On January 9, 2020, the Securities and Exchange Commission announced the second fee rate advisory for fiscal year 2020. Starting on February 18, 2020, the fee rates applicable to most securities transactions will be set at $22.10 per million dollars.
Each SRO will continue to pay the SEC a rate of $20.70 per million for covered sales occurring on charge dates through February 17, 2020, and a rate of $22.10 per million for covered sales occurring on charge dates on or after February 18, 2020.
More information on the term “charge date” is available in Rule 31(a)(3) and Exchange Act Release No. 49928.
The assessment on security futures transactions will remain unchanged at $0.0042 for each round turn transaction.
These new SEC fee rates were determined in accordance with Section 31 of the Securities Exchange Act of 1934, which requires each national securities exchange and national securities association to pay transaction fees to the SEC. Specifically, Section 31(b) requires each national securities exchange to pay fees to the SEC based on the aggregate dollar amount of sales of certain securities (“covered sales”) transacted on the exchange, and Section 31(c) requires each national securities association to pay fees to the SEC based on the aggregate dollar amount of covered sales transacted by or through any member of the association other than on an exchange. As part of Section 31, the SEC is required to annually adjust the fee rates under Sections 31(b) and (c) to a uniform adjusted rate.
The SEC will issue further notices relating to fees under Section 31 as necessary.
Sources:
SEC Release No. 34-87918: Order Making Fiscal Year 2020 Annual Adjustments to Transaction Fee Rates (www.sec.gov)
Fee Rate Advisory #2 for Fiscal Year 2020 (www.sec.gov)
