What is Options Price Reporting Authority ?

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The Options Price Reporting Authority (OPRA) is a committee of representatives from participating securities exchanges responsible for providing last-sale options quotations and information from the participating exchanges.Serving as a national market system plan, OPRA oversees the process by which participants exchange, consolidate and disseminate market data. OPRA's two primary data feeds include (last sale reports for completed securities transactions) and (bids and offers for options).

Definition

The Options Price Reporting Authority (OPRA) is a committee composed of representatives from participating securities exchanges, responsible for providing the latest trading options quotes and information from these exchanges. It functions as a national market system plan, overseeing the process of exchanging, consolidating, and disseminating market data among participants.

Origin

OPRA was established in 1975 to enhance transparency and efficiency in the options market through a unified market data system. As the options market expanded, OPRA's role evolved to meet new market demands and technological advancements.

Categories and Features

OPRA's primary functions include providing two key types of data: the last reported trades of securities and the bid and ask quotes for options. This data helps investors and market participants make informed trading decisions. OPRA's data services are characterized by their real-time nature and accuracy, ensuring timely transmission of market information.

Case Studies

A typical case is the Chicago Board Options Exchange (CBOE), one of OPRA's participants, which uses OPRA's data to enhance the transparency and reliability of its market quotes. Another example is the New York Stock Exchange (NYSE), which utilizes OPRA's data services to support its options trading platform, ensuring investors have access to the latest market information.

Common Issues

Investors using OPRA data might encounter issues such as data delays or inaccuracies, often due to technical malfunctions or network latency. To avoid these problems, investors should ensure the stability and reliability of their data reception systems. Additionally, misunderstanding the purpose and limitations of OPRA data is a common issue; investors should understand that this data is for reference only and not direct investment advice.

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