OPRA to Issue RFP for New SIP Providers

The Options Price Reporting Authority will next month issue a request for proposal (RFP) to identify potential securities information processors (SIPs) to manage the role of collecting, consolidating and distributing the OPRA feed of US options quote and trade data.

OPRA has enlisted consultancy Jordan & Jordan to run the RFP process, which is defining the future requirements for a SIP operator, and aims to issue the RFP around April 5 with an accompanying website that will include reference information and specifications, and contact information for submitting a proposal.

Between April 5 and May 3, interested parties may submit questions for OPRA. In the interests of fairness, all questions and answers will be published on the website, though the identities of companies submitting proposals will remain confidential. Final RFPs must be submitted by Friday, May 17, and OPRA aims to name the SIP provider by mid-year, giving any new provider time to prepare to take over the function on January 1, 2021.

However, officials say the RFP is a standard process that OPRA undertakes on a five-yearly basis to ensure the organization is meeting the needs of its clients, rather than a specific decision to replace current provider the Securities Industry Automation Corp (SIAC).

“This in no way reflects any displeasure with SIAC. OPRA wants to investigate all the options out there, and deliver the best solution to the industry—which could be the current SIP provider, or a new SIP provider,” says Jim Roche, managing director at OPRA. “The OPRA management committee is always looking for improvement—and credit to SIAC, they have kept pace with the capacity, latency, and regulatory requirements—and any respondent to the RFP would have to demonstrate they have the ability to do so as well,” he says, as these areas “are going to require constant improvements.”

In addition, proposals should demonstrate a transition plan with minimal disruption.