New (NASD) fee

Discussion in 'Trading' started by matt5555, Sep 1, 2003.

  1. matt5555


    Just got an email from my broker saying there is a new fee effective tommorow. It's called the trading activity fee, by the NASD, not the SEC, and it is $0.0001 per share, with a max fee of $10.
  2. Is it for public or licensed traders?
    When the hell did this happen?
  3. Here is the article you are talking about.
    You only pay on one side so its net effective rate is 5 cents per 1000 shares.

    Adjustment to NASD Trading Activity Fee Initial Rates

    Last Updated: 10/17/02

    On Friday, September 27th, 2002, NASD announced the initial rate structure for Section 2(b) [Trading Activity Fee] effective October 1, 2002 pursuant to the provisions of Schedule A, Section 2 [Member Regulation Fees] to NASD's By-Laws. Based on further analysis of trading volumes, the rate structure has been adjusted to incorporate a per trade maximum, retroactively effective to October 1, 2002 as follows:

    Each member shall pay to NASD $0.0001 per share for each sale of a covered security, with a maximum charge of $10 per trade.

    Each member shall pay to NASD $0.002 per contract for each sale of an option.

    Each member shall pay to NASD $0.08 for each round turn transaction of a security future.
    Additionally, if the execution price for a covered equity security is less than the Trading Activity Fee rate ($0.0001) on a per share basis then no fee will be assessed.

    Due to these adjustments, firms may have an additional 10 business days to self-report and remit payment for the October 2002 period, due no later than November 29th.

    For background information on the Trading Activity Fee, please refer to Notice to Members 02-41 and Special Notice to Members 02-63. Additionally, please refer to the September 27th announcement regarding NASD Trading Activity Fee Initial Rates.

    Questions concerning this notification should be directed to NASD Finance, at (240) 386-5397, or NASD Regulatory Policy and Oversight, Office of General Counsel, at (202) 728-8071.

  4. H2O


    If the rate is $0.0001 and you only pay on 1 side, then you pay on a 1000 share trade (buy 1000 / sell 1000):

    1000 (since you will only be charged one side, not buy&sell) ) * $0.0001 = $0.10
  5. so wait, is this something new, or old?

    the NASD release said Oct 2002, not 03.