Options Price Reporting Authority; Notice of Filing of Proposed Amendment to the Plan for Reporting of Consolidated Options Last Sale Reports and Quotation Information To Adopt New Form of “Vendor Affiliate Agreement”, 16078-16079 [E8-6124]

Download as PDF 16078 Federal Register / Vol. 73, No. 59 / Wednesday, March 26, 2008 / Notices Issued at Rockville, Maryland this 20th day of March 2008. E. Roy Hawkens, Chief Administrative Judge, Atomic Safety and Licensing Board Panel. [FR Doc. E8–6222 Filed 3–25–08; 8:45 am] BILLING CODE 7590–01–P POSTAL REGULATORY COMMISSION Facility Tour Postal Regulatory Commission. Notice of Commission tour. AGENCY: ACTION: On Thursday, March 27, 2008, Postal Regulatory Commissioners and advisory staff members will observe the Flats Sequencing System at the Postal Service’s facility at Dulles Airport in Chantilly, Virginia. DATES: March 27, 2008. FOR FURTHER INFORMATION CONTACT: Ann C. Fisher, Chief of Staff, Postal Regulatory Commission, at 202–789– 6803 or ann.fisher@prc.gov. SUMMARY: Steven W. Williams, Secretary. [FR Doc. E8–6187 Filed 3–25–08; 8:45 am] BILLING CODE 7710–FW–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57530; File No. SR–OPRA– 2008–01] Options Price Reporting Authority; Notice of Filing of Proposed Amendment to the Plan for Reporting of Consolidated Options Last Sale Reports and Quotation Information To Adopt New Form of ‘‘Vendor Affiliate Agreement’’ March 19, 2008. Pursuant to Section 11A of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 608 thereunder,2 notice is hereby given that on March 3, 2008, 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 1 15 U.S.C. 78k–1. 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. pwalker on PROD1PC71 with NOTICES 2 17 VerDate Aug<31>2005 18:52 Mar 25, 2008 Jkt 214001 The proposed OPRA Plan amendment would adopt a new form of ‘‘Vendor Affiliate Agreement’’ that may be used by an affiliate of an OPRA ‘‘Vendor’’ that wants also to become a Vendor. OPRA’s Fee Schedule would be modified to state that OPRA will waive its Redistribution Fee for all affiliates in a corporate family with which OPRA agrees to Vendor Affiliate Agreements. The Commission is publishing this notice to solicit comments from interested persons on the proposed OPRA Plan amendment. I. Description and Purpose of the Amendment The purpose of the proposed amendment to adopt a new form of ‘‘Vendor Affiliate Agreement’’ that may be used by an affiliate of an OPRA ‘‘Vendor’’ that wants to also become an OPRA ‘‘Vendor’’ and to specify in OPRA’s Fee Schedule that OPRA will waive its ‘‘Redistribution Fee’’ for affiliates with which OPRA agrees to Vendor Affiliate Agreements. OPRA’s form of Vendor Agreement authorizes only the Vendor itself, and not any of its affiliates, to disseminate OPRA Data. As a matter of policy, OPRA has permitted Vendors to disseminate OPRA Data through wholly-owned subsidiaries. However, OPRA’s policy has been not to permit Vendors to disseminate OPRA Data through other affiliates that have not themselves signed Vendor Agreements with OPRA. Many Vendors conduct business through corporate families, for a variety of reasons. OPRA requires each OPRA Vendor to pay a monthly ‘‘Redistribution Fee,’’ 4 and OPRA has from time to time received requests to alleviate the financial consequence that OPRA’s current policy imposes on some Vendor families. Accordingly, OPRA is proposing to amend its Fee Schedule to provide that OPRA will waive its Redistribution Fee for Vendor affiliates that themselves become Vendors pursuant to ‘‘Vendor Affiliate Agreements,’’ and is proposing to adopt a new form of ‘‘Vendor Affiliate Agreement.’’ In effect, the form of Vendor Affiliate Agreement is a ‘‘short form’’ Vendor Agreement that can be 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 seven participants to the OPRA Plan are the American Stock Exchange LLC, the Boston Stock Exchange, Inc., the Chicago Board Options Exchange, Incorporated, the International Securities Exchange, LLC, the NYSE Arca, Inc., the Philadelphia Stock Exchange, Inc., and the NASDAQ Stock Market LLC. 4 OPRA’s Redistribution Fee is currently $650/ month for ‘‘Internet service only’’ Vendors, and $1,500/month for all other Vendors. PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 signed by an additional member of a Vendor’s corporate family. The proposed form would require the additional member of a corporate family to acknowledge that it is subject to and bound by the terms of the ‘‘lead’’ Vendor’s Vendor Agreement just as if it had signed the Agreement itself. The proposed form is designed so that it can be used by affiliates of a current OPRA Vendor without any need for the current Vendor to sign a new Vendor Agreement.5 The text of the proposed amendment to the OPRA Plan and the proposed changes to the OPRA Fee Schedule are available at OPRA, the Commission’s Public Reference Room, and http:// opradata.com. II. Implementation of the OPRA Plan Amendment OPRA will begin to use the proposed form of Vendor Affiliate Agreement upon its approval by the Commission pursuant to Section 11A of the Act 6 and Rule 608(b)(1) thereunder.7 III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed OPRA Plan amendment is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–;OPRA–2008–01 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–OPRA–2008–01. This file number should be included on the subject line if e-mail 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 5 However, the current Vendor (or a new ‘‘lead’’ Vendor) would be required to identify its affiliate(s) that will sign Vendor Affiliate Agreements in its ‘‘Description of Vendor’s Service’’—Exhibit A to its Vendor Agreement—as in effect from time to time. The lead Vendor would also be required to describe the dissemination of OPRA Data by such affiliate(s) in its Exhibit A. 6 15 U.S.C. 78k–1. 7 17 CFR 242.608(b)(1). E:\FR\FM\26MRN1.SGM 26MRN1 Federal Register / Vol. 73, No. 59 / Wednesday, March 26, 2008 / Notices Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed plan amendment that are filed with the Commission, and all written communications relating to the proposed plan amendment between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 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–2008–01 and should be submitted on or before April 16, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–6124 Filed 3–25–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57531; File No. SR–Amex– 2008–24] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Additional Options Classes in the Options Penny Quoting Pilot Program pwalker on PROD1PC71 with NOTICES March 19, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on March 17, 2008, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by the Amex. The Exchange has designated this 8 17 CFR 200.30–3(a)(29). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 18:52 Mar 25, 2008 Jkt 214001 proposal as one constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule under Section 19(b)(3)(A)(i) of the Act 3 and Rule 19b–4(f)(1) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Amex proposes to identify the additional options classes that will be subject to the current pilot program for the quoting of options classes in pennies (the ‘‘Penny Quoting Pilot Program’’ or ‘‘Pilot Program’’). The text of the proposed rule change is available on the Exchange’s Web site (http://www.amex.com), at the Amex’s Office of the Secretary, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Amex included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Amex has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Amex proposes to identify for market participants the additional options classes that will be included in the current Penny Quoting Pilot Program.5 The Exchange believes that this proposal is necessary in order to adequately notify market participants regarding the upcoming addition of options classes that will be included in the current Pilot Program. The current Penny Quoting Pilot Program includes thirty-five (35) 3 15 U.S.C. 78s(b)(3)(A)(i). CFR 240.19b–4(f)(1). 5 See Securities Exchange Act Release Nos. 55162 (January 24, 2007), 72 FR 4738 (February 1, 2007) (SR–Amex–2006–106); 56159 (July 27, 2007), 72 FR 43300 (August 3, 2007) (SR–Amex–2007–76); and 56567 (September 27, 2007), 72 FR 56396 (October 3, 2007) (SR–Amex–2007–96) (the ‘‘September 2007 Order’’). 4 17 PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 16079 options classes. As set forth in the September 2007 Order, the expansion of the Pilot Program is to occur in two (2) phases. Under the first phase, which began on September 28, 2007, the Exchange expanded the Pilot Program to include an additional twenty-two (22) options classes. These consisted of the most actively-traded options classes (excluding Google (GOOG), Nasdaq-100 Index (NDX) and the Russell 2000 Index (RUT)). The thirty-five (35) current options classes included in the Penny Quoting Pilot Program represent approximately 35% of total industry options volume. The second phase, which is scheduled to commence on March 28, 2008, will add twenty-eight (28) additional option classes. The Commission in the September 2007 Order previously approved this expansion of twenty-eight additional options classes, however, at that time, the actual identity of the options classes to be included in the Pilot Program was undecided. Accordingly, the instant proposal identifies these twenty-eight (28) additional options classes for phase two of the Pilot Program. Attached as Exhibit 2 to the filing is a draft Regulatory Circular setting forth the list of additional options classes to be included in the Pilot Program. The Pilot Program will then consist of sixty-three (63) options classes representing approximately 50% of total industry options volume. The current Penny Quoting Pilot Program will terminate, unless extended, on March 27, 2009. The Exchange continues to believe that the additional options classes that may quote in pennies under the Pilot Program is reasonable given the system capacity constraints and quote mitigation strategies in place at the Amex as well as the other options exchanges. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act 6 in general and furthers the objectives of Section 6(b)(5),7 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Exchange believes that the identity of the additional options classes in this filing will provide market participants 6 15 7 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). E:\FR\FM\26MRN1.SGM 26MRN1

Agencies

[Federal Register Volume 73, Number 59 (Wednesday, March 26, 2008)]
[Notices]
[Pages 16078-16079]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-6124]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57530; File No. SR-OPRA-2008-01]


Options Price Reporting Authority; Notice of Filing of Proposed 
Amendment to the Plan for Reporting of Consolidated Options Last Sale 
Reports and Quotation Information To Adopt New Form of ``Vendor 
Affiliate Agreement''

March 19, 2008.
    Pursuant to Section 11A of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given that 
on March 3, 2008, 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 proposed OPRA 
Plan amendment would adopt a new form of ``Vendor Affiliate Agreement'' 
that may be used by an affiliate of an OPRA ``Vendor'' that wants also 
to become a Vendor. OPRA's Fee Schedule would be modified to state that 
OPRA will waive its Redistribution Fee for all affiliates in a 
corporate family with which OPRA agrees to Vendor Affiliate Agreements. 
The Commission is publishing this notice to solicit comments from 
interested persons on the proposed 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 seven participants to the OPRA Plan 
are the American Stock Exchange LLC, the Boston Stock Exchange, 
Inc., the Chicago Board Options Exchange, Incorporated, the 
International Securities Exchange, LLC, the NYSE Arca, Inc., the 
Philadelphia Stock Exchange, Inc., and the NASDAQ Stock Market LLC.
---------------------------------------------------------------------------

I. Description and Purpose of the Amendment

    The purpose of the proposed amendment to adopt a new form of 
``Vendor Affiliate Agreement'' that may be used by an affiliate of an 
OPRA ``Vendor'' that wants to also become an OPRA ``Vendor'' and to 
specify in OPRA's Fee Schedule that OPRA will waive its 
``Redistribution Fee'' for affiliates with which OPRA agrees to Vendor 
Affiliate Agreements.
    OPRA's form of Vendor Agreement authorizes only the Vendor itself, 
and not any of its affiliates, to disseminate OPRA Data. As a matter of 
policy, OPRA has permitted Vendors to disseminate OPRA Data through 
wholly-owned subsidiaries. However, OPRA's policy has been not to 
permit Vendors to disseminate OPRA Data through other affiliates that 
have not themselves signed Vendor Agreements with OPRA. Many Vendors 
conduct business through corporate families, for a variety of reasons. 
OPRA requires each OPRA Vendor to pay a monthly ``Redistribution Fee,'' 
\4\ and OPRA has from time to time received requests to alleviate the 
financial consequence that OPRA's current policy imposes on some Vendor 
families.
---------------------------------------------------------------------------

    \4\ OPRA's Redistribution Fee is currently $650/month for 
``Internet service only'' Vendors, and $1,500/month for all other 
Vendors.
---------------------------------------------------------------------------

    Accordingly, OPRA is proposing to amend its Fee Schedule to provide 
that OPRA will waive its Redistribution Fee for Vendor affiliates that 
themselves become Vendors pursuant to ``Vendor Affiliate Agreements,'' 
and is proposing to adopt a new form of ``Vendor Affiliate Agreement.'' 
In effect, the form of Vendor Affiliate Agreement is a ``short form'' 
Vendor Agreement that can be signed by an additional member of a 
Vendor's corporate family. The proposed form would require the 
additional member of a corporate family to acknowledge that it is 
subject to and bound by the terms of the ``lead'' Vendor's Vendor 
Agreement just as if it had signed the Agreement itself. The proposed 
form is designed so that it can be used by affiliates of a current OPRA 
Vendor without any need for the current Vendor to sign a new Vendor 
Agreement.\5\
---------------------------------------------------------------------------

    \5\ However, the current Vendor (or a new ``lead'' Vendor) would 
be required to identify its affiliate(s) that will sign Vendor 
Affiliate Agreements in its ``Description of Vendor's Service''--
Exhibit A to its Vendor Agreement--as in effect from time to time. 
The lead Vendor would also be required to describe the dissemination 
of OPRA Data by such affiliate(s) in its Exhibit A.
---------------------------------------------------------------------------

    The text of the proposed amendment to the OPRA Plan and the 
proposed changes to the OPRA Fee Schedule are available at OPRA, the 
Commission's Public Reference Room, and http://opradata.com.

II. Implementation of the OPRA Plan Amendment

    OPRA will begin to use the proposed form of Vendor Affiliate 
Agreement upon its approval by the Commission pursuant to Section 11A 
of the Act \6\ and Rule 608(b)(1) thereunder.\7\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78k-1.
    \7\ 17 CFR 242.608(b)(1).
---------------------------------------------------------------------------

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed OPRA 
Plan amendment is consistent with the Act. Comments may be submitted by 
any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-;OPRA-2008-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-OPRA-2008-01. This file 
number should be included on the subject line if e-mail 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

[[Page 16079]]

Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the 
submission, all subsequent amendments, all written statements with 
respect to the proposed plan amendment that are filed with the 
Commission, and all written communications relating to the proposed 
plan amendment between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for inspection and copying in the 
Commission's Public Reference Room, 100 F Street, NE., Washington, DC 
20549, on official business days between the hours of 10 a.m. and 3 
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-2008-01 and should be submitted on 
or before April 16, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(29).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-6124 Filed 3-25-08; 8:45 am]
BILLING CODE 8011-01-P