Securities And Exchange Commission Fee Rate Advisory #3 For Fiscal Year 2003

When fiscal year 2003 starts on Oct. 1, 2002, the Securities and Exchange Commission will be operating under a continuing resolution projected to run through October 4, 2002. Therefore, the Section 6(b) fee rate applicable to the registration of securities, the Section 13(e) fee rate applicable to the repurchase of securities, and the Section 14(g) fee rates applicable to proxy solicitations and statements in corporate control transactions will remain at the current rate of $92.00 per million. Five days after enactment of the Commission's regular appropriation, the fee rates for Section 6(b) of the Securities Act of 1933 and Sections 13(e) and 14(g) of the Securities Exchange Act of 1934 will be reduced from $92.00 per million to $80.90 per million as previously announced.

In addition, the Section 31 fee rate applicable to securities transactions on the exchanges and Nasdaq also will remain at the current rate of $30.10 per million. Thirty days after enactment of the Commission's regular appropriation, the fee rate for Section 31 transactions will be reduced to $25.20 per million as previously announced.

Self-regulatory organizations collect Section 31 fees pursuant to their rules. Additional information on the transition to the new Section 31 fee rate will be available before the new rate becomes effective on the web sites of The New York Stock Exchange and NASD Regulation at http://nyse.com and http://nasdr.com. A copy of the Commission's April 29, 2002, order regarding fee rates for fiscal year 2003, including the calculation methodologies, is available at /rules/other/33-8095.htm.

The Commission will issue further notices as appropriate to keep the public informed of developments relating to enactment of the Commission's regular appropriation and the effective dates for the above fee rate changes. These notices will be posted at the SEC's Internet web site at http://www.sec.gov.