Trading Activity Fee
The trading activity fee (TAF) is one of the regulatory fees FINRA assesses to recover the costs of supervising and regulating firms. This includes costs associated with performing examinations, financial monitoring, and FINRA’s policy, rulemaking, interpretive and enforcement activities.
Details of the Trading Activity Fee—including the securities it applies to, transactions that are exempt from the fee and the fee rates—are in Section 1 of Schedule A to FINRA’s By-Laws.
To report TAF payments to FINRA, use the following form:
Below are links to more information about the TAF, including guidance.
The TAF rule flows are intended to aid firms as they develop and review their procedures to ensure they are accurately calculating the TAF. The flows identify decision points firms should evaluate when determining whether a particular type of transaction is subject to the fee.
Important Note: The TAF rule flows do not include all possible scenarios your firm may encounter, and should be reviewed in conjunction with Section 1 of Schedule A to FINRA’s By-Laws and the TAF Frequently Asked Questions (see below). Furthermore, following the TAF rule flows does not guarantee compliance with TAF requirements or provide a safe harbor from regulatory responsibility.
The guidance in this FAQ addresses general questions about the TAF, as well as specific questions about reporting the TAF for equity, debt, options and futures transactions.
12-41: FINRA Amends the TAF Rate for Transactions in Covered Security Futures; Effective Date: October 1, 2012
12-31: SEC Approves Increase in the TAF Rate for Sales of Covered Equity Securities; Effective Date: July 1, 2012
12-06: SEC Approves Increase in the TAF Rate for Sales of Covered Equity Securities; Effective Date: March 1, 2012
11-27: SEC Approves Increase in the TAF Rate for Sales of Covered Equity Securities; Effective Date: July 1, 2011
11-20: SEC Approves Amendments to Transaction Reporting and Trading Activity Fee Rules Related to the Reporting of Asset-Backed Securities Transactions; Effective Date: May 16, 2011
10-56: SEC Approves Amendments to the Trading Activity Fee and FINRA Announces Publication of Frequently Asked Questions; Effective Date: November 1, 2010
08-37: FINRA Reminds Firms that the Trading Activity Fee Is Assessed on Exchange-Listed Options Transactions when FINRA Is the DOEA
Please note: FINRA has published the TAF FAQ (above) to consolidate, and in some cases to update, the guidance previously published and to add additional questions and answers that firms have asked. The TAF FAQ supersede any previous guidance published in the various Notices.
06-71: Clarification of Exemption for Market Makers Acting in the Capacity of Exchange Market Maker and Interpretive Guidance Relating to Riskless Principal Transactions
06-44: Exemption for Registered NASDAQ Market Makers Acting in the Capacity of Exchange Market Maker
06-37: Exemption for Registered NASDAQ Market Makers Acting in the Capacity of Exchange Market Maker
05-61: NASD Solicits Member Comment on Possible Realignment of the Trading Activity Fee; Comment Period Expires October 31, 2005
05-23: NASD Issues Further Guidance on the Trading Activity Fee
05-03: NASD Provides Updated Options Exemption Listing for the Trading Activity Fee
04-84: SEC Approves Adjustments to the Trading Activity Fee
03-43: SEC Approves Increase to the Trading Activity Fee
03-30: SEC Approves Revisions to NASD By-Laws Regarding Trading Activity Fee
02-75: NASD Provides Additional Information on the Trading Activity Fee
02-63: NASD Provides Additional Information on Amendments to Section 8 of Schedule A to NASD's By-Laws to Eliminate the Regulatory Fee and to Implement a New Transaction-Based Trading Activity Fee as Announced in Notice to Members 02-41; Implementation Date: October 1, 2002
02-41: NASD Informs Members of Proposed Changes to NASD's Gross Income Assessment, Personnel Assessment, and Regulatory Fee