|
|
Background
Section 31(j)(1)1 of the Securities Exchange Act of 1934 (the “Exchange Act”)2 specifies that the Securities and Exchange Commission (“SEC” or “Commission”) shall adjust the filing and securities transaction fee rates on an annual basis, after consultation with the Congressional Budget Office (“CBO”) and the Office of Management and Budget (“OMB”).
Annual Fee Rate Adjustment
Pursuant to SEC Press Release No. 2006-168, dated September 29, 2006 (Fee Rate Advisory #3 for Fiscal Year 2007)3, effective October 1, 2006, the Section 6(b) fee rate applicable to the registration of securities, the Section 13(e) fee rate applicable to the repurchase of securities, and the Section 14(g) fee rate applicable to proxy solicitations and statements in corporate control transactions will remain at the current rates through November 17, 2006.
Effective five days after the date on which the Commission receives its fiscal year 2007 regular appropriation, the Section 6(b)4 fee rate applicable to the registration of securities, the Section 13(e) fee rate applicable to the repurchase of securities, and the Section 14(g) fee rates applicable to proxy solicitations and statements in corporate control transactions will decrease to $30.70 per million from the current rate of $107.00 per million.
In addition, effective thirty days after the date on which the Commission receives its fiscal year 2007 regular appropriation, the Section 31 fee rate applicable to securities transactions on the exchanges and in the over-the-counter markets will decrease to $15.30 per million from the current rate of $30.70 per million. On that same date, the assessment on security futures transactions under Section 31(d) will decrease to $0.0042 for each round turn transaction from the current rate of $0.009 for each such transaction.
Pursuant to NYSE Rule 440H (“Activity Assessment Fees”), the Exchange offsets its Section 31 fee obligations by collecting “Activity Assessment Fees”5 from its member organizations based on securities transaction data reported by the Depository Trust & Clearing Corporation at a rate equal to that prescribed under Section 31.
A copy of the Commission's order regarding fee rates for fiscal year 2007, including the calculation methodology, is available at http://www.sec.gov/rules/other/2006/33-8681.pdf.
Please contact your Finance Coordinator with any questions you may have regarding this memo.
|
| _______________________________________ | |
Grace B. Vogel
| |
Executive Vice President
| |
Member Firm Regulation
| |
|
|
|
|
|
| |
| |
|
|
|
|