NASD Notice to Members 05-03 - January 2005

NASD Provides Updated Options Exemption Listing for the Trading Activity Fee

Executive Summary

In 2003, the Securities and Exchange Commission (SEC) approved amendments to the NASD By-Laws establishing a Trading Activity Fee (TAF).1 Among the covered securities excluded from the TAF are transactions in exchange-listed options effected by a member for which NASD is not the designated options examining authority(DOEA). Attached is an updated list of broker-dealers, effective January 1, 2005, for which NASD is not the DOEA. All member firms, other than those listed in Attachment A, are assessed a TAF on transactions they effect in exchange-listed options. As changes are required, a revised list will be published in a future Notice to Members.