|The Options Price Reporting Authority, LLC ("OPRA") is a securities information processor that is registered as such in accordance with Section 11A(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). OPRA's members consist of the national securities exchanges that have been approved by the Securities and Exchange Commission (the "Commission") to provide markets for the listing and trading of exchange-traded securities options. These exchanges have been authorized by the Commission pursuant to Section 11A(a)(3)(B) of the Exchange Act to act jointly as parties to the OPRA national market system plan, which is entitled "Limited Liability Company Agreement of Options Price Reporting Authority, LLC." This plan as amended from time to time in accordance with its provisions is referred to in this Overview as the "Plan," and the parties to the Plan as they exist from time to time are referred to in this Overview collectively as the "OPRA Participants." The current OPRA Participants are shown below.
Last sale reports and quotations are the core of the information that OPRA disseminates. OPRA also disseminates certain other types of information with respect to the trading of options on the markets of the OPRA Participants, such as the number of options contracts traded, open interest and end of day summaries. OPRA also disseminates certain kinds of administrative messages.
OPRA classifies recipients of information that it disseminates as "Vendors" and/or as "Subscribers." A "Vendor" is an entity that has the contractual right to retransmit information disseminated by OPRA "externally," i.e., to persons outside its own organization. Each Vendor must enter into a Vendor Agreement directly with OPRA. The Vendor Agreement describes the rights of the Vendor to receive information and redistribute it to its customers (e.g., broker-dealers, institutional investors, and individual investors). Vendors pay fees to OPRA determined in accordance with OPRA's Fee Schedule.
A "Subscriber" is an entity or a person that has the right to use information disseminated by OPRA "internally," i.e., within the Subscriber's organization (if the Subscriber is an entity) or himself or herself (if the Subscriber is a human being). An entity or person that both uses information internally and distributes it to others is both a Vendor and a Subscriber. (For example, a broker-dealer that both uses information disseminated by OPRA internally and distributes it to its customers is both a Vendor and a Subscriber.)
OPRA classifies Subscribers as either "Professional Subscribers" or as "Nonprofessional Subscribers." A Nonprofessional Subscriber is essentially an individual person who will use the information disseminated by OPRA only in connection with individual investment activities and not in connection with any trade or business activities and not for the benefit of any other person (other than immediate family members) or any entity, and who is not employed in the securities industry or the commodity futures industry or by a bank or an insurance company or an affiliate of either to perform functions related to securities or commodity futures investment or trading activity. If a person qualifies as a Nonprofessional Subscriber, the person contracts with a Vendor to receive OPRA information, and the Vendor pays OPRA's fees for the Nonprofessional Subscriber's receipt of the information.
OPRA classifies all Subscribers other than Nonprofessional Subscribers as Professional Subscribers. A Professional Subscriber may contract directly with OPRA to receive information disseminated by OPRA and pay fees directly to OPRA determined in accordance with OPRA's Fee Schedule. If a Professional Subscriber contracts directly with OPRA, the fees that it pays are either based on the number of devices or User IDs that the Professional Subscriber has that are capable of receiving the information (OPRA refers to these fees as "device-based fees"), or based on the number of "registered representatives" that the Professional Subscriber has (OPRA refers to these fees as "enterprise-rate" Professional Subscriber fees).
As an alternative to contracting directly with OPRA, a Professional Subscriber may contract with a Vendor to receive information disseminated by OPRA. In this case, the Vendor pays "usage-based" fees (sometimes called "per-query" fees) to OPRA for the use of the information by the Professional Subscriber.
* This Overview provides a high-level description of OPRA and OPRA's activities. This Overview does not modify the OPRA Plan or any other OPRA document, and in the event of any inconsistency between this Overview and the OPRA Plan or any other OPRA document the other document will control.