SEC Amends OPRA Plan To Allocate OPRA Systems Capacity Among Options Markets During Peak Usage Periods

The Securities and Exchange Commission yesterday (November 27) issued an order that amends the Options Price Reporting Authority (OPRA) Plan for Reporting of Consolidated Options Last Sale Reports and Quotation Information (OPRA Plan) by allocating OPRA systems capacity during peak usage periods pursuant to a formula.

Over the past year, the quotation data generated by the options exchanges have, at times, exceeded the limits of OPRA's systems capacity. The options exchanges have implemented temporary amendments to the OPRA Plan, which the Commission has approved, to allocate existing capacity during peak periods. To date, however, the options exchanges have been unable to agree on quote mitigation strategies or an objective formula by which capacity can be allocated during peak usage periods. The formula, adopted by the Commission yesterday, is intended to encourage the efficient use of this scarce resource and will be applied only in the short term, until the options exchanges have resolved the continuing capacity concerns.