SEC Fee Rates

and Options Regulatory Fee (ORF)

The Investor and Capital Markets Fee Relief Act requires that the Commission make annual adjustments to the rates for fees paid under Section 6(b) of the Securities Act of 1933 and Sections 13(e), 14(g), and 31 of the Securities Exchange Act of 1934.

The Section 31 fee rate applicable to securities transactions on the exchanges and Nasdaq are as follows:

0.0000333 is the rate in effect prior to December 28, 2001

0.0000150 is the rate effective December 28, 2001 (annual adjustment was announced on December 21, 2001 & January 16, 2002)

0.0000301 is the rate effective April 1, 2002 (mid-year adjustment was announced on March 1, 2002)

0.0000252 is the rate effective March 22, 2003 (annual adjustment was announced on April 29, 2002 & September 17, 2002 & September 30, 2002 & October 4, 2002 & October 11, 2002 & October 18, 2002 & November 22, 2002 & January 10, 2003 & January 31, 2003 & February 7, 2003 & February 21, 2003)

0.0000468 is the rate effective April 1, 2003 (mid-year adjustment was announced on February 28, 2003 – Fee Rate Advisory #12 for Fiscal Year 2003)

0.0000390 is the rate effective February 22, 2004 (annual adjustment was announced on April 30, 2003 & September 15, 2003 & September 30, 2003 & October 31, 2003 & November 7, 2003 & November 24, 2003 & January 26, 2004)

0.0000234 is the rate effective April 1, 2004 (mid-year adjustment was announced on February 27, 2004 – Fee Rate Advisory #8 for Fiscal Year 2004)

0.0000329 is the rate effective January 7, 2005 (annual adjustment was announced on October 1, 2004 & September 27, 2004 & September 30, 2004 & November 22, 2004 & November 29, 2004 & December 9, 2004)

0.0000418 is the rate effective April 1, 2005 (mid-year adjustment was announced on March 1, 2005 – FEE RATE ADVISORY #7 FOR FISCAL YEAR 2005)

0.0000307 is the rate effective December 22, 2005 (annual adjustment was announced on April 29, 2005 & September 27, 2005 & September 30, 2005 & November 18, 2005 & November 23, 2005)

0.0000307 is the rate effective April 1, 2006 (mid-year adjustment not required as announced on March 1, 2006 – Fee Rate Advisory #6 for Fiscal Year 2006)

0.0000307 is the rate still effective as of October 1, 2006 (annual adjustment was announced on September 26, 2006 & September 29, 2006 & November 17, 2006 & December 8, 2006 & February 15, 2007, also see 5/4/06 & 2/16/2007 news stories below)

0.0000153 is the rate effective March 17, 2007 (as announced on March 1, 2007, also see 2/16/2007 news release below)

0.0000153 is the rate effective April 1, 2007 (mid-year adjustment not required as announced on March 1, 2007 – Fee Rate Advisory #8 for Fiscal Year 2007)

0.0000110 is the rate effective January 25, 2008 (annual adjustment was announced on May 7, 2007 & September 28, 2007 & November 15, 2007 & December 14, 2007 & December 21, 2007 & December 27, 2007)

0.0000056 is the rate effective April 1, 2008 (optional mid-year adjustment was announced on February 29, 2008 – Fee Rate Advisory #7 for Fiscal Year 2008)

0.0000930 was the potential rate effective October 1, 2008 (or later) (proposed annual adjustment was announced on April 30, 2008) & September 29, 2008 /and then canceled

0.0000056 is the rate still effective as of October 1, 2008 (annual adjustment must be announced no later than April 30, 2008)

0.0000257 is the rate effective April 10, 2009 (mid-year adjustment was announced too late on March 4, 2009 was due March 1, 2009) & March 6, 2009 & March 11, 2009)

0.0000127 is the rate effective January 15, 2010 (annual adjustment was announced on April 30, 2009 & September 28, 2009 & October 30, 2009 & December 17, 2009)

0.0000169 is the rate effective April 1, 2010 (optional mid-year adjustment was announced on March 1, 2010 – Fee Rate Advisory #5 for Fiscal Year 2010)

0.0000192 is the rate effective January 21, 2011 (annual adjustment was announced on April 30, 2010 & September 29, 2010 & December 3, 2010 & December 18, 2010 & December 22, 2010)

0.0000192 is the rate effective April 1, 2011 (mid-year adjustment not required as announced on March 2, 2011 – Fee Rate Advisory #6 for Fiscal Year 2011)

0.0000151 was the potential rate effective October 1, 2011 (or later) (proposed annual adjustment was announced on May 2, 2011) /and then canceled

0.0000180 is the rate effective February 21, 2012 (annual adjustment was announced on January 20, 2012 – Fee Rate Advisory #5 for Fiscal Year 2012)

0.0000224 is the rate effective April 1, 2012 (optional mid-year adjustment was announced on March 1, 2012 – Fee Rate Advisory #6 for Fiscal Year 2012)

0.0000224 is the rate still effective as of October 1, 2012 (annual adjustment was not made, as announced on November 15, 2012 – Fee Rate Advisory #2 for Fiscal Year 2013)

0.0000224 is the rate still effective as of April 1, 2013 (mid-year adjustment not required but no announcement regarding this was issued)

0.0000174 is the rate effective May 25, 2013 (annual adjustment was announced on April 25, 2013 – Fee Rate Advisory #3 for Fiscal Year 2013)

0.0000174 is the rate still effective as of October 1, 2013 (annual adjustment was not made, as announced on October 31, 2013 – Fee Rate Advisory #2 For Fiscal Year 2014)

0.0000221 is the rate effective March 18, 2014 (annual adjustment was announced on February 12, 2014 – Fee Rate Advisory #3 for Fiscal Year 2014)

0.0000221 is the rate effective April 1, 2014 (mid-year adjustment not required as announced on February 28, 2014 – Fee Rate Advisory #4 for Fiscal Year 2014)

0.0000221 is the rate still effective as of October 1, 2014 (annual adjustment was not made, as announced on September 30, 2014 – Fee Rate Advisory #2 For Fiscal Year 2015)

0.0000184 is the rate effective February 14, 2015 (annual adjustment was announced on January 15, 2015 – Fee Rate Advisory #3 for Fiscal Year 2015)

0.0000184 is the rate effective April 1, 2015 (mid-year adjustment not required as announced on February 27, 2015 – Fee Rate Advisory #4 for Fiscal Year 2015)

0.0000184 is the rate still effective as of October 1, 2015 (annual adjustment was not made, as announced on September 30, 2015 – Fee Rate Advisory #2 For Fiscal Year 2016)

0.0000218 is the rate effective February 16, 2016 (annual adjustment was announced on January 7, 2016 – Fee Rate Advisory #3 for Fiscal Year 2016)

0.0000218 is the rate effective April 1, 2016 (mid-year adjustment not required as announced on February 25, 2016 – Fee Rate Advisory #4 for Fiscal Year 2016)

0.0000218 is the rate still effective as of October 1, 2016 (annual adjustment was not made, as announced on September 30, 2016 – Fee Rate Advisory #2 For Fiscal Year 2017)

Effective September 5, 2017 the T+3 standard settlement cycle for most broker-dealer securities transactions (the time between the trade date and the settlement date) will shorten from three business days to two days (T+2) (as announced on March 22, 2017 – SEC Adopts T+2 Settlement Cycle for Securities Transactions)

0.0000231 is the rate effective July 4, 2017 (mid-year adjustment as announced on May 31, 2017 – Fee Rate Advisory #3 for Fiscal Year 2017)

0.0000231 is the rate still effective as of October 1, 2017 (annual adjustment was not made, as announced on September 29, 2017 – Fee Rate Advisory #2 For Fiscal Year 2018)

0.0000130 is the rate effective May 22, 2018 (mid-year adjustment as announced on April 17, 2018 – Fee Rate Advisory #3 for Fiscal Year 2018)

0.0000130 is the rate still effective as of October 1, 2018 (annual adjustment was not yet made)

0.0000207 is the rate effective April 16, 2019 (mid-year adjustment as announced on March 12, 2019 – Fee Rate Advisory #2 for Fiscal Year 2019)

0.0000207 is the rate still effective as of October 1, 2019 (annual adjustment was not yet made)

0.0000221 is the rate effective February 18, 2020 (mid-year adjustment as announced on January 9, 2020 – Fee Rate Advisory #2 for Fiscal Year 2020)

0.0000207 is the rate still effective as of October 1, 2020 (annual adjustment was not yet made)

0.0000051 is the rate effective February 25, 2021 (mid-year adjustment as announced on January 15, 2021 – Fee Rate Advisory #2 for Fiscal Year 2021)

0.0000051 is the rate still effective as of October 1, 2021 (annual adjustment was not made, as announced on February 26, 2021 – Fee Rate Advisory #3 For Fiscal Year 2021)

0.0000229 is the rate effective May 14, 2022 (mid-year adjustment as announced on April 8, 2022 – Fee Rate Advisory #1 for Fiscal Year 2022)

0.00000xx is the rate still effective as of October 1, 2022 (annual adjustment was not made, as announced on May xx, 2022 – Fee Rate Advisory #3 For Fiscal Year 2022)

0.00000xx is the rate effective February xx, 2023 (mid-year adjustment as announced on January xx, 2023 – Fee Rate Advisory #2 for Fiscal Year 2023)

0.00000xx is the rate still effective as of October 1, 2023 (annual adjustment was not made, as announced on May xx, 2023 – Fee Rate Advisory #3 For Fiscal Year 2023)

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0.0000xxx is the rate effective April 1, 201X (optional mid-year adjustment must be announced no later than March 1, 201X)

0.0000xxx is the rate effective January X, 201X (annual adjustment was announced on xxx 1, 201X)

In calculating the new fee for a transaction, one should multiply the sale or principal amount of the transaction by the fee rate, which will be truncated at the seventh place after the decimal point. The resulting figure should then be truncated at the fifth place after the decimal point and rounded up to the next cent (if there is any remainder you should round up).

As a reminder, the new law (Investor and Capital Markets Relief Act, with an effective date of December 28, 2001) provides for an annual adjustment of the fee rate and, in some circumstances, a mid-year adjustment. The SEC will publish the revised rates well in advance of an adjustment.

Recent Fee Rate Advisories: https://www.sec.gov/fast-answers/divisionsmarketregmrexchangesshtml.html#section31

THE FOLLOWING IS A WORK IN PROGRESS – links to supporting information would be appreciated: email link

The Trading Activity Fees (TAF) which is one of the member regulatory fees that FINRA assesses to recover the costs of supervising and regulating firms, are as follows:

0.000119 per share of common stock sold (maximum of $5.95 per trade)
0.002 per stock option sold

THE FOLLOWING IS A WORK IN PROGRESS – links to supporting information would be appreciated: email link

Options Regulatory Fees (ORF) which are an exchange fee which Options Clearing Corporation (OCC) collects from its clearing members to offset exchange costs relating to the supervision and regulation of the options market, are as follows:

In 2011 a new transaction-based fee generally was being passed on to all retail customers (some brokerages were passing the ORF to customers as early as 2009).

The fee was proposed by the Chicago Board Options Exchange (CBOE) in October 2008.
The fee was initiated by the CBOE in early 2009,
by each of the BOX, ISE and PHLX in January 2010,
by AMEX and ARCA in May 2011,
by NASDAQ Options Market (NOM) in January 2012,
by CBOE C2in August 2012,
by Miami in January 2013,
by Winklevoss Bitcoin / International Securities Exchange / ISE Gemini in August 2013,
by Bats BZX in February 2015 and
by NASDAQ OMX BX in February 2016.

The combined fees were charged to retail customer orders at the following rates per U.S. exchange listed option contract.
0.0060 is the fee per contract in effect March 1, 2009 (there was a 0.01 {one cent} minimum fee per trade) ( FAQ issued on February 26, 2009 – Regulatory Circular RG09-30)
0.0040 is the fee per contract in effect September 2009
0.0140 is the fee per contract in effect January 2010
0.0135 is the fee per contract in effect August 2010 (semi-annual adjustment announced on Xxx XX, 201X – )
0.0145 is the fee per contract in effect January 2011
0.0225 is the fee per contract in effect May 2011
0.0245 is the fee per contract in effect January 2012 (adjustment announced on December 8, 2011 – SEC Release No. 34-65913)
0.0257 is the fee per contract in effect June 2012
0.0292 is the fee per contract in effect August 2012 (semi-annual adjustment announced on Xxx XX, 201X – )
0.0312 is the fee per contract in effect November 2012
0.0377 is the fee per contract in effect January 2013
0.0387 is the fee per contract in effect August 2013 (semi-annual adjustment missed, new rate announced on May 14, 2013 – SEC Release No. 34-69570)
0.0356 is the fee per contract in effect September 2013
0.0353 is the fee per contract in effect November 2013
0.0391 is the fee per contract in effect January 2014
0.0396 is the fee per contract in effect February 2014 (semi-annual adjustment announced on January 2, 2014 – SEC Release No. 34-71225)
0.0401 is the fee per contract in effect April 2014
0.0382 is the fee per contract in effect August 2014 (semi-annual adjustment announced on Xxx XX, 201X – )
0.0400 is the fee per contract in effect February 2015 (semi-annual adjustment announced on Xxx XX, 201X – )
0.0427 is the fee per contract in effect August 2015 (semi-annual adjustment announced on Xxx XX, 201X – )
0.0417 is the fee per contract in effect September 2015 (adjustment announced on August 21, 2015 – SEC Release No. 34-75749)
0.0404 is the fee per contract in effect February 2016 (semi-annual adjustment announced on December 28, 2015 – Options Trader Alert #2015 – 37)
0.0407 is the fee per contract in effect August 2016 (semi-annual adjustment announced on July 1, 2016 – Options Trader Alert #2016 – 16)
0.0405 is the fee per contract in effect February 2017 (semi-annual adjustment announced on September 1, 2016 – SEC Release No. 34-78746)

0.0169 is the fee per contract in effect May 6, 2018
0.0164 is the fee per contract in effect August 1, 2019

Securities Industry and Financial Markets Association (SIFMA) Guide to Exchange Collection Scenarios and Rates

CBOE Options Exchange Fee Schedule Notices: https://markets.cboe.com/us/options/notices/fee_schedule/

Important Clarification from our gummint:
We have been asked to “clarify” to our readers that that the Securities Exchange Commission (SEC) does not impose a fee (a/k/a the Section 31 fee) on any of our tax planning trader or investor clients. In typical gov’t bureaucracy-speak the SEC wants you to be informed that: “The SEC does not impose or set any of the brokerage fees that investors must pay. Instead, under Section 31 of the Securities Exchange Act of 1934, self-regulatory organizations … and all of the national securities exchanges … must pay transaction fees to the SEC…”

It is the greedy self-regulatory organizations and exchanges who “have adopted rules that require their broker-dealer members to pay their fair share of these fees.” And it is the greedy broker-dealers, who “in turn, pass the responsibility of paying the fees to their customers.”

So with this helpful SEC clarification effectively saying “don’t blame us” – we should understand that the “SEC Section 31” fee is actually a “retail broker fee” rather than a fee charged against investors, or so says the SEC.

http://www.sec.gov/answers/sec31.htm

US regulator reducing fees on securities transactions by $1 billion

Associated Press WorldStream via NewsEdge Corporation : WASHINGTON_The Securities and Exchange Commission will reduce by $1 billion (€790 million) the fees it levies on securities transactions, a move that will be a boon to ordinary investors, the head of the agency told Congress on Wednesday.

SEC Chairman Christopher Cox announced the move as he testified at a hearing of the House Financial Services Committee, outlining a number of initiatives taken during his nine-month tenure meant to enhance the disclosure of financial information, reduce the complexity of regulations and protect older people from investment scams.

A portion of the fees go to fund the SEC’s operations. Starting in the fiscal year that begins Oct. 1, the fees that the SEC charges companies to register and issue stocks and other securities will be reduced by 71.3 percent, while most fees levied on securities transactions will be cut in half.

“That money will stay in investors’ pockets,” Cox said. Money that ultimately would have come from investors could now go instead for retirement savings and other investments, he said.

The reduction in fees, made in line with federal law, will not affect the amount of money available to fund the agency, the SEC said.

<<Associated Press WorldStream — 05/04/06>>

SEC Chairman Cox Announces $700 Million Fee Cut to Benefit Investors
Washington, D.C., Feb. 16, 2007 – Securities and Exchange Commission Chairman Christopher Cox announced today that, starting next week, the agency will sharply cut the fees charged to public companies and other issuers for securities transactions and registrations.

“The investors who bear the burden of these SEC fees deserve this relief,” said SEC Chairman Christopher Cox. “It will mean that more of their hard earned savings will be available for important needs such as education, health care, and retirement — and less will be diverted to Washington.”

The SEC sets registration and transaction fees according to the Investor and Capital Markets Fee Relief Act. The fee cuts that will go into effect next week are significant: fees to register securities with the Commission will be reduced by 71.3 percent, and fees on securities transactions will be reduced by 50.2 percent.

Background

Under the Investor and Capital Markets Fee Relief Act, the SEC makes annual adjustments to the rates paid under Section 6(b) of the Securities Act of 1933 and Sections 13(e), 14(g), and 31 of the Securities Act of 1934. The fee cuts the SEC intended to put into effect for 2007 were thrown into question, however, because the law makes fee rate changes effective only upon enactment of the Commission’s “regular appropriations” — and for fiscal 2007, Congress passed a continuing resolution for the entire government, instead of the regular appropriations bill that includes the SEC. As a result, the agency requested special legislative relief to permit the fee cuts to go forward. Congress agreed to the request, and on Feb. 15, 2007, President Bush signed House Joint Resolution 20, the continuing resolution for the remainder of FY 2007, which stated that it shall be deemed the Commission’s “regular appropriation” for FY 2007. That, in turn, triggered the fees cuts.

Accordingly, effective Feb. 20, 2007, the Section 6(b) fee rate applicable to the registration of securities, the 13(e) fee rate 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 decrease to $30.70 per million dollars. The Section 6(b) rate also is the rate used to calculate the fees payable with the Annual Notice of Securities Sold pursuant to Rule 24f-2 under the Investment Company Act of 1940.

All filings submitted to the SEC before 5:30 p.m. EST, and filings pursuant to Rule 462(b) (17 C.F.R. 230.462(b)) submitted to the SEC before 10:00 p.m. EST, on Feb. 19, 2007, will be subject to the current fee rate of $107.00 per million dollars. Rule 462(b) filings submitted after 10:00 p.m. EST, and all other filings submitted after 5:30 p.m. EST, on Feb. 19, 2007, under Section 232.13 of Regulation S-T (17 C.F.R. 232.13), will be subject to the new fee rate of $30.70 per million dollars.

Questions about the new Section 6(b), Section 13(e), or Section 14(g) fee rates should be directed to the Filer Support Unit in the SEC’s Office of Filings and Information Services at (202) 551-8900.

In addition, effective March 17, 2007, the Section 31 fee rate applicable to securities transactions on the exchanges and over-the-counter markets will decrease to $15.30 per million dollars. Further, pursuant to Section 31, the Commission will determine no later than March 1, 2007 whether a mid-year adjustment to the Section 31 fee rate will be necessary. The Section 31 assessment on security futures transactions also will decrease to $0.0042 per round turn transaction, effective March 17, 2007.

The adjusted fee rates will not affect the amount of funding available to the Commission.

The Commission will announce the new fee rates for FY 2008 no later than April 30, 2007. These fee rates will become effective October 1, 2007, or after the Commission’s FY 2008 appropriation is enacted.

Additional information on the Section 31 fee rate will be available on the Internet websites of the New York Stock Exchange and the NASD at http://www.nyse.com and http://www.nasd.com, respectively. The Division of Market Regulation’s Office of Interpretation and Guidance also is available to answer questions relating to Section 31. That office may be reached by phone at 202-551-5777 or by email at marketreg@sec.gov.

The Commission will issue further notices as appropriate to keep the public informed of developments relating to the fee rates. These notices will be posted at the SEC’s Internet web site at http://www.sec.gov.

http://www.sec.gov/news/press/2007/2007-24.htm

The Office of Interpretation and Guidance in the Commission’s Division of Trading and Markets is available for questions on Section 31 fees at (202) 551-5777, or by e-mail at tradingandmarkets@sec.gov

The Commission is required to 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). A copy of the Commission’s April 30, 2007, order regarding fee rates for fiscal year 2008 is available at http://www.sec.gov/rules/other/2007/33-8794.pdf

The adjusted fee rates will not affect the amount of funding available to the Commission.

The Commission will announce the new fee rates for fiscal year 2009 no later than April 30, 2008. These fee rates will become effective Oct. 1, 2008, or after the Commission’s fiscal year 2009 appropriation is enacted, whichever is later. In addition, the Commission may be required to make a “mid-year” adjustment to the Section 31 fee rate for fiscal year 2008, after consultation with CBO and OMB, which would be announced no later than March 1, 2008, effective April 1, 2008.

The Commission will issue further notices as appropriate to keep the public informed of developments relating to enactment of the Commission’s regular appropriation and the effective dates for the above fee rate changes. These notices will be posted at the SEC’s Internet web site at http://www.sec.gov

Sec 1256 item (trick):
How to potentially identify §1256 transactions: Section 31 fees no longer apply to sales of options on securities indexes (other than narrow-based security indexes). Therefore, if your sales proceeds are being reduced by the fee rates listed above, the trade is not a Sec 1256 transaction. (see update below)

Note: The charges on the gross sales of most securities transactions are known as Section 31 “fees.” But there can be different per transaction charges imposed by Section 31 on transactions in security futures which are termed “assessments.” The assessment on security futures transactions under Section 31(d) has been $0.0042 for each round turn transaction.

Update:
Final Rule: http://www.sec.gov/rules/final/34-45371.htm

Exemption of Transactions in Certain Options and Futures on Security Indexes from Section 31 of the Exchange Act

SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 240
[Release No. 34-45371]

Exemption of Transactions in Certain Options and Futures on Security Indexes from Section 31 of the Exchange Act

On January 16, 2002, President Bush signed into law the Investor and Capital Markets Fee Relief Act (“Fee Relief Act” Pub. L. No. 107-123, 115 Stat. 2390 (2002)) which, among other things, amends Section 31 to provide that “options on securities indexes (excluding a narrow-based security index)” are exempt from the fee requirements of Section 31. Thus, as provided by statute, national securities exchanges and national securities associations are not required to pay to the Commission fees on sales of options on security indexes that are not narrow-based security indexes (The term “narrow-based security index” is defined in Section 3(a)(55)(B) of the Exchange Act, 15 U.S.C. 78c(a)(55)(B) – i.e., are “broad-based security indexes”). The exclusion of sales of options on broad-based indexes from Section 31 fees is consistent with the treatment of futures on broad-based indexes, which compete with options on broad-based indexes and are not subject to assessments under Section 31.

The Commission today is amending Rule 31-1 under the Exchange Act 17 CFR 240.31-1.) by adding new paragraphs (f) and (g) to exempt options and futures, respectively, on narrow-based security indexes from Section 31. The Commission also is adopting conforming amendments to the preliminary note in Rule 31-1.

also see: http://www.traderstatus.com/futures.htm

http://www.sec.gov/news/press/2004-24.htm

http://www.sec.gov/news/press/2005-22.htm

http://www.sec.gov/news/headlines/feeadv13.htm

http://www.ameritrade.com/services/index.html?startpage=rates_fees.fhtml

http://www.google.com/search?hl=en&lr=&ie=UTF-8&oe=UTF-8&q=SEC+Fee+Rate+advisory

http://www.sec.gov/cgi-bin/txt-srch-sec?text=sales+of+options+on+securities+indexes+&x=3&y=6

http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&ssDocName=NASDW_016164

http://www.mondovisione.com/index.cfm?section=news&action=detail&id=72904

http://www.sec.gov/news/press/2009/2009-270.htm

http://www.sec.gov/rules/other/2009/33-9030.pdf

http://www.sec.gov/news/press/2010/2010-29.htm