§ 78ee. — Transaction fees.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC78ee]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2B--SECURITIES EXCHANGES
Sec. 78ee. Transaction fees
(a) Recovery of cost of services
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.
(b) Exchange-traded securities
Subject to subsection (j) of this section, each national securities
exchange shall pay to the Commission a fee at a rate equal to $15 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.
(c) Off-exchange trades of exchange registered and last-sale-reported
securities
Subject to subsection (j) of this section, each national securities
association shall pay to the Commission a fee at a rate equal to $15 per
$1,000,000 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 (other than bonds, debentures, other
evidences of indebtedness, security futures products, and options on
securities indexes (excluding a narrow-based security index)) registered
on a national securities exchange or subject to prompt last sale
reporting pursuant to the rules of the Commission or a registered
national securities association.
(d) Assessments on security futures transactions
Each national securities exchange and national securities
association shall pay to the Commission an assessment equal to $0.009
for each round turn transaction (treated as including one purchase and
one sale of a contract of sale for future delivery) on a security future
traded on such national securities exchange or by or through any member
of such association otherwise than on a national securities exchange,
except that for fiscal year 2007 and each succeeding fiscal year such
assessment shall be equal to $0.0042 for each such transaction.
(e) Dates for payments
The fees and assessments required by subsections (b), (c), and (d)
of this section shall be paid--
(1) on or before March 15, with respect to transactions and
sales occurring during the period beginning on the preceding
September 1 and ending at the close of the preceding December 31;
and
(2) on or before September 30, with respect to transactions and
sales occurring during the period beginning on the preceding January
1 and ending at the close of the preceding August 31.
(f) Exemptions
The Commission, by rule, may exempt any sale of securities or any
class of sales of securities from any fee or assessment 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.
(g) Publication
The Commission shall publish in the Federal Register notices of the
fee and assessment rates applicable under this section for each fiscal
year 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.
(h) Pro rata application
The rates per $1,000,000 required by this section shall be applied
pro rata to amounts and balances of less than $1,000,000.
(i) Deposit of fees
(1) Offsetting collections
Fees collected pursuant to subsections (b), (c), and (d) of this
section for any fiscal year--
(A) shall be deposited and credited as offsetting
collections to the account providing appropriations to the
Commission; and
(B) except as provided in subsection (k) of this section,
shall not be collected for any fiscal year except to the extent
provided in advance in appropriation Acts.
(2) General revenues prohibited
No fees collected pursuant to subsections (b), (c), and (d) of
this section for fiscal year 2002 or any succeeding fiscal year
shall be deposited and credited as general revenue of the Treasury.
(j) Recapture of projection windfalls for further rate reductions
(1) Annual adjustment
For each of the fiscal years 2003 through 2011, the Commission
shall by order adjust each of the rates applicable under subsections
(b) and (c) of this section for such fiscal year to a uniform
adjusted rate that, when applied to the baseline estimate of the
aggregate dollar amount of sales for such fiscal year, is reasonably
likely to produce aggregate fee collections under this section
(including assessments collected under subsection (d) of this
section) that are equal to the target offsetting collection amount
for such fiscal year.
(2) Mid-year adjustment
For each of the fiscal years 2002 through 2011, the Commission
shall determine, by March 1 of such fiscal year, whether, based on
the actual aggregate dollar volume of sales during the first 5
months of such fiscal year, the baseline estimate of the aggregate
dollar volume of sales used under paragraph (1) for such fiscal year
(or $48,800,000,000,000 in the case of fiscal year 2002) is
reasonably likely to be 10 percent (or more) greater or less than
the actual aggregate dollar volume of sales for such fiscal year. If
the Commission so determines, the Commission shall by order, no
later than such March 1, adjust each of the rates applicable under
subsections (b) and (c) of this section for such fiscal year to a
uniform adjusted rate that, when applied to the revised estimate of
the aggregate dollar amount of sales for the remainder of such
fiscal year, is reasonably likely to produce aggregate fee
collections under this section (including fees collected during such
5-month period and assessments collected under subsection (d) of
this section) that are equal to the target offsetting collection
amount for such fiscal year. In making such revised estimate, the
Commission shall, after consultation with the Congressional Budget
Office and the Office of Management and Budget, use the same
methodology required by subsection (l)(2) of this section.
(3) Final rate adjustment
For fiscal year 2012 and all of the succeeding fiscal years, the
Commission shall by order adjust each of the rates applicable under
subsections (b) and (c) of this section for all of such fiscal years
to a uniform adjusted rate that, when applied to the baseline
estimate of the aggregate dollar amount of sales for fiscal year
2012, is reasonably likely to produce aggregate fee collections
under this section in fiscal year 2012 (including assessments
collected under subsection (d) of this section) equal to the target
offsetting collection amount for fiscal year 2011.
(4) Review and effective date
In exercising its authority under this subsection, the
Commission shall not be required to comply with the provisions of
section 553 of title 5. An adjusted rate prescribed under paragraph
(1), (2), or (3) and published under subsection (g) of this section
shall not be subject to judicial review. Subject to subsections
(i)(1)(B) and (k) of this section--
(A) an adjusted rate prescribed under paragraph (1) shall
take effect on the later of--
(i) the first day of the fiscal year to which such rate
applies; or
(ii) thirty days after the date on which a regular
appropriation to the Commission for such fiscal year is
enacted;
(B) an adjusted rate prescribed under paragraph (2) shall
take effect on April 1 of the fiscal year to which such rate
applies; and
(C) an adjusted rate prescribed under paragraph (3) shall
take effect on the later of--
(i) the first day of fiscal year 2012; or
(ii) thirty days after the date on which a regular
appropriation to the Commission for fiscal year 2012 is
enacted.
(k) Lapse of appropriation
If on the first day of a fiscal year a regular appropriation to the
Commission has not been enacted, the Commission shall continue to
collect (as offsetting collections) the fees and assessments under
subsections (b), (c), and (d) of this section at the rate in effect
during the preceding fiscal year, until 30 days after the date such a
regular appropriation is enacted.
(l) Definitions
For purposes of this section:
(1) Target offsetting collection amount
The target offsetting collection amount for each of the fiscal
years 2002 through 2011 is determined according to the following
table:
Target offsetting
Fiscal year: collection amount
2002.................................. $732,000,000
2003.................................. $849,000,000
2004.................................. $1,028,000,000
2005.................................. $1,220,000,000
2006.................................. $1,435,000,000
2007.................................. $881,000,000
2008.................................. $892,000,000
2009.................................. $1,023,000,000
2010.................................. $1,161,000,000
2011.................................. $1,321,000,000
(2) Baseline estimate of the aggregate dollar amount of
sales
The baseline estimate of the aggregate dollar amount of sales
for any fiscal year is the baseline estimate 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)) to be
transacted on each national securities exchange and by or through
any member of each national securities association (otherwise than
on a national securities exchange) during such fiscal year as
determined by the Commission, after consultation with the
Congressional Budget Office and the Office of Management and Budget,
using the methodology required for making projections pursuant to
section 907 of title 2.
(June 6, 1934, ch. 404, title I, Sec. 31, 48 Stat. 904; Mar. 17, 1944,
ch. 101, 58 Stat. 117; Pub. L. 94-29, Sec. 22, June 4, 1975, 89 Stat.
162; Pub. L. 104-290, title IV, Sec. 405(a), Oct. 11, 1996, 110 Stat.
3442; Pub. L. 105-353, title III, Sec. 301(b)(14), Nov. 3, 1998, 112
Stat. 3236; Pub. L. 106-554, Sec. 1(a)(5) [title II, Sec. 206(f)], Dec.
21, 2000, 114 Stat. 2763, 2763A-432; Pub. L. 107-123, Secs. 2, 3, Jan.
16, 2002, 115 Stat. 2390.)
Amendments
2002--Subsec. (b). Pub. L. 107-123, Sec. 3(a)(1), substituted
``Subject to subsection (j) of this section, 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.''
Pub. L. 107-123, Sec. 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). Pub. L. 107-123, Sec. 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. heading, struck out par. (1) heading,
substituted ``Subject to subsection (j) of this section, 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.
Pub. L. 107-123, Sec. 3(a)(2), struck out heading 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.''
Pub. L. 107-123, Sec. 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 Pub. L.
107-123, Sec. 3(a)(3), which redesignated subsec. (d) as (c). See above.
Subsec. (d). Pub. L. 107-123, Sec. 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).
Pub. L. 107-123, Sec. 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 Pub. L. 107-123, Sec. 3(a)(4), (6) which
redesignated subsec. (e) as (d). See above.
Subsec. (e). Pub. L. 107-123, Sec. 3(a)(5), (6), redesignated
subsec. (f) as (e) and substituted ``Dates for payments'' for ``Dates
for payment of fees'' in heading and ``The fees and assessments
required'' for ``The fees required'' in introductory provisions. Former
subsec. (e) redesignated (d).
Subsec. (f). Pub. L. 107-123, Sec. 3(a)(6), redesignated subsec. (g)
as (f). Former subsec. (f) redesignated (e).
Subsec. (g). Pub. L. 107-123, Sec. 3(a)(6), (b)(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). Pub. L. 107-123, Sec. 3(a)(6), redesignated subsec.
(i), as enacted by Pub. L. 107-123, Sec. 2(6), as (h). See below. Former
subsec. (h) redesignated (g).
Subsec. (i). Pub. L. 107-123, Sec. 3(a)(7), added subsec. (i).
Pub. L. 107-123, Sec. 2(6), added subsec. (i).
Subsecs. (j) to (l). Pub. L. 107-123, Sec. 3(b)(1), added subsecs.
(j) to (l).
2000--Subsec. (a). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 206(f)(1)], inserted ``and assessments'' after ``fees''.
Subsecs. (b), (c), (d)(1). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 206(f)(2)], substituted ``other evidences of indebtedness, and
security futures products'' for ``and other evidences of indebtedness''.
Subsec. (e). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 206(f)(6)], added subsec. (e). Former subsec. (e) redesignated (f).
Subsec. (f). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 206(f)(5)], redesignated subsec. (e) as (f). Former subsec. (f)
redesignated (g).
Pub. L. 106-554, Sec. 1(a)(5) [title II, Sec. 206(f)(3)], inserted
``or assessment'' after ``fee''.
Subsec. (g). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 206(f)(5)], redesignated subsec. (f) as (g). Former subsec. (g)
redesignated (h).
Pub. L. 106-554, Sec. 1(a)(5) [title II, Sec. 206(f)(4)], inserted
``and assessment'' after ``fee''.
Subsec. (h). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 206(f)(5)], redesignated subsec. (g) as (h).
1998--Subsec. (a). Pub. L. 105-353 substituted ``this section'' for
``this subsection''.
1996--Pub. 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--Pub. 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.
Effective Date of 2002 Amendment
Pub. L. 107-123, Sec. 11, Jan. 16, 2002, 115 Stat. 2401, provided
that:
``(a) In General.--Except as provided in subsections (b) 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.
``(b) 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(b)(9) of the Securities Act of 1933 [15 U.S.C. 77f(b)(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
Section 405(b) of Pub. L. 104-290 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 Pub. L. 94-29 effective Jan. 1, 1976, see section 31(a)
of Pub. L. 94-29, set out as a note under section 78b of this title.
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, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out under section 78d of this title.
Study of the Effect of Fee Reductions
Pub. L. 107-123, Sec. 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.
``(b) 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
Pub. L. 104-208, div. A, title I, Sec. 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''.
