- The effective date of the fee reduction is today, Dec. 28, 2001. Given the short notice, the Exchange encourages members and member firms to make the necessary systems changes as quickly as possible while recognizing that such changes may take time to test and implement. The NYSE and SEC staff will not object if all appropriate systems changes are implemented by no later than Feb. 1, 2002 provided that the member or member firm has established procedures to rebate the difference between the old and new fees for transactions made during the interim period.
- In calculating the new fee for a transaction, one should multiply the sale or principal amount of the transaction by the fee rate, which will be truncated at the seventh place after the decimal point. The resulting figure should then be truncated at the fifth place after the decimal point and rounded up to the next cent (if there is any remainder, it should be rounded up).
- Because Form 120-A, which accompanies the fee payment, is prepared on a settlement-date basis, the Form 120-A filing and fees for December 2001 are to be prepared at the old rate and the submission date is Jan. 10, 2002.
- SEC staff has advised that Section 31 fees will no longer apply to sales of options on securities indexes (other than narrow-based security indexes as defined in Section 3(a)(55)(B) of the Securities Exchange Act of 1934). For additional information on this, members and member firms should contact the options exchanges.
- Questions from members or member firms should be directed to their NYSE finance coordinator.
FTSE Mondo Visione Exchanges Index:
NYSE Updates Members Regarding Section 31 Transaction Fees
Date 28/12/2001
The New York Stock Exchange is updating its members and member firms regarding several aspects of the Investor and Capital Markets Relief Act, which will substantially reduce transaction fees collected by the Securities and Exchange Commission (also called "Section 31 fees" for Section 31 of the Securities Exchange Act of 1934).
