Securities and Exchange Commission Section 31 Fee Odd Lot and OTC Options Report
April 26, 2002
As previously communicated in the National Association of Securities Dealers, Inc. (NASD®) Member Alert dated March 4, 2002, the Securities and Exchange Commission (SEC) in its Release No. 34-45489 has issued an order under the "Investor and Capital Markets Fee Relief Act", making a fiscal 2002 mid-year adjustment to the fee rate applicable under Sections 31(b) and (c) of the Securities and Exchange Act of 1934. Effective for trade date April 1, 2002, the revised Section 31 transaction fee rate is $30.10 per million. In calculating the revised fee, one should multiply the aggregate dollar amount of sales of securities transacted by the revised fee rate (.0000301).
Odd Lot and OTC Options Report
Member firms that are required to submit a monthly SEC Section 31 Fee Odd Lot and OTC Options Report to the NASD can find the revised report on-line.
The revised fee rate is effective for trade date April 1, 2002. The Section 31 Fee Odd Lot and OTC Option Report should be prepared on a trade date basis. However, if you prepare the report on a settlement date basis, all transactions, which settle on or before April 3, 2002, will be calculated and reported using the old fee rate (.0000150). All transactions, which settle on April 4, 2002, and thereafter, will be calculated and reported using the revised fee rate (.0000301). Therefore, member firms reporting on a settlement date basis will be required to submit two reports for the month of April 2002. These reports along with payment are due to the NASD on May 10, 2002.
For further information about this NASD Member Alert, please contact Tim Moyer, NASD Director of Billing Services, at 240-386-5342.