Transaction fee increase http://www.sec.gov/news/press/2009/2009-....

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Fee Rate Advisory #3 for Fiscal Year 2009
FOR IMMEDIATE RELEASE
2009-41

Washington, D.C., March 4, 2009 — Effective on April 1, 2009, or 30 days after the date of enactment of the Commission's regular appropriation for FY 2009, whichever is later, the Section 31 fee rate applicable to securities transactions on the exchanges and over-the-counter markets will increase to $25.70 per million dollars. Until that date, the current rate of $5.60 per million dollars will remain in effect. The Section 31 assessment on security futures transactions will remain unchanged at $0.0042 per round turn transaction.

A copy of the Commission's Feb. 27, 2009, order regarding the mid-year fee adjustment for fiscal year 2009 is available at http://www.sec.gov/rules/other/2009/34-5.... As explained more fully in the order, the Commission is required to adjust the Section 31 fee rate based on the estimated dollar volume of securities sales for FY 2009. The Commission consulted with the Congressional Budget Office and the Office of Management and Budget regarding the calculation of the mid-year adjustment, as required by Section 31(j)(2) of the Act. The Commission's calculation methodology is described in the order.

Section 31(k) of the Act requires the Commission to continue to collect transaction fees at the previous year's rate until 30 days after the date of enactment of the Commission's regular appropriation for FY 2009. The Commission will publish the effective date of the new rate announced today once the Commission's regular appropriation for FY 2009 is enacted.

The Office of Interpretation and Guidance in the Commission's Division of Trading and Markets is also available for questions on Section 31 fees at (202) 551-5777, or by e-mail at tradingandmarkets@sec.gov.

The Commission will announce the FY 2010 rates for fees paid under Section 6(b) of the Securities Act of 1933 and Sections 13(e), 14(g), and 31 of the Securities Exchange Act of 1934 no later than April 30, 2009. Those rates will become effective on Oct. 1, 2009, or after the date of enactment of the Commission's regular appropriation for FY 2010, whichever comes later.

All the money will be donated to Madoff :)

How big of a component is this in the average stock trade? i.e. how much are my fees going up?

And so it begins, the start of the nuisance taxes that will finally kill the producers so that leech****s and government can be supported. **** you Washington.

**** you Washington sums it up.

I am glad that the transaction fee increases are not just for the evil short sellers :-)

But, don't they need these Fees (taxes) to support the good work of the SEC?.........................................................

Guys, YOU need to take this issue VERY seriously.

Just do the math.

Add 1/2% to every trade in terms of cost, or less profit. Think about it from a market makers perspective: Instead of offering a penny spread in the market, the dealer will have to offer at a price which allows him to pay TWO taxes on every round trip. We're very quickly back to the world of eigth's and quater's..... You will not be able to buy things at a penny spread and then, if you are wrong, get out for a few cents. You're hooked on bad longs; and need to have an extended run to make money on 'good' longs. Ditto for shorts!

If you are a day trader, or even a swing trader, you are out of business with this new tax plan!

FUUUUUUUUCCCCCKKKKK YOOOOOOOUUUUU!!!!

In about 2-3 months I won't trade at all, ever. I'm getting out after my current batch of puts either go 'poof' or make me a profit.

Screw it.

Is this for real? April 1st. I'm sure that might be behind some of this selloff and I bet will continue thru April 1st.

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futures transactions will remain unchanged at $0.0042 per round turn transaction.

Guess I know how I'll be trading...

I'm going to pen another fax so my congress critters can ignore it... I say **** .Gov, but more importantly **** THE SEC!

If they weren't already on my list of incompetent *******s that need to be lock into portable toilets and set on fire they would be now....

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In about 2-3 months I won't trade at all, ever

I may not be far behind you. **** this! If it's not one thing it's another.

Everytime the government adds a fee or tax to an activity in my life I will do my best not to engage in that activity any more.

for a $10k transaction it will now cost 25.7 cents, up from 5.6 cents.
I bet none of you even noticed the 5.6 cents being taken out.

Not trying to troll here but is there some other country to trade in that would less annoying?

Brett, that's not the point. The point is that the SEC is a bunch of incompetent ****s that can't find their own ass with a map and a compass.

How about they actually start investigating and prosecuting? If it wasn't for Madoff's son they would have never caught him. His clients and peers knew he was crooked and he didn't make a trade for over 10 years and the SEC didn't catch him.

What the **** do you have to do to get arrested for securities fraud????

Oh and will I notice? My trade commissions last year to TOS were over $25k... I'm pretty active so I willing to bet I notice...

Will this hit the ETF`s that track daily performance more than stocks? TIA

A 500% "hidden" tax increase!!!!!! Now that is a tax increase you can believe in and certainly represents change. These will become common place with this administration. Socialists only know how to spend and tax.

This on top of the capital gains increases that are imminent under the Obama administration there will be a lot fewer people trading taking into account risk vs. reward in this ****e market.

Trading Tax Would 'Decimate' Markets, NYSE's Niederauer Says
2009-03-04 18:09:18.326 GMT


By Edgar Ortega
March 4 (Bloomberg) -- The proposed tax increase on stocks and derivatives trading that is intended to help pay for the Wall Street bailout would have a "severe impact" on investors, NYSE Euronext Chief Executive Officer Duncan Niederauer said.
"It would decimate liquidity in the market in an unprecedented way," he said late yesterday at the Museum of American Finance in New York. "That would be about the worst thing that could happen, but I don't believe it will get any traction."
Representative Peter DeFazio, an Oregon Democrat, introduced legislation last month that would require exchanges to collect a tax equal to 0.25 percent of a trade's value. The proposal, backed by seven other Democratic representatives, could raise $150 billion a year to mitigate the costs of the U.S. Treasury's rescue plan for banks and brokerages, according to the Feb. 13 draft of the legislation.
Brokerages currently pay $9.30 for every $1 million traded in stocks and options, and less than half a cent for the purchase and sale of future contracts. The money helps fund the U.S.
Securities and Exchange Commission.
Molly Simmons, a spokeswoman for DeFazio, didn't immediately return a telephone message seeking comment. None of the sponsors of the proposal are members of the House Ways and Means Committee, which would be responsible for the legislation.
The Security Traders Association, a 75-year-old New York- based group representing investors and brokerages, said last month that the tax may exacerbate the financial crisis by undermining markets. While credit markets seized up last year as more borrowers fell behind on their debt payments, trading on equity, options and futures exchanges spiked to records because investors adjusted their holdings to stem losses.
"It's effectively trying to punish someone for breaking curfew by burning down the neighborhood," said William O'Brien, chief executive officer of Direct Edge Holdings LLC, the fourth- largest U.S. equity market by shares traded. "There is not even a causal connection between the trading firms that would pay the lion's share of this tax and the underlying sources of the issues we are facing."

>>In about 2-3 months I won't trade at all, ever. I'm getting out after my current batch of puts either go 'poof' or make me a profit.

Emb, same here. I have a bunch of high PE straight shorts that haven't tanked yet (if they're going to), and once those are cleaned up I'm out. Flat. Done.

Even though I'm small time I refuse to support the idiots in the gov't with one penny more in taxes than I'm currently paying, be it sales tax, income tax, etc.

It's time to go Galt.

LQ

I don't get it, is this proposed or is it a done deal? Again, punishing all investors for the sake of bailing out a few bad banks... they will sell it as "let WallStreet pay for their own bailouts" but the reality is that it hits the individual's 401k earnings, mutual funds, etc. Brilliant!

bilge

I believe it's proposed in the new omnibus spending bill just passed in the House; not yet voted on in the Senate.

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nuisance taxes that will finally kill the producers

Producers?

The congressional critters gotta keep the Fraud Street bonuses rolling in somehow, they're just churning the trade like the "investment" professionals have been years...

P.S. Get ready for tax increases EVERYWHERE, it's inevitable given the borrow & spend insanity that's taken over the USofA in the last decade