changes in the Professional Subscriber Device-Based Fee into effect as of January 1, 2018. 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 OPRA represents that this will provide ample opportunity to give persons subject to this fee advance notice of the change. (c) Phases of Development and Implementation Not applicable. (d) Impact on Competition OPRA believes that the proposed amendment will impose no burdens on competition that are not justified in light of the purposes of the Act. (e) Written Understanding or Agreements Among the Plan Participants Not applicable. (f) Approval of the Proposed Amendment OPRA represents that the proposed amendments to the OPRA Fee Schedule were approved in accordance with the provisions of the OPRA Plan. 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\ --------------------------------------------------------------------------- \7\ See 17 CFR 242.608(b)(2). \8\ See 17 CFR 242.608(b)(3)(iii). --------------------------------------------------------------------------- II. 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: Electronic CommentsUse 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-2017-01 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-2017-01. 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 [[Page 49431]] office of OPRA. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-OPRA-2017-01 and should be submitted on or before November 15, 2017. By the Commission. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-23114 Filed 10-24-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 205 / Wednesday, October 25, 2017 / Notices 49429
in the short term the Vendor that has or the maintenance of fair and orderly 2017–02 and should be submitted on or
had the benefit of the Enterprise Rate markets, to remove impediments to, and before November 15, 2017.
Nonpro Fee may reduce its distribution perfect the mechanisms of, a national By the Commission.
of OPRA data to Nonprofessional market system, or otherwise in Eduardo A. Aleman,
Subscribers and that these changes may furtherance of the purposes of the Act.10
Assistant Secretary.
therefore result in a decrease in OPRA’s
II. Solicitation of Comments [FR Doc. 2017–23115 Filed 10–24–17; 8:45 am]
annual revenues. In the longer term,
OPRA anticipates that it is possible that Interested persons are invited to BILLING CODE 8011–01–P
the tiered Nonprofessional Subscriber submit written data, views, and
fees may accomplish OPRA’s original arguments concerning the foregoing,
including whether the OPRA Plan SECURITIES AND EXCHANGE
expectation for the Enterprise Rate
amendment is consistent with the Act. COMMISSION
Nonpro Fee by providing an incentive
for Vendors to increase the number of Comments may be submitted by any of
[Release No. 34–81899; File No. SR–OPRA–
Nonprofessional Subscribers to whom the following methods:
2017–01]
they distribute OPRA data in view of the Electronic Comments
reduced fees in the higher tiers. Options Price Reporting Authority;
The text of the amendment to the • Use the Commission’s Internet Notice of Filing and Immediate
OPRA Plan is available at OPRA, the comment form (http://www.sec.gov/ Effectiveness of Proposed Amendment
Commission’s Public Reference Room, rules/sro.shtml); or To Modify the OPRA Fee Schedule To
the OPRA Web site at http:// • Send an email to rule-comments@ Amend the Professional Subscriber
opradata.com, and on the Commission’s sec.gov. Please include File No. SR– Device-Based Fee
Web site at www.sec.gov. OPRA–2017–02 on the subject line.
October 19, 2017.
(b) Implementation of the OPRA Plan Paper Comments
Pursuant to Section 11A of the
Amendment • Send paper comments in triplicate Securities Exchange Act of 1934
Pursuant to paragraph (b)(3)(i) of Rule to Secretary, Securities and Exchange (‘‘Act’’) 1 and Rule 608 thereunder,2
608 of Regulation NMS under the Act, Commission, 100 F Street NE., notice is hereby given that on
OPRA designated this amendment as Washington, DC 20549–1090. September 27, 2017, the Options Price
establishing or changing fees or other All submissions should refer to File Reporting Authority (‘‘OPRA’’)
charges collected on behalf of all of the Number SR–OPRA–2017–02. This file submitted to the Securities and
OPRA participant exchanges in number should be included on the Exchange Commission (‘‘Commission’’)
connection with access to or use of subject line if email is used. To help the an amendment to the Plan for Reporting
OPRA facilities. In order to give persons Commission process and review your of Consolidated Options Last Sale
subject to these fees advance notice of comments more efficiently, please use Reports and Quotation Information
the changes, OPRA proposes that they only one method. The Commission will (‘‘OPRA Plan’’).3 The OPRA Plan
go into effect on January 1, 2018. post all comments on the Commission’s amendment would implement changes
(c) Phases of Development and Internet Web site (http://www.sec.gov/ to the Professional Subscriber Device-
Implementation rules/sro.shtml). Copies of the Based Fee effective January 1, 2018. The
submission, all subsequent Commission is publishing this notice to
Not applicable. amendments, all written statements provide interested persons an
(d) Impact on Competition with respect to the OPRA Plan opportunity to submit written
amendment that are filed with the comments on the OPRA Plan
OPRA believes that the proposed amendment.
amendment will impose no burdens on Commission, and all written
competition that are not justified in communications relating to the OPRA I. Description and Purpose of the Plan
light of the purposes of the Act. Plan amendment between the Amendment
Commission and any person, other than
(e) Written Understandings or those that may be withheld from the (a) Fee Schedule Amendments
Agreements Among the Plan public in accordance with the The purpose of the proposed Fee
Participants provisions of 5 U.S.C. 552, will be Schedule amendments is to specify
Not applicable. available for Web site viewing and OPRA’s Professional Subscriber Device-
printing in the Commission’s Public Based Fee effective January 1, 2018 and
(f) Approval of the Proposed Reference Room, 100 F Street NE., make conforming changes in OPRA’s
Amendment Washington, DC 20549, on official Enterprise Rate Professional Subscriber
OPRA represents that the proposed business days between the hours of Fee. OPRA’s Enterprise Rate
amendments to the OPRA Fee Schedule 10:00 a.m. and 3:00 p.m. Copies of such Professional Subscriber Fee is available
were approved in accordance with the filing also will be available for to those Professional Subscribers that
provisions of the OPRA Plan. inspection and copying at the principal
The Commission may summarily office of OPRA. All comments received 1 15 U.S.C. 78k–1.
abrogate the amendment within sixty will be posted without change. Persons 2 17 CFR 242.608.
days of its filing and require refiling and submitting comments are cautioned that 3 The OPRA Plan is a national market system plan
we do not redact or edit personal approved by the Commission pursuant to Section
sradovich on DSK3GMQ082PROD with NOTICES
approval of the amendment by
identifying information from comment 11A of the Act and Rule 608 thereunder. See
Commission order pursuant to Rule Securities Exchange Act Release No. 17638 (March
608(b)(2) under the Act 9 if it appears to submissions. You should submit only 18, 1981), 22 S.E.C. Docket 484 (March 31, 1981).
the Commission that such action is information that you wish to make The full text of the OPRA Plan and a list of its
necessary or appropriate in the public available publicly. All submissions fifteen participants are available at http://
should refer to File Number SR–OPRA– www.opradata.com. The OPRA Plan provides for
interest, for the protection of investors, the collection and dissemination of last sale and
quotation information on options that are traded on
9 See 17 CFR 242.608(b)(2). 10 See 17 CFR 242.608(b)(3)(iii). the participant exchanges.
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![Federal Register / Vol. 82, No. 205 / Wednesday, October 25, 2017 / Notices 49431
office of OPRA. All comments received Exchange pursuant to BZX Rules 15.1(a) Exchange now proposes to amend the
will be posted without change. Persons and (c). criteria necessary to receive the
submitting comments are cautioned that The text of the proposed rule change enhanced rebate provided by Cross-
we do not redact or edit personal is available at the Exchange’s Web site Asset Tier 3. As amended, Cross-Asset
identifying information from comment at www.bats.com, at the principal office Add Volume Tier 3 would require that
submissions. You should submit only of the Exchange, and at the the Member have on BZX Options an
information that you wish to make Commission’s Public Reference Room. Options Market Maker Add OCV 10
available publicly. All submissions II. Self-Regulatory Organization’s equal to or greater than 1.85% of
should refer to File Number SR–OPRA– Statement of the Purpose of, and average OCV and that Member must also
2017–01 and should be submitted on or Statutory Basis for, the Proposed Rule add an ADV 11 equal to or greater than
before November 15, 2017. Change 0.10% of TCV.12 The Exchange
By the Commission.
proposes to implement these
In its filing with the Commission, the amendments to its fee schedule
Eduardo A. Aleman, Exchange included statements immediately.13
Assistant Secretary. concerning the purpose of and basis for
[FR Doc. 2017–23114 Filed 10–24–17; 8:45 am] the proposed rule change and discussed 2. Statutory Basis
BILLING CODE 8011–01–P any comments it received on the The Exchange believes that the
proposed rule change. The text of these proposed rule change is consistent with
statements may be examined at the the objectives of Section 6 of the Act,14
SECURITIES AND EXCHANGE places specified in Item IV below. The in general, and furthers the objectives of
COMMISSION Exchange has prepared summaries, set Section 6(b)(4),15 in particular, as it is
[Release No. 34–81906; File No. SR–
forth in Sections A, B, and C below, of designed to provide for the equitable
BatsBZX–2017–67] the most significant parts of such allocation of reasonable dues, fees and
statements. other charges among its Members and
Self-Regulatory Organizations; Bats (A) Self-Regulatory Organization’s other persons using its facilities. The
BZX Exchange, Inc.; Notice of Filing Statement of the Purpose of, and Exchange also notes that it operates in
and Immediate Effectiveness of a Statutory Basis for, the Proposed Rule a highly-competitive market in which
Proposed Rule Change Related to Change market participants can readily direct
Transaction Fees for the Exchange’s order flow to competing venues if they
Equity Platform 1. Purpose deem fee levels at a particular venue to
The Exchange proposes to amend its be excessive. The proposed rule change
October 19, 2017. reflects a competitive pricing structure
fee schedule applicable to its equities
Pursuant to Section 19(b)(1) of the trading platform (‘‘BZX Equities’’) to designed to incent market participants
Securities Exchange Act of 1934 (the amend the criteria for Cross-Asset Add to direct their order flow to the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Volume Tier 3 under footnote 1. The Exchange. The Exchange believes the
notice is hereby given that on October Exchange currently offers four Cross- rates remain competitive with those
10, 2017, Bats BZX Exchange, Inc. (the Asset Add Volume tiers under footnote charged by other venues and, therefore,
‘‘Exchange’’ or ‘‘BZX’’) filed with the 1 that provide an enhanced rebate reasonable and equitably allocated to
Securities and Exchange Commission ranging from $0.0028 to $0.0030 per Members.
(‘‘Commission’’) the proposed rule share for orders that yield fee codes B,6 Volume-based rebates and fees such
change as described in Items I, II and III V,7 and Y 8 upon a Member achieving as the proposed Cross-Asset Add
below, which Items have been prepared each tier’s required criteria. Currently, Volume Tier have been widely adopted
by the Exchange. The Exchange has under Cross-Asset Add Volume Tier 3, by equities and options exchanges and
designated the proposed rule change as Members receives an enhanced rebate of are equitable because they are open to
one establishing or changing a member $0.0028 per share where they have on all Members on an equal basis and
due, fee, or other charge imposed by the the Exchange’s equity options platform provide additional benefits or discounts
Exchange under Section 19(b)(3)(A)(ii) (‘‘BZX Options’’) an ADAV greater than that are reasonably related to the value
of the Act 3 and Rule 19b–4(f)(2) or equal to 2.00% of average OCV.9 The to an exchange’s market quality
thereunder,4 which renders the associated with higher levels of market
proposed rule change effective upon 6 Fee code B is appended to displayed orders that activity, such as higher levels of
filing with the Commission. The add liquidity to BZX (Tape B) and is provided a liquidity provision and/or growth
Commission is publishing this notice to standard rebate of $0.0025 per share. See the
Exchange’s fee schedule available at http://
solicit comments on the proposed rule www.bats.com/us/equities/membership/fee_
10 ‘‘Options Market Maker Add OCV’’ for
change from interested persons. schedule/bzx/. purposes of equities pricing means ADAV resulting
7 Fee code V is appended to displayed orders that from Market Maker orders as a percentage of OCV,
I. Self-Regulatory Organization’s add liquidity to BZX (Tape A) and is provided a using the definitions of ADAV, Market Maker and
Statement of the Terms of Substance of standard rebate of $0.0020 per share. Id. OCV as provided under the Exchange’s fee schedule
for BZX Options. Id.
the Proposed Rule Change 8 Fee code Y is appended to displayed orders that
11 ‘‘ADV’’ means average daily volume calculated
add liquidity to BZX (Tape C) and is provided a
The Exchange filed a proposal to standard rebate of $0.0020 per share. Id. as the number of shares added or removed,
amend the fee schedule applicable to 9 ‘‘OCV’’, for purposes of equities pricing means combined, per day. Id.
12 ‘‘TCV’’ means total consolidated volume
Members 5 and non-Members of the the total equity and ETF options volume that clears
calculated as the volume reported by all exchanges
in the Customer range at the Options Clearing
sradovich on DSK3GMQ082PROD with NOTICES
Corporation (‘‘OCC’’) for the month for which the and trade reporting facilities to a consolidated
1 15 U.S.C. 78s(b)(1).
fees apply, excluding volume on any day that the transaction reporting plan for the month for which
2 17 CFR 240.19b–4. the fees apply. Id.
Exchange experiences an Exchange System
3 15 U.S.C. 78s(b)(3)(A)(ii). 13 The Exchange initially filed the proposed rule
Disruption and on any day with a scheduled early
4 17 CFR 240.19b–4(f)(2).
market close, using the definition of Customer as change on September 29, 2017 (SR–BatsBZX–2017–
5 The term ‘‘Member’’ is defined as ‘‘any provided under the Exchange’s fee schedule for 64). On October 10, 2017, the Exchange withdrew
registered broker or dealer that has been admitted BZX Options. See the Exchange’s fee schedule SR–BatsBZX–2017–64 and submitted this filing.
14 15 U.S.C. 78f.
to membership in the Exchange.’’ See Exchange available at http://www.bats.com/us/equities/
Rule 1.5(n). membership/fee_schedule/bzx/. 15 15 U.S.C. 78f(b)(4).
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Document Created: 2017-10-25 01:17:05
Document Modified: 2017-10-25 01:17:05
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 49429 |
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