STA Applauds Reduction in Section 31 Fees

Download PDF

28 November 2006

Demonstrates Value of Cooperative Effort with Legislators and Regulators

(New York: February 15, 2007) The Security Traders Association (STA), the leading advocacy and education organization for professional equity traders in the U.S., today applauds the reduction in Section 31fees, which are collected on equity trades from the securities industry to fund the Securities and
Exchange Commission (SEC).

The STA worked with the Congress to help pass in 2002 The Investor and Capital Markets Fee Relief Act, which projected a reduction in the fee structure and provided increased pay to SEC employees. In May 2006, the Commission announced a reduction in the transaction fees by an estimated 50%, to be implemented after the Congress passed an appropriations bill to fund the SEC. The Continuing Resolution that was passed by the Congress yesterday includes a provision to allow the reduced Section
31 fee rate to take effect 30 days after the President signs the bill.

Commenting on the reduction, John Giesea, STA President and CEO, said: “Today’s reduction reflects the positive results that occur when industry, legislators, and regulators come together to forge workable solutions to often contentious and complex problems. We are pleased that our efforts on behalf of our
members resulted in this significant reduction. We look forward to continued good faith relations with both the Congress and the Commission on other important initiatives that affect investors, issuers, and our constituency.”

About The STA

The STA is a worldwide professional trade organization that works to improve the ethics, business standards and working environment for our members. There are approximately 6,000 members, all engaged in the buying, selling, and trading of securities. Members participate in STA through 28 national and international affiliate organizations and represent the interests of the trading community and institutional investors. The STA provides a forum for our traders, representing institutions, broker-dealers, ECNs, and floor brokers to share their unique perspectives on issues facing the securities markets. They work together to promote their shared interest in efficient, liquid markets as well as in investor protection.