Securities and Exchange Commission (SEC) Transaction Fee

December 27, 2001


The National Association of Securities Dealers, Inc. (NASD®) would like to notify its members that Congress just passed H.R. 1088 that reduces the fee rates found in Section 31 of the Securities Exchange Act of 1934. This reduction will become effective Friday, December 28, 2001. More information is available on the SEC Web site and an upcoming NASD Notice to Members will be posted on the NASD Regulation Web site.


H.R. 1088 or the "Investor and Capital Markets Relief Act" (the Act) amends Section 31 of the Securities Exchange Act of 1934. This Act will reduce the fee to $15 per $1,000,000 on the sale of covered securities. Representatives of the SEC have informed the NASD that December 28th will be the effective date for this new rate, even though the President is not expected to sign it into law until early in the new year.


The NASD is currently working on a solution to properly implement this fee reduction in the NASD billing systems. Please note that the fee change will be effective December 28, 2001. If a member is not able to make system changes immediately it should make the changes as soon as possible, and also ensure that appropriate payment adjustments that reflect the December 28 effective date are made with customers at the earliest practicable time.


For further information about this NASD Member Alert, please contact Tim Moyer, NASD Director of Billing Services, at 240-386-5342.


Please view an updated Member Alert issued on December 28, 2001.