Options Price Reporting Authority; Notice of Filing and Immediate Effectiveness of Proposed Amendment To Modify the OPRA Fee Schedule Regarding Caps on Certain Port Fees, 50939-50943 [2023-16392]

Download as PDF Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Notices withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR–EMERALD–2023–16 and should be submitted on or before August 23, 2023. Amendment, along with information pursuant to Rule 608(a) under the Act.5 A copy of the OPRA Fee Schedule, marked to show the proposed Amendment, is Attachment A to this notice. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Sherry R. Haywood, Assistant Secretary. I. Rule 608(a) [FR Doc. 2023–16390 Filed 8–1–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–98012; File No. SR–OPRA– 2023–01] Options Price Reporting Authority; Notice of Filing and Immediate Effectiveness of Proposed Amendment To Modify the OPRA Fee Schedule Regarding Caps on Certain Port Fees July 27, 2023. Pursuant to Section 11A of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 608 thereunder,2 notice is hereby given that on July 17, 2023, the Options Price Reporting Authority (‘‘OPRA’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed amendment to the Plan for Reporting of Consolidated Options Last Sale Reports and Quotation Information (‘‘OPRA Plan’’).3 The proposed OPRA Plan amendment (‘‘Amendment’’) would amend the OPRA Fee Schedule. The Commission is publishing this notice to provide interested persons an opportunity to submit written comments on the Amendment. The Amendment has been filed by the Participants pursuant to Rule 608(b)(2) under Regulation NMS.4 The Commission is publishing this notice to solicit comments from interested persons on the proposed Amendment. Set forth in Section I, which was prepared and filed with the Commission by the Participants, is the statement of the purpose and summary of the 12 17 CFR 200.30–3(a)(12). 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 participants are available at https:// www.opraplan.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. 4 17 CFR 242.608(b)(2). ddrumheller on DSK120RN23PROD with NOTICES1 1 15 VerDate Sep<11>2014 19:49 Aug 01, 2023 Jkt 259001 (a) Statement of Purpose The purpose of the amendment is to amend the OPRA Fee Schedule to provide public notice of the fact that OPRA negotiated terms in the 2021 Processor Services Agreement (the ‘‘2021 Processor Agreement’’) between OPRA and the Securities Industry Automation Corporation (‘‘SIAC’’) which impose caps on certain port fees that can be charged per month when SIAC, either directly or through a third party, provides direct access to OPRA data to any person authorized by OPRA to receive direct access to OPRA data. Under the 2021 Processor Agreement, SIAC is OPRA’s ‘‘processor,’’ meaning that SIAC gathers the last sale and quote information from each of the OPRA members, consolidates that information, and disseminates the consolidated OPRA data. As the processor, SIAC works directly with OPRA members and data vendors to provide connectivity to SIAC. Connectivity to SIAC is currently provided by an affiliate of SIAC, the ICE Global Network (‘‘IGN’’), and IGN both sets and charges the port fees associated with that connectivity. OPRA, in contrast, does not provide access ports, it does not charge any port fees, it does not collect any fees on behalf of OPRA members in connection with access to SIAC, and it does not receive any portion of port fees charged by other entities. As a result, OPRA does not believe that the caps that OPRA negotiated with SIAC concerning the amount of port fees that can be charged either (1) establishes or changes a fee or charge collected on behalf of the members of the OPRA Plan in connection with access to, or use of, any OPRA facilities or (2) represents a fee or charge imposed by OPRA as contemplated by Rule 608(a)(5)(ii) of Regulation NMS.6 Nonetheless, OPRA is submitting this proposed plan amendment because OPRA wishes to provide the public with notice of the contractual fee caps that it negotiated with SIAC and because Commission Staff requested that it do so. In 2014, OPRA was engaged in a competitive bidding process involving firms that were seeking to become OPRA’s data processor for a five-year 5 17 6 17 PO 00000 CFR 242.801(a). CFR 242.608(a)(5)(ii). Frm 00107 Fmt 4703 Sfmt 4703 50939 term to begin in 2015. As part of that process, OPRA was considering many factors raised by the materials submitted by several entities in response to OPRA’s request for proposals. Although OPRA does not own, or have any control over, the myriad locations where a data recipient might choose to receive OPRA data and OPRA has no role in setting the port connection fees that might be charged by the entities that control access at those locations, OPRA requested that the two finalist bidders each outline any commitments that they could make to cap the 10G and 40G network connection fees that might be charged to data recipients and to the OPRA members during the term of the new processor agreement. In response, SIAC, the bidder that was eventually selected to continue as the OPRA processor, stated its expectation that the 10G port fee would not rise above the then current rate of $16,000 per month (including the cross-connect) and that the 40G port fee would not rise above the then current rate of $20,500 per month (including the cross-connect). As OPRA negotiated the terms of a new processor agreement with SIAC, OPRA’s Management Committee requested that SIAC’s expectation that port fees would not increase above the existing levels be included in the agreement, and SIAC agreed. SIAC also agreed to the inclusion of a provision providing that, whenever higher capacity ports might become available during the term of the agreement, OPRA would have the right to approve a cap on the port fees that could be charged for those higher capacity ports. Effective as of January 1, 2015, OPRA and SIAC entered into a new Processor Agreement for a term ending on December 31, 2020 (the ‘‘2015 Processor Agreement’’). Consistent with the parties’ negotiations, the 2015 Processor Agreement contained the following provision: During the Term, SIAC will provide, directly or through a third party, access to OPRA Data to any person authorized by OPRA to receive direct access to OPRA Data for total fees not to exceed $16,000 per month per 10G port and $20,500 per month per 40G port, in each case, inclusive of cross-connect (whether or not such fees also cover direct access to data in addition to the OPRA Data). If and when during the Term, direct access to the OPRA Data becomes available via higher capacity ports, SIAC will provide, directly or through a third party, access to OPRA Data to any person authorized by OPRA to receive direct access to OPRA Data for total fees not to exceed an amount approved by OPRA (such approval not to be unreasonably withheld) and not inconsistent with the 10G and 40G port rates. E:\FR\FM\02AUN1.SGM 02AUN1 50940 Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Notices In sum, although OPRA does not set or charge port fees, OPRA used the negotiation process as an opportunity to ensure that SIAC’s ability to increase the amount of port fees would be capped during the term of the 2015 Processor Agreement for all OPRA data recipients, including OPRA members, who were authorized to receive direct access to OPRA data. In 2019, as the end of the term of the 2015 Processor Agreement approached, OPRA engaged in another competitive process of soliciting and considering bids from interested entities to act as OPRA’s data processor. Among the many factors assessed by OPRA, OPRA considered the port fees that bidders proposed to charge, and SIAC agreed to maintain the existing terms of the 2015 Processor Agreement regarding the port fee cap provisions applicable to OPRA direct data recipients, including OPRA members. Effective as of January 1, 2021, OPRA and SIAC entered into the 2021 Processor Agreement, which runs for a term ending on January 1, 2026. In the 2021 Processor Agreement, the parties agreed as follows: ddrumheller on DSK120RN23PROD with NOTICES1 Port Fees During the Term of the Agreement, SIAC will provide, directly or through a third party, access to OPRA Data to any person authorized by OPRA to receive direct access to OPRA Data for total fees not to exceed $16,000 per month per 10G port and $20,500 per month per 40G port, in each case, inclusive of cross-connect (whether or not such fees also cover direct access to data in addition to the OPRA Data). If and when during the Term, direct access to OPRA Data becomes available via higher capacity ports, SIAC will provide, directly or through a third party, access to OPRA Data to any person authorized by OPRA to receive direct access to OPRA Data for total fees not to exceed an amount approved by OPRA (such approval not to be unreasonably withheld) and not inconsistent with the 10G and 40G port rates. There will be no One-Time Fee charged for existing OPRA Members and data Customers as of the Effective Date. Ongoing charges for connecting to the IGN will continue to apply at their then-current rates. In the provision quoted above, OPRA and SIAC agreed that SIAC, and any third-parties that SIAC utilized to provide direct access to OPRA data, would continue to abide by the port fee caps that were originally established in the 2015 Processor Agreement through December 31, 2026. In September 2021, SIAC, in accordance with the terms of the 2021 Processor Agreement, notified OPRA VerDate Sep<11>2014 19:49 Aug 01, 2023 Jkt 259001 that OPRA data would become available over 100G ports. SIAC also requested that OPRA approve a $30,000 per month port fee cap, inclusive of cross connect, for such 100G ports. In 2021, after OPRA’s Technical Committee considered SIAC’s request and approved it, OPRA’s Management Committee also approved a $30,000 per month port fee cap with respect to 100G ports. Following that approval, Commission Staff, which attends the meetings of OPRA’s Management Committee, informed OPRA that it should submit a filing to the Commission with respect to the port fee caps. Although, as noted above, OPRA does not believe that the contractual port fee caps represent a fee charged by OPRA that falls within the scope of Rule 608(a)(5)(ii), OPRA is making this filing because it would like to provide notice to the public of the existence of the port fee caps that it has negotiated with SIAC. In connection with this filing, OPRA requested that SIAC confirm that it has complied with its obligations under the contractual port fee cap provisions contained in both the 2015 Processor Agreement and in the 2021 Processor Agreement and SIAC confirmed that it has complied with those provisions. The text of the amendment to the OPRA Plan is available at OPRA, the Commission’s Public Reference Room, the OPRA website at https:// opradata.com, and on the Commission’s website at www.sec.gov. (b) Manner of Implementation of Amendment OPRA proposes to add the proposed amendment to the OPRA Fee Schedule following Commission approval of the amendment pursuant to paragraph (b)(1) and (b)(2) of Rule 608 of Regulation NMS under the Act. OPRA states that the monthly caps on 10G and 40G port fees have been in effect since 2015 and the contractual cap on 100G port fees has been in effect since 2021. (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 Understandings or Agreements Among Plan Members Not applicable. PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 (f) Approval of Proposed Amendment OPRA represents that the proposed amendments to the OPRA Fee Schedule were approved in accordance with the provisions of the OPRA Plan. II. Solicitation of Comments The Commission seeks comment on the Amendment. Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the Amendment is consistent with the Act and the rules thereunder. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include file number SR– OPRA–2023–01 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–2023–01. 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 website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available E:\FR\FM\02AUN1.SGM 02AUN1 Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Notices publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR–OPRA–2023–01 and should be submitted on or before August 23, 2023. 50941 Attachment A—Proposed Changes to Options Price Reporting Authority Fee Schedule ATTACHMENT A For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Sherry R. Haywood, Assistant Secretary. PROPOSED CHANGES TO THE OPTIONS PRICE REPORTING AUTHORITY FEE SCHEDULE [Additions are italicized; Deletions are [bracketed].] Description Basic Service 1 Professional Subscriber Device-Based Fees (Monthly fee applicable to persons that enter into Professional Subscriber Agreements directly with OPRA): These fees are subject to written policies, which are available at www.opradata.com.2 3 4 $30.50 per display device commencing January 1, 2017 $31.50 per display device commencing January 1, 2018 Up to 75,000: $1.25 per nonprofessional subscriber (‘‘nonpro’’) 75,001–150,000: $1.15 per nonpro 150,001–250,000: $1.00 per nonpro 250,001–500,000: $0.75 per nonpro 500,001 +: $0.60 per nonpro $0.0075 per ‘‘quote packet’’ or $0.03 per ‘‘options chain’’, subject to a stated maximum amount per month 7 ddrumheller on DSK120RN23PROD with NOTICES1 Nonprofessional Subscriber Fees: Monthly fees payable by every vendor that furnishes OPRA Data to nonprofessional subscribers (other than nonprofessional subscribers in respect of whom a vendor elects to pay usage-based vendor fees). Usage-based Vendor Fee (Applicable in respect of professional subscribers who enter into Subscriber Agreements with Vendors in place of Professional Subscriber Agreements with OPRA, and in respect of nonprofessional subscribers to Basic Service in place of flat monthly Nonprofessional Subscriber Fee): Monthly fee payable in arrears by a vendor with respect to the use of OPRA Data by persons that enter into Subscriber Agreements with vendors. Usage-based vendor fees apply to each ‘‘quote packet’’ or, if elected in writing by the vendor with respect to the Basic Service, to each ‘‘options chain.’’ 5 All inquiries are counted for purposes of calculating usage-based fees, except that requests for ‘‘delayed’’ and ‘‘historical’’ OPRA Data are not counted.6 Redistribution Fee: Monthly fee payable by every vendor that redistributes OPRA Data to any person, whether on a current or delayed basis, except that this fee does not apply to a Vendor whose redistribution of OPRA Data is limited solely to ‘‘historical’’ OPRA Data. Subscriber Indirect Access Fee: A monthly fee payable by every professional subscriber that receives indirect access to OPRA Data via a data feed transmission from an OPRA vendor. This fee shall not apply to a subscriber (i) that receives a data feed transmission on a single, stand-alone computer for the sole purpose of providing a single-screen display of OPRA Data for the subscriber’s internal use, (ii) whose access and entitlement to OPRA Data received via a data feed transmission is controlled by an authorized control service provider or by the vendor furnishing the data feed transmission, or (iii) that receives a data feed transmission solely for any Non-Display Use. Direct Access Fee: Monthly fee payable by every vendor and professional subscriber that has been authorized by OPRA to receive OPRA Data directly from OPRA’s processor. This charge includes one primary and one back-up circuit connection at the processor. Additional circuit connections are available at a monthly charge of $100 per connection. Monthly Non-Display Use Fees: 9 Category 1 Non-Display Use: .................................................................................................. Category 2 Non-Display Use: .................................................................................................. Category 3 Non-Display Use: .................................................................................................. Voice-Synthesized Market Data Service Fee: Monthly fee payable in arrears by every vendor or professional subscriber that offers a voice-synthesized market data service. (To offer such a service, a professional subscriber must enter into a Voice-Synthesized Market Data Service Rider to its Professional Subscriber Agreement.) The fee is based on the number of active simultaneously accessible ports of the voice- synthesized computer facility of the vendor or professional subscriber through which the service is furnished. Alternatively, a vendor (but not a professional subscriber) may elect in writing to pay a usage-based fee for OPRA Data accessed over vendor’s voice-synthesized market data service as an alternative to the portbased fee. All inquiries are counted for purposes of calculating usage-based fees, except that requests for ‘‘delayed’’ and ‘‘historical’’ OPRA Data are not counted. Control Service Fee: A monthly fee payable by every authorized control service provider that offers a market information electronic data control service to OPRA subscribers and in connection therewith has entered into a Data Control Service Agreement with OPRA. Television Display Fee: A monthly fee payable by every Vendor that has entered into a Television Dissemination Rider with OPRA. 7 17 $1,500; $650 (Query service only) 8 $600 $1,000 $2000 per Enterprise 10 $2000 per Enterprise 10 $2000 per Platform 11 Port-based fee, same as device-based Professional Subscriber Fee treating each port as one device; or usage-based fee at a rate of $0.005 per ‘‘quote packet’’ or $0.02 per ‘‘options chain’’. $2,800 $0.50 per 1,000 households reached 12 CFR 200.30–3(a)(85). VerDate Sep<11>2014 19:49 Aug 01, 2023 Jkt 259001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\02AUN1.SGM 02AUN1 50942 Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Notices PROPOSED CHANGES TO THE OPTIONS PRICE REPORTING AUTHORITY FEE SCHEDULE—Continued [Additions are italicized; Deletions are [bracketed].] Description Basic Service 1 Hosted Solution Fee: Monthly fee payable by each Vendor with respect to Hosted Solutions that it administers on behalf of third parties. (The term ‘‘Hosted Solution’’ is defined in OPRA’s document entitled ‘‘Policy with respect to Hosted Solutions.’’) The Current Data ‘‘Enterprise’’ alternative entitles the Vendor to provide to third parties an unlimited number of Hosted Solutions disseminating current and/or delayed OPRA Data; the Delayed Data ‘‘Enterprise’’ alternative entitles the Vendor to provide to third parties an unlimited number of Hosted Solutions disseminating delayed OPRA Data. • Current Data: $100 per Hosted Solution or $10,000 Enterprise • Delayed Data: $50 per Hosted Solution or $5000 Enterprise ddrumheller on DSK120RN23PROD with NOTICES1 Third Party Fee Caps The fees in the table above are charged by OPRA itself for OPRA Data. 1 OPRA’s Basic Service includes all last sale and quotation information pertaining to equity options and index options, including foreign currency index options. 2 Copies of these Policies will be mailed to any Subscriber upon request. Among other things, these Policies describe the circumstances in which a Professional Subscriber may count ‘‘User IDs’’ that are capable of receiving OPRA information as a surrogate for counting ‘‘devices,’’ that display OPRA information, and pay OPRA’s Professional Subscriber Fees based on the number of its User IDs rather than on the number of its devices. 3 OPRA offers new Professional Subscribers the opportunity to receive OPRA’s Basic Service on a ‘‘free trial’’ basis—that is, without payment of Professional Subscriber Device-Based Fees—for the first 30 days. In order to qualify for the 30-day free trial, a new Subscriber must sign a Professional Subscriber Agreement and indicate on the Agreement that it wishes to subscribe for a 30-day free trial period. Unless the Subscriber notifies OPRA in writing before the end of the 30-day trial period that it wishes to cancel its subscription to OPRA’s Basic Service, the Subscriber will be obligated to pay access fees to OPRA at the devicebased rate (or the alternative Enterprise Rate) commencing on the 31st day following the day its subscription to the Basic Service was initiated. 4 As an alternative to the Device-Based Professional Subscriber Fee, OPRA’s Enterprise Rate Professional Subscriber Fee is available to those Subscribers that (i) are members or associate members in good standing of one or more of the exchanges that are parties to the OPRA Plan, and (ii) elect to pay Subscriber Fees at the Enterprise Rate by signing the Enterprise Rate Amendment to the Subscriber Agreement. The Enterprise Rate Subscriber Fee in effect commencing January 1, 2017, is a monthly fee of $30.50 times the number of a Subscriber’s registered representatives based in the United States, its territories and possessions as reported by FINRA, subject to a minimum monthly fee of $6,100 per subscriber, and commencing January 1, 2018, the monthly fee becomes $31.50 per registered representative as so reported subject to a minimum monthly fee of $6,300; in each case subject to adjustment in accordance with the Enterprise Rate Amendment to the Subscriber Agreement. (In reporting the number of its registered representatives, Subscriber need not include persons previously registered as representatives who are at the time of the report legally prohibited from acting as registered representatives (because, for example, their registrations have lapsed, been suspended, or terminated) and who are not so acting.) Payment of the Enterprise Rate Professional Subscriber Fee entitles Subscriber to access OPRA’s Basic Service at any of its locations in the United States, its territories and possessions, except that Subscribers who pay the Enterprise Rate Professional Subscriber Fee on the basis of more than 7,000 registered VerDate Sep<11>2014 19:49 Aug 01, 2023 Jkt 259001 representatives (i.e., a monthly fee in excess of $213,500 in 2017 and $220,500 in 2018) are entitled to access OPRA’s Basic Service at any of their locations worldwide. In addition, payment of the Enterprise Rate Professional Subscriber Fee by a Subscriber allows OPRA’s Basic Service to be made available to independent investment advisers who are under contract with the Subscriber to provide investment advisory services to the Subscriber’s customers. All such investment advisers will be deemed to be registered representatives of the Subscriber for purposes of calculating the Subscriber’s Enterprise Rate Professional Subscriber Fee. 5 A ‘‘quote packet’’ consists of any one or more of the following values: last sale, bid/ask, and related market data for a single series of options or a related index; an ‘‘options chain’’ consists of last sale, bid/ask, and related market data for up to all series of put and call options on the same underlying security or index. 6 OPRA Data becomes ‘‘delayed’’ after at least 15 minutes have passed since the information was first transmitted by OPRA, OPRA’s processor or an OPRA Participant to vendors. OPRA Data derived from a given trading day of an options market becomes ‘‘historical’’ upon the opening of trading on the next succeeding trading day of that market. 7 Usage-based Vendor Fees for Basic Service may not exceed the following maximum monthly amounts: For a professional subscriber, the monthly fee is capped at the highest per-device fee applicable to a professional subscriber times the number of the professional subscriber’s authorized user IDs; for a nonprofessional subscriber, the monthly fee is capped at $1.25. 8 A Vendor’s Service qualifies for the ‘‘Query service only’’ rate if the Vendor’s Service provides access to OPRA Data only on a ‘‘query’’ basis without any auto-refreshing capability and does not redistribute OPRA Data via dedicated lines or to the systems of one or more other Vendors (sometimes referred to as ‘‘downstream Vendors’’) or to one or more Hosted Solutions. 9 Non-Display Use refers to the accessing, processing or consuming by an OPRA data recipient (either an OPRA vendor or an OPRA professional subscriber that has entered into a Professional Subscriber Agreement directly with OPRA) of OPRA market data, whether delivered directly from OPRA’s processor and/or indirectly from an OPRA vendor, for a purpose other than in support of the data recipient’s display or further internal or external redistribution of the OPRA data, and whether or not the use of the OPRA data is made on a device that is also displaying the OPRA data. Non-Display Use includes, without limitation, trading (such as in a ‘‘black box’’ or a trading engine that performs automated trading, algorithmic trading or program trading, or generates arbitrage or program trading orders); automated order or quote generation and/or order pegging; price referencing for algorithmic trading; operations control programs; investment analysis; order verification; surveillance programs; risk management; compliance; and portfolio valuation. OPRA recognizes three categories of Non-Display Use. Category 1 applies when a data recipient’s PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 Non-Display Use is on its own behalf. Category 2 applies when a data recipient’s Non-Display Use is on behalf of its clients. Category 3 applies when a data recipient’s Non-Display Use is for the purpose of internally matching buy and sell orders within the data recipient. Matching buy and sell orders includes matching customer orders on the data recipient’s own behalf and/or on behalf of its clients. Category 3 includes, but is not limited to, use in trading platform(s), such as exchanges, alternative trading systems (‘‘ATSs’’), broker crossing networks, broker crossing systems not filed as ATSs, dark pools, multilateral trading facilities, and systematic internalization systems. The Category 1 Non-Display Fee shall not apply in the case of an OPRA data recipient during any complete calendar month during which the data recipient (i) has a single UserID (a single natural person) that uses OPRA data for Non-Display Use for the benefit of that UserID and (ii) is not a broker-dealer and does not place more than 390 orders in listed options per day on average during the calendar month (counting orders for this purpose in accordance with the rules of the OPRA Participant exchanges to which it submits orders during the month) for its own beneficial account(s). The Non-Display Use charges apply separately for each of the three categories of Non-Display Use. One, two or three categories of Non-Display Use may apply to one organization. Professional Subscriber servers and other devices that are used solely for Non-Display Use are not subject to Professional Subscriber Device-Based Fees, but if a Professional Subscriber uses a server or other device for a Non-Display Use and also to display OPRA data the Professional Subscriber will be subject to the applicable Non-Display Use fees and to the Professional Subscriber Device-Based Fee. An organization that uses data for Category 3 Non-Display Use must count each ‘‘Platform’’ (this term is defined in footnote 12) that uses data on a non-display basis. For example, an organization that uses OPRA Data for the purposes of operating an ATS and also for operating a broker crossing system not registered as an ATS would be required to pay two Category 3 Non-Display Use fees. An OPRA data recipient must make a declaration to OPRA of its Non-Display Use of OPRA data upon commencing the Non-Display Use and thereafter upon any change in the recipient’s Non-Display Use. In addition, each OPRA data recipient will be required to make an annual declaration to OPRA of its Non-Display Use of OPRA data. OPRA will not require monthly reporting with respect to NonDisplay Use of OPRA data. 10 An ‘‘Enterprise’’ is an OPRA data recipient together with the wholly-owned subsidiaries of the data recipient. 11 A ‘‘Platform’’ is a platform for internally matching buy and sell orders. Matching buy and sell orders includes matching customer orders on a data recipient’s own behalf and/or on behalf of its clients. The term ‘‘Platform’’ includes, but is not restricted to, exchanges, alternative trading systems (ATSs), broker crossing networks, broker crossing systems not filed as ATSs, dark pools, multilateral trading facilities, and systematic internalization systems. E:\FR\FM\02AUN1.SGM 02AUN1 Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Notices In addition, in order to directly access OPRA Data as made available by OPRA’s processor, the Securities Industry Automation Corporation (‘‘SIAC’’), direct data recipients must procure connectivity to the OPRA Data at a location where SIAC, or a third party utilized by SIAC, makes it available. OPRA has contractually capped the connectivity or ‘‘port’’ fees that SIAC, or any third party utilized by SIAC, may charge to provide direct connectivity to OPRA Data. The port fee caps are: • $16,000 per month per 10 Gb port • $20,500 per month per 40 Gb port • $30,000 per month per 100 Gb port Each of these fee caps is inclusive of cross-connect fees and apply regardless of whether or not such fees also cover direct access to other data in addition to OPRA Data. These connectivity fees are not charged, collected, or retained by OPRA. OPRA is including these port fee caps in its Fee Schedule so that market participants can better ascertain the recurring costs associated with obtaining direct access to OPRA Data. [FR Doc. 2023–16392 Filed 8–1–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–98005; File No. SR–CBOE– 2023–019] Self-Regulatory Organizations; Cboe Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove Proposed Rule Change To Make Permanent the Operation of its Pilot Program That Allows the Exchange to List P.M.Settled Third Friday-of-the-Month MiniSPX Index Options and Mini-Russell 2000 Index Options Series July 27, 2023. ddrumheller on DSK120RN23PROD with NOTICES1 I. Introduction On April 19, 2023, Cboe Exchange, Inc. (‘‘Exchange’’ or ‘‘Cboe Options’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant 12 The term ‘‘households reached’’ is defined in the Television Dissemination Rider. Prorating of the ‘‘per 1,000 households reached’’ fee (but not the monthly maximum) is permitted if Vendor displays OPRA Data for less than its entire business day, based upon the number of minutes current OPRA Data is displayed by Vendor divided by 390 (or such other number as OPRA. reasonably designates from time to time to represent the number of minutes that the U.S. markets are open for trading). Vendor may simulcast over multiple television channels and not be charged more than once for households reached that have access to multiple simulcast channels. VerDate Sep<11>2014 19:49 Aug 01, 2023 Jkt 259001 to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to make permanent the operation of its pilot program (‘‘Program’’) that permits the Exchange to list p.m.-settled third Friday-of-themonth Mini-SPX Index (‘‘XSP’’) options and Mini-Russell 2000 Index (‘‘MRUT’’). The proposed rule change was published for comment in the Federal Register on April 28, 2023.3 On June 9, 2023, pursuant to Section 19(b)(2) of the Act,4 the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.5 The Commission did not receive any comment letters on the proposed rule change. The Commission is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act 6 to determine whether to approve or disapprove the proposed rule change. II. Description of the Proposed Rule Change The Exchange proposes to make permanent a pilot program that permits the Exchange to list and trade cashsettled XSP and MRUT options with third Friday-of-the-month expiration dates (‘‘Expiration Friday’’) whose exercise settlement value is derived from closing prices on the last trading day prior to expiration (‘‘p.m.-settled XSP’’ and ‘‘p.m.-settled MRUT,’’ respectively, and collectively, the ‘‘Pilot Products’’). In July 2013, the Commission approved the Program to list and trade p.m.-settled XSP options on a pilot basis.7 In February 2021, the Commission approved a rule change that amended the Program to allow the exchange to list and trade p.m.-settled MRUT options.8 In approving the Program, the Commission noted its concern about the potential impact on the market at expiration for the underlying component stocks for a p.m.1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 97366 (April 24, 2023), 88 FR 26359 (‘‘Notice’’). 4 15 U.S.C. 78s(b)(2). 5 See Securities Exchange Act Release No. 97678, 88 FR 39285 (June 15, 2023). The Commission designated July 27, 2023, as the date by which the Commission shall approve or disapprove, or institute proceedings to determine whether to approve or disapprove, the proposed rule change. 6 15 U.S.C. 78s(b)(2)(B). 7 See Securities Exchange Act Release No. 70087 (July 31, 2013), 78 FR 47809 (August 6, 2013) (SR– CBOE–2013–055) (‘‘XSP Approval Order’’). 8 See Securities Exchange Act Release No. 91067 (February 5, 2021) 86 FR 9108 (February 11, 2021) (SR–CBOE–2020–116) (‘‘MRUT Approval Order’’). 2 17 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 50943 settled, cash-settled index options.9 However, the Commission also recognized the potential impact was unclear.10 The Commission approved the Program on a pilot basis to allow the Exchange and the Commission to monitor for and assess any potential for adverse market effects.11 In order to facilitate this assessment, the Exchange committed to provide the Commission with data and analysis in connection with the Program.12 The Exchange has filed to extend the operation of the Program on multiple occasions 13 and it is currently set to expire on the earlier of November 6, 2023, or the date on which the Program is approved on a permanent basis.14 Since the Program’s inception in 2013 for XSP and 2021 for MRUT, the Exchange has submitted reports to the Commission regarding the Program that detail the Exchange’s experience with the Program, pursuant to the XSP and MRUT Approval Orders.15 Specifically, the Exchange states it has submitted annual pilot reports to the Commission that contain an analysis of volume, open interest, and trading patterns.16 The analysis examines trading in the Pilot Products, as well as trading in the securities that comprise the underlying indexes. Additionally, for series that exceed certain minimum open interest parameters, the annual reports provide analysis of index price volatility and share trading activity. The Exchange states it has also submitted periodic interim reports that contain some, but not all, of the information contained in the annual reports (together with the annual reports, the ‘‘pilot reports’’).17 The Exchange states that, during the course of the Program, it has provided 9 See XSP Approval Order, 78 FR at 47811; and MRUT Approval Order, 86 FR at 9109. See also Securities Exchange Act Release Nos. 64599 (June 3, 2011), 76 FR 33798, 33801–02 (June 9, 2011) (order instituting proceedings to determine whether to approve or disapprove a proposed rule change to allow the listing and trading of SPXPM options); 65256 (September 2, 2011), 76 FR 55969, 55970–76 (September 9, 2011) (order approving proposed rule change to establish a pilot program to list and trade SPXPM options); and 68888 (February 8, 2013), 78 FR 10668, 10669 (February 14, 2013) (order approving the listing and trading of SPXPM on CBOE). 10 See XSP Approval Order, 78 FR at 47811; and MRUT Approval Order, 86 FR at 9109. 11 See XSP Approval Order, 78 FR at 47811; and MRUT Approval Order, 86 FR at 9109. 12 Id. 13 See, e.g., Securities Exchange Act Release Nos. 71424 (January 28, 2014), 79 FR 6249 (February 3, 2014) (SR–CBOE–2014–004); and 96222 (November 3, 2022), 87 FR 67736 (November 9, 2022) (SR– CBOE–2022–054). 14 See Securities Exchange Act Release No. 97446 (May 5, 2023), 88 FR 30365 (May 11, 2023). 15 See supra note 12. 16 See Notice, 88 FR at 26361. 17 See id. E:\FR\FM\02AUN1.SGM 02AUN1

Agencies

[Federal Register Volume 88, Number 147 (Wednesday, August 2, 2023)]
[Notices]
[Pages 50939-50943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16392]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98012; File No. SR-OPRA-2023-01]


Options Price Reporting Authority; Notice of Filing and Immediate 
Effectiveness of Proposed Amendment To Modify the OPRA Fee Schedule 
Regarding Caps on Certain Port Fees

July 27, 2023.
    Pursuant to Section 11A of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given that 
on July 17, 2023, the Options Price Reporting Authority (``OPRA'') 
filed with the Securities and Exchange Commission (``Commission'') a 
proposed amendment to the Plan for Reporting of Consolidated Options 
Last Sale Reports and Quotation Information (``OPRA Plan'').\3\ The 
proposed OPRA Plan amendment (``Amendment'') would amend the OPRA Fee 
Schedule. The Commission is publishing this notice to provide 
interested persons an opportunity to submit written comments on the 
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 participants are available at https://www.opraplan.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 Amendment has been filed by the Participants pursuant to Rule 
608(b)(2) under Regulation NMS.\4\ The Commission is publishing this 
notice to solicit comments from interested persons on the proposed 
Amendment. Set forth in Section I, which was prepared and filed with 
the Commission by the Participants, is the statement of the purpose and 
summary of the Amendment, along with information pursuant to Rule 
608(a) under the Act.\5\ A copy of the OPRA Fee Schedule, marked to 
show the proposed Amendment, is Attachment A to this notice.
---------------------------------------------------------------------------

    \4\ 17 CFR 242.608(b)(2).
    \5\ 17 CFR 242.801(a).
---------------------------------------------------------------------------

I. Rule 608(a)

(a) Statement of Purpose

    The purpose of the amendment is to amend the OPRA Fee Schedule to 
provide public notice of the fact that OPRA negotiated terms in the 
2021 Processor Services Agreement (the ``2021 Processor Agreement'') 
between OPRA and the Securities Industry Automation Corporation 
(``SIAC'') which impose caps on certain port fees that can be charged 
per month when SIAC, either directly or through a third party, provides 
direct access to OPRA data to any person authorized by OPRA to receive 
direct access to OPRA data.
    Under the 2021 Processor Agreement, SIAC is OPRA's ``processor,'' 
meaning that SIAC gathers the last sale and quote information from each 
of the OPRA members, consolidates that information, and disseminates 
the consolidated OPRA data. As the processor, SIAC works directly with 
OPRA members and data vendors to provide connectivity to SIAC. 
Connectivity to SIAC is currently provided by an affiliate of SIAC, the 
ICE Global Network (``IGN''), and IGN both sets and charges the port 
fees associated with that connectivity. OPRA, in contrast, does not 
provide access ports, it does not charge any port fees, it does not 
collect any fees on behalf of OPRA members in connection with access to 
SIAC, and it does not receive any portion of port fees charged by other 
entities. As a result, OPRA does not believe that the caps that OPRA 
negotiated with SIAC concerning the amount of port fees that can be 
charged either (1) establishes or changes a fee or charge collected on 
behalf of the members of the OPRA Plan in connection with access to, or 
use of, any OPRA facilities or (2) represents a fee or charge imposed 
by OPRA as contemplated by Rule 608(a)(5)(ii) of Regulation NMS.\6\ 
Nonetheless, OPRA is submitting this proposed plan amendment because 
OPRA wishes to provide the public with notice of the contractual fee 
caps that it negotiated with SIAC and because Commission Staff 
requested that it do so.
---------------------------------------------------------------------------

    \6\ 17 CFR 242.608(a)(5)(ii).
---------------------------------------------------------------------------

    In 2014, OPRA was engaged in a competitive bidding process 
involving firms that were seeking to become OPRA's data processor for a 
five-year term to begin in 2015. As part of that process, OPRA was 
considering many factors raised by the materials submitted by several 
entities in response to OPRA's request for proposals. Although OPRA 
does not own, or have any control over, the myriad locations where a 
data recipient might choose to receive OPRA data and OPRA has no role 
in setting the port connection fees that might be charged by the 
entities that control access at those locations, OPRA requested that 
the two finalist bidders each outline any commitments that they could 
make to cap the 10G and 40G network connection fees that might be 
charged to data recipients and to the OPRA members during the term of 
the new processor agreement. In response, SIAC, the bidder that was 
eventually selected to continue as the OPRA processor, stated its 
expectation that the 10G port fee would not rise above the then current 
rate of $16,000 per month (including the cross-connect) and that the 
40G port fee would not rise above the then current rate of $20,500 per 
month (including the cross-connect).
    As OPRA negotiated the terms of a new processor agreement with 
SIAC, OPRA's Management Committee requested that SIAC's expectation 
that port fees would not increase above the existing levels be included 
in the agreement, and SIAC agreed. SIAC also agreed to the inclusion of 
a provision providing that, whenever higher capacity ports might become 
available during the term of the agreement, OPRA would have the right 
to approve a cap on the port fees that could be charged for those 
higher capacity ports.
    Effective as of January 1, 2015, OPRA and SIAC entered into a new 
Processor Agreement for a term ending on December 31, 2020 (the ``2015 
Processor Agreement''). Consistent with the parties' negotiations, the 
2015 Processor Agreement contained the following provision:

    During the Term, SIAC will provide, directly or through a third 
party, access to OPRA Data to any person authorized by OPRA to 
receive direct access to OPRA Data for total fees not to exceed 
$16,000 per month per 10G port and $20,500 per month per 40G port, 
in each case, inclusive of cross-connect (whether or not such fees 
also cover direct access to data in addition to the OPRA Data). If 
and when during the Term, direct access to the OPRA Data becomes 
available via higher capacity ports, SIAC will provide, directly or 
through a third party, access to OPRA Data to any person authorized 
by OPRA to receive direct access to OPRA Data for total fees not to 
exceed an amount approved by OPRA (such approval not to be 
unreasonably withheld) and not inconsistent with the 10G and 40G 
port rates.

[[Page 50940]]

    In sum, although OPRA does not set or charge port fees, OPRA used 
the negotiation process as an opportunity to ensure that SIAC's ability 
to increase the amount of port fees would be capped during the term of 
the 2015 Processor Agreement for all OPRA data recipients, including 
OPRA members, who were authorized to receive direct access to OPRA 
data.
    In 2019, as the end of the term of the 2015 Processor Agreement 
approached, OPRA engaged in another competitive process of soliciting 
and considering bids from interested entities to act as OPRA's data 
processor. Among the many factors assessed by OPRA, OPRA considered the 
port fees that bidders proposed to charge, and SIAC agreed to maintain 
the existing terms of the 2015 Processor Agreement regarding the port 
fee cap provisions applicable to OPRA direct data recipients, including 
OPRA members.
    Effective as of January 1, 2021, OPRA and SIAC entered into the 
2021 Processor Agreement, which runs for a term ending on January 1, 
2026. In the 2021 Processor Agreement, the parties agreed as follows:

Port Fees

    During the Term of the Agreement, SIAC will provide, directly or 
through a third party, access to OPRA Data to any person authorized 
by OPRA to receive direct access to OPRA Data for total fees not to 
exceed $16,000 per month per 10G port and $20,500 per month per 40G 
port, in each case, inclusive of cross-connect (whether or not such 
fees also cover direct access to data in addition to the OPRA Data). 
If and when during the Term, direct access to OPRA Data becomes 
available via higher capacity ports, SIAC will provide, directly or 
through a third party, access to OPRA Data to any person authorized 
by OPRA to receive direct access to OPRA Data for total fees not to 
exceed an amount approved by OPRA (such approval not to be 
unreasonably withheld) and not inconsistent with the 10G and 40G 
port rates.
    There will be no One-Time Fee charged for existing OPRA Members 
and data Customers as of the Effective Date. Ongoing charges for 
connecting to the IGN will continue to apply at their then-current 
rates.

    In the provision quoted above, OPRA and SIAC agreed that SIAC, and 
any third-parties that SIAC utilized to provide direct access to OPRA 
data, would continue to abide by the port fee caps that were originally 
established in the 2015 Processor Agreement through December 31, 2026.
    In September 2021, SIAC, in accordance with the terms of the 2021 
Processor Agreement, notified OPRA that OPRA data would become 
available over 100G ports. SIAC also requested that OPRA approve a 
$30,000 per month port fee cap, inclusive of cross connect, for such 
100G ports.
    In 2021, after OPRA's Technical Committee considered SIAC's request 
and approved it, OPRA's Management Committee also approved a $30,000 
per month port fee cap with respect to 100G ports. Following that 
approval, Commission Staff, which attends the meetings of OPRA's 
Management Committee, informed OPRA that it should submit a filing to 
the Commission with respect to the port fee caps. Although, as noted 
above, OPRA does not believe that the contractual port fee caps 
represent a fee charged by OPRA that falls within the scope of Rule 
608(a)(5)(ii), OPRA is making this filing because it would like to 
provide notice to the public of the existence of the port fee caps that 
it has negotiated with SIAC. In connection with this filing, OPRA 
requested that SIAC confirm that it has complied with its obligations 
under the contractual port fee cap provisions contained in both the 
2015 Processor Agreement and in the 2021 Processor Agreement and SIAC 
confirmed that it has complied with those provisions.
    The text of the amendment to the OPRA Plan is available at OPRA, 
the Commission's Public Reference Room, the OPRA website at https://opradata.com, and on the Commission's website at www.sec.gov.

(b) Manner of Implementation of Amendment

    OPRA proposes to add the proposed amendment to the OPRA Fee 
Schedule following Commission approval of the amendment pursuant to 
paragraph (b)(1) and (b)(2) of Rule 608 of Regulation NMS under the 
Act. OPRA states that the monthly caps on 10G and 40G port fees have 
been in effect since 2015 and the contractual cap on 100G port fees has 
been in effect since 2021.

(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 Understandings or Agreements Among Plan Members

    Not applicable.

(f) Approval of Proposed Amendment

    OPRA represents that the proposed amendments to the OPRA Fee 
Schedule were approved in accordance with the provisions of the OPRA 
Plan.

II. Solicitation of Comments

    The Commission seeks comment on the Amendment. Interested persons 
are invited to submit written data, views and arguments concerning the 
foregoing, including whether the Amendment is consistent with the Act 
and the rules thereunder. Comments may be submitted by any of the 
following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-OPRA-2023-01 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-2023-01. 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 website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change 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 website 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 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available

[[Page 50941]]

publicly. We may redact in part or withhold entirely from publication 
submitted material that is obscene or subject to copyright protection. 
All submissions should refer to file number SR-OPRA-2023-01 and should 
be submitted on or before August 23, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(85).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.

Attachment A--Proposed Changes to Options Price Reporting Authority Fee 
Schedule

ATTACHMENT A

 Proposed Changes to the Options Price Reporting Authority Fee Schedule
         [Additions are italicized; Deletions are [bracketed].]
------------------------------------------------------------------------
                 Description                       Basic Service \1\
------------------------------------------------------------------------
Professional Subscriber Device-Based Fees      $30.50 per display device
 (Monthly fee applicable to persons that        commencing January 1,
 enter into Professional Subscriber             2017
 Agreements directly with OPRA): These fees    $31.50 per display device
 are subject to written policies, which are     commencing January 1,
 available at www.opradata.com.2 3 4            2018
Nonprofessional Subscriber Fees: Monthly fees  Up to 75,000: $1.25 per
 payable by every vendor that furnishes OPRA    nonprofessional
 Data to nonprofessional subscribers (other     subscriber (``nonpro'')
 than nonprofessional subscribers in respect   75,001-150,000: $1.15 per
 of whom a vendor elects to pay usage-based     nonpro
 vendor fees).                                 150,001-250,000: $1.00
                                                per nonpro
                                               250,001-500,000: $0.75
                                                per nonpro
                                               500,001 +: $0.60 per
                                                nonpro
Usage-based Vendor Fee (Applicable in respect  $0.0075 per ``quote
 of professional subscribers who enter into     packet'' or $0.03 per
 Subscriber Agreements with Vendors in place    ``options chain'',
 of Professional Subscriber Agreements with     subject to a stated
 OPRA, and in respect of nonprofessional        maximum amount per month
 subscribers to Basic Service in place of       \7\
 flat monthly Nonprofessional Subscriber
 Fee): Monthly fee payable in arrears by a
 vendor with respect to the use of OPRA Data
 by persons that enter into Subscriber
 Agreements with vendors. Usage-based vendor
 fees apply to each ``quote packet'' or, if
 elected in writing by the vendor with
 respect to the Basic Service, to each
 ``options chain.'' \5\ All inquiries are
 counted for purposes of calculating usage-
 based fees, except that requests for
 ``delayed'' and ``historical'' OPRA Data are
 not counted.\6\
Redistribution Fee: Monthly fee payable by     $1,500;
 every vendor that redistributes OPRA Data to  $650 (Query service only)
 any person, whether on a current or delayed    \8\
 basis, except that this fee does not apply
 to a Vendor whose redistribution of OPRA
 Data is limited solely to ``historical''
 OPRA Data.
Subscriber Indirect Access Fee: A monthly fee  $600
 payable by every professional subscriber
 that receives indirect access to OPRA Data
 via a data feed transmission from an OPRA
 vendor. This fee shall not apply to a
 subscriber (i) that receives a data feed
 transmission on a single, stand-alone
 computer for the sole purpose of providing a
 single-screen display of OPRA Data for the
 subscriber's internal use, (ii) whose access
 and entitlement to OPRA Data received via a
 data feed transmission is controlled by an
 authorized control service provider or by
 the vendor furnishing the data feed
 transmission, or (iii) that receives a data
 feed transmission solely for any Non-Display
 Use.
Direct Access Fee: Monthly fee payable by      $1,000
 every vendor and professional subscriber
 that has been authorized by OPRA to receive
 OPRA Data directly from OPRA's processor.
 This charge includes one primary and one
 back-up circuit connection at the processor.
 Additional circuit connections are available
 at a monthly charge of $100 per connection.
Monthly Non-Display Use Fees: \9\
    Category 1 Non-Display Use:..............  $2000 per Enterprise \10\
    Category 2 Non-Display Use:..............  $2000 per Enterprise \10\
    Category 3 Non-Display Use:..............  $2000 per Platform \11\
Voice-Synthesized Market Data Service Fee:     Port-based fee, same as
 Monthly fee payable in arrears by every        device-based
 vendor or professional subscriber that         Professional Subscriber
 offers a voice-synthesized market data         Fee treating each port
 service. (To offer such a service, a           as one device; or usage-
 professional subscriber must enter into a      based fee at a rate of
 Voice-Synthesized Market Data Service Rider    $0.005 per ``quote
 to its Professional Subscriber Agreement.)     packet'' or $0.02 per
 The fee is based on the number of active       ``options chain''.
 simultaneously accessible ports of the voice-
  synthesized computer facility of the vendor
 or professional subscriber through which the
 service is furnished. Alternatively, a
 vendor (but not a professional subscriber)
 may elect in writing to pay a usage-based
 fee for OPRA Data accessed over vendor's
 voice-synthesized market data service as an
 alternative to the port-based fee. All
 inquiries are counted for purposes of
 calculating usage-based fees, except that
 requests for ``delayed'' and ``historical''
 OPRA Data are not counted.
Control Service Fee: A monthly fee payable by  $2,800
 every authorized control service provider
 that offers a market information electronic
 data control service to OPRA subscribers and
 in connection therewith has entered into a
 Data Control Service Agreement with OPRA.
Television Display Fee: A monthly fee payable  $0.50 per 1,000
 by every Vendor that has entered into a        households reached \12\
 Television Dissemination Rider with OPRA.

[[Page 50942]]

 
Hosted Solution Fee: Monthly fee payable by     Current Data:
 each Vendor with respect to Hosted Solutions   $100 per Hosted Solution
 that it administers on behalf of third         or $10,000 Enterprise
 parties. (The term ``Hosted Solution'' is      Delayed Data:
 defined in OPRA's document entitled ``Policy   $50 per Hosted Solution
 with respect to Hosted Solutions.'') The       or $5000 Enterprise
 Current Data ``Enterprise'' alternative
 entitles the Vendor to provide to third
 parties an unlimited number of Hosted
 Solutions disseminating current and/or
 delayed OPRA Data; the Delayed Data
 ``Enterprise'' alternative entitles the
 Vendor to provide to third parties an
 unlimited number of Hosted Solutions
 disseminating delayed OPRA Data.
------------------------------------------------------------------------

Third Party Fee Caps
---------------------------------------------------------------------------

    \1\ OPRA's Basic Service includes all last sale and quotation 
information pertaining to equity options and index options, 
including foreign currency index options.
    \2\ Copies of these Policies will be mailed to any Subscriber 
upon request. Among other things, these Policies describe the 
circumstances in which a Professional Subscriber may count ``User 
IDs'' that are capable of receiving OPRA information as a surrogate 
for counting ``devices,'' that display OPRA information, and pay 
OPRA's Professional Subscriber Fees based on the number of its User 
IDs rather than on the number of its devices.
    \3\ OPRA offers new Professional Subscribers the opportunity to 
receive OPRA's Basic Service on a ``free trial'' basis--that is, 
without payment of Professional Subscriber Device-Based Fees--for 
the first 30 days. In order to qualify for the 30-day free trial, a 
new Subscriber must sign a Professional Subscriber Agreement and 
indicate on the Agreement that it wishes to subscribe for a 30-day 
free trial period. Unless the Subscriber notifies OPRA in writing 
before the end of the 30-day trial period that it wishes to cancel 
its subscription to OPRA's Basic Service, the Subscriber will be 
obligated to pay access fees to OPRA at the device-based rate (or 
the alternative Enterprise Rate) commencing on the 31st day 
following the day its subscription to the Basic Service was 
initiated.
    \4\ As an alternative to the Device-Based Professional 
Subscriber Fee, OPRA's Enterprise Rate Professional Subscriber Fee 
is available to those Subscribers that (i) are members or associate 
members in good standing of one or more of the exchanges that are 
parties to the OPRA Plan, and (ii) elect to pay Subscriber Fees at 
the Enterprise Rate by signing the Enterprise Rate Amendment to the 
Subscriber Agreement. The Enterprise Rate Subscriber Fee in effect 
commencing January 1, 2017, is a monthly fee of $30.50 times the 
number of a Subscriber's registered representatives based in the 
United States, its territories and possessions as reported by FINRA, 
subject to a minimum monthly fee of $6,100 per subscriber, and 
commencing January 1, 2018, the monthly fee becomes $31.50 per 
registered representative as so reported subject to a minimum 
monthly fee of $6,300; in each case subject to adjustment in 
accordance with the Enterprise Rate Amendment to the Subscriber 
Agreement. (In reporting the number of its registered 
representatives, Subscriber need not include persons previously 
registered as representatives who are at the time of the report 
legally prohibited from acting as registered representatives 
(because, for example, their registrations have lapsed, been 
suspended, or terminated) and who are not so acting.) Payment of the 
Enterprise Rate Professional Subscriber Fee entitles Subscriber to 
access OPRA's Basic Service at any of its locations in the United 
States, its territories and possessions, except that Subscribers who 
pay the Enterprise Rate Professional Subscriber Fee on the basis of 
more than 7,000 registered representatives (i.e., a monthly fee in 
excess of $213,500 in 2017 and $220,500 in 2018) are entitled to 
access OPRA's Basic Service at any of their locations worldwide. In 
addition, payment of the Enterprise Rate Professional Subscriber Fee 
by a Subscriber allows OPRA's Basic Service to be made available to 
independent investment advisers who are under contract with the 
Subscriber to provide investment advisory services to the 
Subscriber's customers. All such investment advisers will be deemed 
to be registered representatives of the Subscriber for purposes of 
calculating the Subscriber's Enterprise Rate Professional Subscriber 
Fee.
    \5\ A ``quote packet'' consists of any one or more of the 
following values: last sale, bid/ask, and related market data for a 
single series of options or a related index; an ``options chain'' 
consists of last sale, bid/ask, and related market data for up to 
all series of put and call options on the same underlying security 
or index.
    \6\ OPRA Data becomes ``delayed'' after at least 15 minutes have 
passed since the information was first transmitted by OPRA, OPRA's 
processor or an OPRA Participant to vendors. OPRA Data derived from 
a given trading day of an options market becomes ``historical'' upon 
the opening of trading on the next succeeding trading day of that 
market.
    \7\ Usage-based Vendor Fees for Basic Service may not exceed the 
following maximum monthly amounts: For a professional subscriber, 
the monthly fee is capped at the highest per-device fee applicable 
to a professional subscriber times the number of the professional 
subscriber's authorized user IDs; for a nonprofessional subscriber, 
the monthly fee is capped at $1.25.
    \8\ A Vendor's Service qualifies for the ``Query service only'' 
rate if the Vendor's Service provides access to OPRA Data only on a 
``query'' basis without any auto-refreshing capability and does not 
redistribute OPRA Data via dedicated lines or to the systems of one 
or more other Vendors (sometimes referred to as ``downstream 
Vendors'') or to one or more Hosted Solutions.
    \9\ Non-Display Use refers to the accessing, processing or 
consuming by an OPRA data recipient (either an OPRA vendor or an 
OPRA professional subscriber that has entered into a Professional 
Subscriber Agreement directly with OPRA) of OPRA market data, 
whether delivered directly from OPRA's processor and/or indirectly 
from an OPRA vendor, for a purpose other than in support of the data 
recipient's display or further internal or external redistribution 
of the OPRA data, and whether or not the use of the OPRA data is 
made on a device that is also displaying the OPRA data. Non-Display 
Use includes, without limitation, trading (such as in a ``black 
box'' or a trading engine that performs automated trading, 
algorithmic trading or program trading, or generates arbitrage or 
program trading orders); automated order or quote generation and/or 
order pegging; price referencing for algorithmic trading; operations 
control programs; investment analysis; order verification; 
surveillance programs; risk management; compliance; and portfolio 
valuation.
    OPRA recognizes three categories of Non-Display Use. Category 1 
applies when a data recipient's Non-Display Use is on its own 
behalf. Category 2 applies when a data recipient's Non-Display Use 
is on behalf of its clients. Category 3 applies when a data 
recipient's Non-Display Use is for the purpose of internally 
matching buy and sell orders within the data recipient. Matching buy 
and sell orders includes matching customer orders on the data 
recipient's own behalf and/or on behalf of its clients. Category 3 
includes, but is not limited to, use in trading platform(s), such as 
exchanges, alternative trading systems (``ATSs''), broker crossing 
networks, broker crossing systems not filed as ATSs, dark pools, 
multilateral trading facilities, and systematic internalization 
systems. The Category 1 Non-Display Fee shall not apply in the case 
of an OPRA data recipient during any complete calendar month during 
which the data recipient (i) has a single UserID (a single natural 
person) that uses OPRA data for Non-Display Use for the benefit of 
that UserID and (ii) is not a broker-dealer and does not place more 
than 390 orders in listed options per day on average during the 
calendar month (counting orders for this purpose in accordance with 
the rules of the OPRA Participant exchanges to which it submits 
orders during the month) for its own beneficial account(s).
    The Non-Display Use charges apply separately for each of the 
three categories of Non-Display Use. One, two or three categories of 
Non-Display Use may apply to one organization. Professional 
Subscriber servers and other devices that are used solely for Non-
Display Use are not subject to Professional Subscriber Device-Based 
Fees, but if a Professional Subscriber uses a server or other device 
for a Non-Display Use and also to display OPRA data the Professional 
Subscriber will be subject to the applicable Non-Display Use fees 
and to the Professional Subscriber Device-Based Fee.
    An organization that uses data for Category 3 Non-Display Use 
must count each ``Platform'' (this term is defined in footnote 12) 
that uses data on a non-display basis. For example, an organization 
that uses OPRA Data for the purposes of operating an ATS and also 
for operating a broker crossing system not registered as an ATS 
would be required to pay two Category 3 Non-Display Use fees.
    An OPRA data recipient must make a declaration to OPRA of its 
Non-Display Use of OPRA data upon commencing the Non-Display Use and 
thereafter upon any change in the recipient's Non-Display Use. In 
addition, each OPRA data recipient will be required to make an 
annual declaration to OPRA of its Non-Display Use of OPRA data. OPRA 
will not require monthly reporting with respect to Non-Display Use 
of OPRA data.
    \10\ An ``Enterprise'' is an OPRA data recipient together with 
the wholly-owned subsidiaries of the data recipient.
    \11\ A ``Platform'' is a platform for internally matching buy 
and sell orders. Matching buy and sell orders includes matching 
customer orders on a data recipient's own behalf and/or on behalf of 
its clients. The term ``Platform'' includes, but is not restricted 
to, exchanges, alternative trading systems (ATSs), broker crossing 
networks, broker crossing systems not filed as ATSs, dark pools, 
multilateral trading facilities, and systematic internalization 
systems.
    \12\ The term ``households reached'' is defined in the 
Television Dissemination Rider. Prorating of the ``per 1,000 
households reached'' fee (but not the monthly maximum) is permitted 
if Vendor displays OPRA Data for less than its entire business day, 
based upon the number of minutes current OPRA Data is displayed by 
Vendor divided by 390 (or such other number as OPRA. reasonably 
designates from time to time to represent the number of minutes that 
the U.S. markets are open for trading). Vendor may simulcast over 
multiple television channels and not be charged more than once for 
households reached that have access to multiple simulcast channels.
---------------------------------------------------------------------------

    The fees in the table above are charged by OPRA itself for OPRA 
Data.

[[Page 50943]]

In addition, in order to directly access OPRA Data as made available by 
OPRA's processor, the Securities Industry Automation Corporation 
(``SIAC''), direct data recipients must procure connectivity to the 
OPRA Data at a location where SIAC, or a third party utilized by SIAC, 
makes it available. OPRA has contractually capped the connectivity or 
``port'' fees that SIAC, or any third party utilized by SIAC, may 
charge to provide direct connectivity to OPRA Data. The port fee caps 
---------------------------------------------------------------------------
are:

 $16,000 per month per 10 Gb port
 $20,500 per month per 40 Gb port
 $30,000 per month per 100 Gb port

    Each of these fee caps is inclusive of cross-connect fees and apply 
regardless of whether or not such fees also cover direct access to 
other data in addition to OPRA Data.
    These connectivity fees are not charged, collected, or retained by 
OPRA. OPRA is including these port fee caps in its Fee Schedule so that 
market participants can better ascertain the recurring costs associated 
with obtaining direct access to OPRA Data.

[FR Doc. 2023-16392 Filed 8-1-23; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.