New Rate for Fees Paid Under Section 31 of the Exchange Act

New Rate for Fees Paid Under
Section 31 of the Exchange Act
Effective Date: May 22, 2024
Summary
Effective May 22, 2024, the Section 31 fee rate applicable to specified securities transactions on the exchanges and in the over-the-counter markets will increase from its current rate of $8.00 per million dollars in transactions to a new rate of $27.80 per million dollars in transactions. Finance-related questions should be directed to:
X Amanda Rath, Manager, Finance, at (240) 386-6637 or amanda.rath@finra.org. Legal and interpretive questions should be directed to:
X Robert McNamee, Vice President & Associate General Counsel (OGC), at (202) 728-8012 or robert.mcnamee@finra.org; or X Faisal Sheikh, Assistant General Counsel, OGC, at (202) 728-8379 or faisal.sheikh@finra.org. Discussion On April 17, 2024, the Securities and Exchange Commission (SEC) announced in Fee Rate Advisory #2 for Fiscal Year 2024 that, effective May 22, 2024, the Section 31 fee rate applicable to specified securities transactions on the exchanges and in the over-the-counter markets will increase from its current rate of $8.00 per million dollars in transactions to a new rate of $27.80 per million dollars in transactions. Until that date, the current rate of $8.00 per million dollars will remain in effect.1 The assessment on security futures transactions will remain unchanged at $0.0042 for each round turn transaction.
Section 31 of the Exchange Act requires the SEC to annually adjust the
fee rates applicable under Section 31 and, in some circumstances, to make a mid-year adjustment, after consultation with the Congressional Budget Office and the Office of Management and Budget. 1 Information Notice Suggested Routing X Compliance X Legal X Trading Key Topic(s) X Regulatory Transaction Fee X Section 31 Fees Referenced Rules & Notices X Section 3 of Schedule A to the FINRA By-Laws X Section 31 of the Securities Exchange Act of 1934 May 1, 2024

The SEC will issue further notices as appropriate, and the notices will be posted on the SEC’s website at www.sec.gov. FINRA obtains its Section 31 fees from member firms, in accordance with Section 3 of
Schedule A to the By-Laws. Section 3 specifies that the amount assessed on firms will
be determined periodically in accordance with Section 31 of the Exchange Act. 2 Information Notice May 1, 2024

1. For purposes of FINRA calculations, the “charge
   date” is the trade date, not the settlement date.
   See 17 CFR 240.31(a)(3). Thus, the new rate will apply to applicable covered sales in the over￾the-counter market with a trade date of May 22, 2024, orlater. Endnotes Information Notice 3 May 1, 2024 ©2024. FINRA. All rights reserved. Regulatory Notices attempt to present information to readers in a format that is easily understandable. However, please be aware that, in case of any misunderstanding, the rule language prevails.