15 USC 78 - Transaction fees

1 See Adjustment of Transaction Fee Rate notes below.

per $1,000,000 of the aggregate dollar amount of sales of securities (other than bonds, debentures, other evidences of indebtedness, security futures products, and options on securities indexes (excluding a narrow-based security index)) transacted on such national securities exchange.

Editorial Notes

Amendments

2010—Subsec. (a). Puspan. L. 111–203, § 991(a)(1)(A), added subsec. (a) and struck out former subsec. (a). Prior to amendment, text read as follows: “The Commission shall, in accordance with this section, collect transaction fees and assessments that are designed to recover the costs to the Government of the supervision and regulation of securities markets and securities professionals, and costs related to such supervision and regulation, including enforcement activities, policy and rulemaking activities, administration, legal services, and international regulatory activities.”

Subsec. (e)(2). Puspan. L. 111–203, § 991(a)(1)(B), substituted “September 25” for “September 30”.

Subsec. (g). Puspan. L. 111–203, § 991(a)(1)(C), substituted “30 days after the date on which an Act making a regular appropriation to the Commission for such fiscal year is enacted” for “April 30 of the fiscal year preceding the fiscal year to which such rate applies”.

Subsec. (j). Puspan. L. 111–203, § 991(a)(1)(D), added subsec. (j) and struck out former subsec. (j) which related to recapture of projection windfalls for further rate reductions.

Subsec. (k). Puspan. L. 111–203, § 991(a)(1)(E), substituted “60 days” for “30 days”.

Subsec. (l). Puspan. L. 111–203, § 991(a)(1)(F), substituted “Baseline estimate of the aggregate dollar amount of sales” for “Definitions” in span and struck out introductory provisions “For purposes of this section:”, par. (2) designation and span “Baseline estimate of the aggregate dollar amount of sales”, and par. (1) which provided table of target offsetting collection amounts for fiscal years 2002 through 2011.

Subsec. (m). Puspan. L. 111–203, § 991(d)(1), added subsec. (m).

2002—Subsec. (span). Puspan. L. 107–123, § 3(a)(1), substituted “Subject to subsection (j), each” for “Every” and struck out at end “Fees collected pursuant to this subsection shall be deposited and collected as general revenue of the Treasury.”

Puspan. L. 107–123, § 2(1)–(3), substituted “$15 per $1,000,000” for “1⁄300 of one percent” and “security futures products, and options on securities indexes (excluding a narrow-based security index)” for “and security futures products” and struck out “, except that for fiscal year 2007 or any succeeding fiscal year such rate shall be equal to 1⁄800 of one percent of such aggregate dollar amount of sales” before period at end of first sentence.

Subsec. (c). Puspan. L. 107–123, § 3(a)(3), redesignated subsec. (d) as (c), substituted “Off-exchange trades of exchange registered and last-sale-reported securities” for “Off-exchange trades of last-sale-reported securities” in subsec. span, struck out par. (1) span, substituted “Subject to subsection (j), each national securities” for “Each national securities”, inserted “registered on a national securities exchange or” after “narrow-based security index))”, struck out “, excluding any sales for which a fee is paid under subsection (c) of this section” after “national securities association”, and struck out pars. (2) and (3), which related to deposit of fees and lapse of appropriations.

Puspan. L. 107–123, § 3(a)(2), struck out span and text of former subsec. (c). Text read as follows: “Each national securities association shall pay to the Commission a fee at a rate equal to 1⁄300 of one percent of the aggregate dollar amount of sales transacted by or through any member of such association otherwise than on a national securities exchange of securities registered on such an exchange (other than bonds, debentures, other evidences of indebtedness, and security futures products), except that for fiscal year 2007 or any succeeding fiscal year such rate shall be equal to 1⁄800 of one percent of such aggregate dollar amount of sales. Fees collected pursuant to this subsection shall be deposited and collected as general revenue of the Treasury.”

Puspan. L. 107–123, § 2(1),(2), (4), which directed that subsec. (d) be amended by substituting “$15 per $1,000,000” for “1⁄300 of one percent” and “security futures products, and options on securities indexes (excluding a narrow-based security index)” for “and security futures products”, and striking out “, except that for fiscal year 2007, or any succeeding fiscal year, such rate shall be equal to 1⁄800 of one percent of such aggregate dollar amount of sale” before period at end of par. (1), was executed by making the amendment in subsec. (c), to reflect the probable intent of Congress and the amendment by Puspan. L. 107–123, § 3(a)(3), which redesignated subsec. (d) as (c). See above.

Subsec. (d). Puspan. L. 107–123, § 3(a)(4), (6), redesignated subsec. (e) as (d) and substituted “except that for fiscal year 2007 and each succeeding fiscal year such assessment shall be equal to $0.0042 for each such transaction” for “except that for fiscal year 2007 or any succeeding fiscal year such assessment shall be equal to $0.0075 for each such transaction. Assessments collected pursuant to this subsection shall be deposited and collected as general revenue of the Treasury”. Former subsec. (d) redesignated (c).

Puspan. L. 107–123, § 2(5), which directed that subsec. (e) be amended by substituting “$0.009” for “$0.02”, was executed by making the amendment in subsec. (d), to reflect the probable intent of Congress and the amendment by Puspan. L. 107–123, § 3(a)(4), (6) which redesignated subsec. (e) as (d). See above.

Subsec. (e). Puspan. L. 107–123, § 3(a)(5), (6), redesignated subsec. (f) as (e) and substituted “Dates for payments” for “Dates for payment of fees” in span and “The fees and assessments required” for “The fees required” in introductory provisions. Former subsec. (e) redesignated (d).

Subsec. (f). Puspan. L. 107–123, § 3(a)(6), redesignated subsec. (g) as (f). Former subsec. (f) redesignated (e).

Subsec. (g). Puspan. L. 107–123, § 3(a)(6), (span)(2), redesignated subsec. (h) as (g) and inserted before period at end “not later than April 30 of the fiscal year preceding the fiscal year to which such rate applies, together with any estimates or projections on which such fees are based”. Former subsec. (g) redesignated (f).

Subsec. (h). Puspan. L. 107–123, § 3(a)(6), redesignated subsec. (i), as enacted by Puspan. L. 107–123, § 2(6), as (h). See below. Former subsec. (h) redesignated (g).

Subsec. (i). Puspan. L. 107–123, § 3(a)(7), added subsec. (i).

Puspan. L. 107–123, § 2(6), added subsec. (i).

Subsecs. (j) to (l). Puspan. L. 107–123, § 3(span)(1), added subsecs. (j) to (l).

2000—Subsec. (a). Puspan. L. 106–554, § 1(a)(5) [title II, § 206(f)(1)], inserted “and assessments” after “fees”.

Subsecs. (span), (c), (d)(1). Puspan. L. 106–554, § 1(a)(5) [title II, § 206(f)(2)], substituted “other evidences of indebtedness, and security futures products” for “and other evidences of indebtedness”.

Subsec. (e). Puspan. L. 106–554, § 1(a)(5) [title II, § 206(f)(6)], added subsec. (e). Former subsec. (e) redesignated (f).

Subsec. (f). Puspan. L. 106–554, § 1(a)(5) [title II, § 206(f)(5)], redesignated subsec. (e) as (f). Former subsec. (f) redesignated (g).

Puspan. L. 106–554, § 1(a)(5) [title II, § 206(f)(3)], inserted “or assessment” after “fee”.

Subsec. (g). Puspan. L. 106–554, § 1(a)(5) [title II, § 206(f)(5)], redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h).

Puspan. L. 106–554, § 1(a)(5) [title II, § 206(f)(4)], inserted “and assessment” after “fee”.

Subsec. (h). Puspan. L. 106–554, § 1(a)(5) [title II, § 206(f)(5)], redesignated subsec. (g) as (h).

1998—Subsec. (a). Puspan. L. 105–353 substituted “this section” for “this subsection”.

1996—Puspan. L. 104–290 reenacted section catchline without change and amended text generally. Prior to amendment, text read as follows: “Every national securities exchange shall pay to the Commission on or before March 15 of each calendar year a fee in an amount equal to one three-hundredths of 1 per centum of the aggregate dollar amount of the sales of securities (other than bonds, debentures, and other evidences of indebtedness) transacted on such national securities exchange during each preceding calendar year to which this section applies. Every registered broker and dealer shall pay to the Commission on or before March 15 of each calendar year a fee in an amount equal to one three-hundredths of 1 per centum of the aggregate dollar amount of the sales of securities registered on a national securities exchange (other than bonds, debentures, and other evidences of indebtedness) transacted by such broker or dealer otherwise than on such an exchange during each preceding calendar year: Provided, however, That no payment shall be required for any calendar year in which such payment would be less than one hundred dollars. The Commission, by rule, may exempt any sale of securities or any class of sales of securities from any fee imposed by this section, if the Commission finds that such exemption is consistent with the public interest, the equal regulation of markets and brokers and dealers, and the development of a national market system.”

1975—Puspan. L. 94–29 amended section generally, extending provisions requiring the payment of fees to include transactions in listed securities which occur in the over-the-counter market.

1944—Act Mar. 17, 1944, amended section generally, inserting provisions exempting from the payment of the fee securities designated for exemption by the Secretary of the Treasury.

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Amendment by section 991(d)(1) of Puspan. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Puspan. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

Puspan. L. 111–203, title IX, § 991(a)(2), July 21, 2010, 124 Stat. 1951, provided that: “The amendments made by this subsection [amending this section] shall take effect on the later of—

“(A)October 1, 2011; or

“(B) the date of enactment of an Act making a regular appropriation to the [Securities and Exchange] Commission for fiscal year 2012 [Div. C of Puspan. L. 112–74, approved Dec. 23, 2011].”

Effective Date of 2002 Amendment

Puspan. L. 107–123, § 11, Jan. 16, 2002, 115 Stat. 2401, provided that:

“(a)In General.—Except as provided in subsections (span) and (c), the amendments made by this Act [see Short Title of 2002 Amendment note set out under section 78a of this title] shall take effect on October 1, 2001.

“(span)Immediate Transaction Fee Reductions.—The amendments made by section 2 [amending this section] shall take effect on the later of—

“(1) the first day of fiscal year 2002; or

“(2) thirty days after the date on which a regular appropriation to the Commission for such fiscal year is enacted.

“(c)Additional Exceptions.—The authorities provided by section 6(span)(9) of the Securities Act of 1933 [15 U.S.C. 77f(span)(9)] and sections 13(e)(9), 14(g)(9), and 31(k) of the Securities Exchange Act of 1934 [15 U.S.C. 78m(e)(9), 78n(g)(9), and 78ee(k)], as so designated by this Act, shall not apply until October 1, 2002.”

Effective Date of 1996 Amendment

Puspan. L. 104–290, title IV, § 405(span), Oct. 11, 1996, 110 Stat. 3443, provided that:

“(1)In general.—Except as provided in paragraph (2), the amendment made by subsection (a) [amending this section] shall apply with respect to transactions in securities that occur on or after October 1, 1997.

“(2)Off-exchange trades of last sale reported transactions.—The amendment made by subsection (a) [amending this section] shall apply with respect to transactions described in section 31(d)(1) of the Securities Exchange Act of 1934 [subsec. (d)(1) of this section] (as amended by subsection (a) of this section) that occur on or after September 1, 1997.”

Effective Date of 1975 Amendment

Amendment by Puspan. L. 94–29 effective Jan. 1, 1976, see section 31(a) of Puspan. L. 94–29, set out as a note under section 78span of this title.

Securities and Exchange Commission Overpayment Credit

Puspan. L. 115–174, title V, § 505, May 24, 2018, 132 Stat. 1362, provided that:

“(a)Definitions.—In this section—

“(1) the term ‘Commission’ means the Securities and Exchange Commission;

“(2) the term ‘national securities association’ means an association that is registered under section 15A of the Securities Exchange Act of 1934 (15 U.S.C. 78o–3); and

“(3) the term ‘national securities exchange’ means an exchange that is registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f).

“(span)Credit for Overpayment of Fees.—Notwithstanding section 31(j) of the Securities Exchange Act of 1934 (15 U.S.C. 78ee(j)), and subject to subsection (c) of this section, if a national securities exchange or a national securities association has paid fees and assessments to the Commission in an amount that is more than the amount that the exchange or association was required to pay under section 31 of the Securities Exchange Act of 1934 (15 U.S.C. 78ee) and, not later than 10 years after the date of such payment, the exchange or association informs the Commission about the payment of such excess amount, the Commission shall offset future fees and assessments due by that exchange or association in an amount that is equal to the difference between the amount that the exchange or association paid and the amount that the exchange or association was required to pay under such section 31.

“(c)Applicability.—Subsection (span) shall apply only to fees and assessments that a national securities exchange or a national securities association was required to pay to the Commission before the date of enactment of this Act [May 24, 2018].”

Budget of the President

Puspan. L. 111–203, title IX, § 991(d)(2), July 21, 2010, 124 Stat. 1954, provided that: “For fiscal year 2012, and each fiscal year thereafter, the annual budget for the Administration submitted by the President to Congress shall reflect the amendments made by this section [amending this section and sections 77f, 78d, 78m, 78n, and 78kk of this title].”

Study of the Effect of Fee Reductions

Puspan. L. 107–123, § 9, Jan. 16, 2002, 115 Stat. 2400, provided that:

“(a)Study.—The Office of Economic Analysis of the Securities and Exchange Commission (hereinafter referred to as the ‘Office’) shall conduct a study of the extent to which the benefits of reductions in fees effected as a result of this Act [see Short Title of 2002 Amendment note set out under section 78a of this title] are passed on to investors.

“(span)Factors for Consideration.—In conducting the study under subsection (a), the Office shall—

“(1) consider the various elements of the securities industry directly and indirectly benefiting from the fee reductions, including purchasers and sellers of securities, members of national securities exchanges, issuers, broker-dealers, underwriters, participants in investment companies, retirement programs, and others;

“(2) consider the impact on different types of investors, such as individual equity holders, individual investment company shareholders, businesses, and other types of investors;

“(3) include in the interpretation of the term ‘investor’ shareholders of entities subject to the fee reductions; and

“(4) consider the economic benefits to investors flowing from the fee reductions to include such factors as market efficiency, expansion of investment opportunities, and enhanced liquidity and capital formation.

“(c)Report to Congress.—Not later than 2 years after the date of the enactment of this Act [Jan. 16, 2002], the Securities and Exchange Commission shall submit to the Congress the report prepared by the Office on the findings of the study conducted under subsection (a).”

Fees From National Securities Associations for Member Transactions Other Than on National Securities Exchanges

Puspan. L. 104–208, div. A, title I, § 101(a) [title V], Sept. 30, 1996, 110 Stat. 3009, 3009–61, provided in part: “That effective January 1, 1997, every national securities association shall pay to the Commission a fee at a rate of one-three-hundredth of one percentum of the aggregate dollar amount of sales transacted by or through any member of such association otherwise than on a national securities exchange (other than bonds, debentures, and other evidences of indebtedness) subject to prompt last sale reporting pursuant to the rules of the Commission or a registered national securities association, excluding any sales for which a fee is paid under section 31 of the Securities Exchange Act of 1934 (15 U.S.C. 78ee), and such increase shall be deposited as an offsetting collection to this appropriation, to remain available until expended, to recover the costs to the Government of the supervision and regulation of securities markets and securities professionals: Provided further, That the fee due from every national securities association shall be paid on or before September 30, 1997, with respect to transactions and sales occurring during the period beginning on January 1, 1997, and ending at the close of August 31, 1997”.

Adjustment of Transaction Fee Rate

By order dated Jan. 26, 2023, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $8.00 per $1,000,000, effective Fespan. 27, 2023, see 88 F.R. 5051.

By order dated Apr. 8, 2022, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $22.90 per $1,000,000, effective May 14, 2022, see 87 F.R. 21931.

By order dated Jan. 15, 2021, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $5.10 per $1,000,000, effective Fespan. 25, 2021, see 86 F.R. 6694.

By order dated Jan. 9, 2020, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $22.10 per $1,000,000, effective Fespan. 18, 2020, see 85 F.R. 2218.

By order dated Mar. 15, 2019, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $20.70 per $1,000,000, effective Apr. 16, 2019, see 84 F.R. 9576.

By order dated Apr. 17, 2018, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $13.00 per $1,000,000, effective May 22, 2018, see 83 F.R. 17577.

By order dated May 31, 2017, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $23.10 per $1,000,000, effective July 4, 2017, see 82 F.R. 25895.

By order dated Jan. 7, 2016, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $21.80 per $1,000,000, effective Fespan. 16, 2016, see 81 F.R. 1458.

By order dated Jan. 15, 2015, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $18.40 per $1,000,000, effective Fespan. 14, 2015, see 80 F.R. 2978.

By order dated Fespan. 12, 2014, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $22.10 per $1,000,000, effective Mar. 18, 2014, see 79 F.R. 9504.

By order dated Apr. 25, 2013, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $17.40 per $1,000,000, effective May 25, 2013, see 78 F.R. 25515.

By order dated Mar. 1, 2012, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $22.40 per $1,000,000, effective Apr. 1, 2012, see 77 F.R. 13663.

By order dated Jan. 20, 2012, the Securities and Exchange Commission adjusted the fee rates applicable under subsecs. (span) and (c) of this section to $18.00 per $1,000,000, effective Fespan. 21, 2012, see 77 F.R. 3818.

Executive Documents

Transfer of Functions

For transfer of functions of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.