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Notice To Members 83-35

Adoption of Section 9 of Article III, Schedule A of the Association's By-Laws; Fee on Cleared Transactions

Published Date:
Fee on Cleared Transactions

TO: All NASD Members

The Association is announcing the adoption and implementation of a new Section 9 of Schedule A to Article III of the By-Laws. This section, which is effective July 1, 1983, provides for the continuation of the fee now assessed by the National Securities Clearing Corporation (NSCC) as a regulatory fee with a reduction of that fee from 12 cents per side for round lot, over-the-counter transactions to 10 cents per side. In addition the applicability of the fee is being extended to over-the-counter transactions cleared through any registered clearing agency. Section 9 provides for a fee not to exceed 12 cents per side but the Board of Governors has determined to reduce the fee to 10 cents per side.

When their respective clearing facilities were consolidated in 1977, the NASD, NYSE and AMEX executed a shareholder's agreement which provided that the NASD, NYSE and AMEX would be paid 12 cents a side for each round lot transaction executed in their respective markets and cleared through NSCC. This aspect of the NSCC shareholder's agreement expired on June 30, 1983, and will be replaced for purposes of over-the-counter transactions by the fee described herein. As previously noted, the fee has been extended to over-the-counter transactions which are cleared through the facilities of any registered clearing agency and therefore will not be limited to NSCC cleared transactions. The fee will apply to a broader membership base and will therefore be more equitably allocated among NASD members.

The Board of Governors has asked NSCC and the other clearing organizations to collect the fee for the convenience and accommodation of Association members.

NSCC will automatically collect the fee through its daily settlement process and it is anticipated that the regional clearing corporations will make similar arrangements.

Appropriate charges will be made to the accounts of members on a monthly basis with the first billings anticipated for the month ending July 29, 1983. The text of Section 9 follows.

Please direct any questions concerning the fee and/or the collection process to James Allen, Controller, NASD, at (202) 728-8181.


Gordon S. Macklin

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Each member shall be assessed a charge not to exceed 12 cents per side for each over-the-counter transaction with another member of the Association cleared through a registered clearing agency in which the member acts either as an agent or a principal for the purchase and/or sale of equity securities.

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