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  • 04-01 NASD Provides Additional Information Regarding Options Exemption for the Trading Activity Fee

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    INFORMATIONAL

    Options Exemption


    SUGGESTED ROUTING

    KEY TOPICS

    Legal and Compliance
    Operations Managers
    Senior Management
    Options Exemption
    Trading Activity Fee

    Executive Summary

    On May 30, 2003, the Securities and Exchange Commission (SEC or Commission) permanently approved revisions to NASD By-Laws, eliminating the current Regulatory Fee assessed upon NASD members and instituting a new transaction-based Trading Activity Fee (TAF).1 As part of the permanent fee structure, listed options transactions executed by broker/dealers for which NASD is not the primary regulator were exempted from the TAF, effective January 1, 2004. A listing of those broker/dealers exempt from the fee is attached.

    Questions/Further Information

    Questions regarding this Notice should be directed to NASD Finance at (240) 386-5397, or the Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8071.

    Discussion

    The SEC approved the TAF on a permanent basis on May 30, 2003, whereby listed options transactions executed by broker/dealers for which NASD is not the primary regulator were exempted from the fee, effective January 1, 2004. Listed option transactions will be subject to the TAF only if NASD is that member firm's Designated Options Examining Authority (DOEA). A listing of those firms who are not designated to NASD who are exempt from the fee appear in Attachment A. As changes are required, a revised listing will be published through further Notices to Members.


    1 Securities Exchange Act Rel. No. 47946 (May 30, 2003).


    Attachment A

    2004 DOEA Allocations - Firms not Designated to NASD

    Firm ID SEC 8-Number MPID Firm Name City State
    1101 8-00719 ABLE NATEXIS BLEICHROEDER INC. NEW YORK NY
    10 8-21409 ADVS ADVEST, INC. HARTFORD CT
    38702 8-48368 AKJI AKJ NASSAU  
    42410 8-49831 ALDO ALLEN DOUGLAS SECURITIES, INC. WINTER PARK FL
    7809 8-23204 ALEX J. ALEXANDER SECURITIES, INC. LOS ANGELES CA
    48 8-18206 ANSR ANDERSON & STRUDWICK, INCORPORATED RICHMOND VA
    44656 8-50764 ARCD ARCADIA SECURITIES, LLC NEW YORK NY
    7381 8-21459 ASCO EDELMAN SECURITIES COMPANY, L.P. NEW YORK NY
    12969 8-28568 ASED ASSOCIATED SECURITIES CORP. LOS ANGELES CA
    28269 8-43559 ASEL TRADITION ASIEL SECURITIES INC. NEW YORK NY
    108887 8-53088 ATGP AGENCY TRADING GROUP, INC. WAYZATA MN
    103768 8-52261 AUTO AUTOMATED TRADING DESK FINANCIAL SERVICES, LLC MT. PLEASANT SC
    38913 8-48462 BANF BANIF SECURITIES, INC. NEW YORK NY
    104487   BBHC BROWN BROTHERS HARIMAN NEW YORK NY
    6255 8-01361 BBNT SCOTT & STRINGFELLOW, INC. RICHMOND VA
    5835 8-16555 BCOM BAKER & CO., INCORPORATED CLEVELAND OH
    104474 8-52942 BERN SANFORD C. BERNSTEIN & CO., LLC NEW YORK NY
    79 8-35008 BEST BEAR, STEARNS & CO. INC. NEW YORK NY
    14285 8-30453 BHCS FISERV SECURITIES, INC. PHILADELPHIA PA
    10215 8-26656 BIDW BIDWELL & COMPANY PORTLAND OR
    1248 8-12140 BISH BISHOP, ROSEN & CO., INC. NEW YORK NY
    13071 8-23522 BKBS FLEET SECURITIES, INC. NEW YORK NY
    23407 8-40413 BKRT BUCKMAN, BUCKMAN & REID, INC. RED BANK NJ
    14667 8-31032 BKST BROOKSTREET SECURITIES CORPORATION IRVINE CA
    31394 8-44765 BNPS BNP PARIBAS BROKERAGE SERVICES, INC. KING OF PRUSSIA PA
    15879 8-32874 BNYC BNY CLEARING SERVICES LLC MILWAUKEE WI
    23065 8-40208 BOCM BANC ONE CAPITAL MARKETS, INC. CHICAGO IL
    26091 8-42263 BOFA BANC OF AMERICA SECURITIES LLC CHARLOTTE NC
    6822 8-38286 BRDG BRIDGE TRADING COMPANY ST. LOUIS MO
    104065 8-52538 BRGE NEWBRIDGE SECURITIES CORPORATION FT. LAUDERDALE FL
    22062 8-39382 BRUS HD BROUS & CO., INC. GREAT NECK NY
    28432 8-43724 BSSC BEAR, STEARNS SECURITIES CORP. BROOKLYN NY
    41262 8-49343 BTRD B-TRADE SERVICES LLC NEW YORK NY
    28042 8-43400 BULA BULLARO SECURITIES CORP. ASTORIA NY
    118812 8-53687 BWNC STC SECURITIES CORPORATION FT. LAUDERDALE FL
    134 8-00201 CANT CANTOR FITZGERALD & CO. NEW YORK NY
    5393 8-16514 CHAS CHARLES SCHWAB & CO., INC. SAN FRANCISCO CA
    15776 8-32746 CHGO ABN AMRO INCORPORATED CHICAGO IL
    27829 8-42750 CHIL CHILIAN PARTNERS, L.P. WEST PALM BEACH FL
    630 8-18333 CIBC CIBC WORLD MARKETS CORP. NEW YORK NY
    10141 8-27045 CLGL C. L. GLAZER & COMPANY, INC. GREENWICH CT
    31295 8-40963 CLYN CARLIN EQUITIES CORP. NEW YORK NY
    7616 8-22522 COWN SG COWEN SECURITIES CORPORATION NEW YORK NY
    41400 8-49400 CPST CAPSTONE INVESTMENTS SAN DIEGO CA
    120767 8-65343 CRTW CURTISWOOD CAPITAL, LLC NASHVILLE TN
    24771 8-41389 CWEI CANTOR, WEISS & FRIEDNER, INC. NEW YORK NY
    44523 8-50739 CYBR CYBERTRADER, INC. AUSTIN TX
    113591 8-53331 DANN KEVIN DANN & PARTNERS, LLC NEW YORK NY
    1588 8-17103 DAVA DAVENPORT & COMPANY LLC RICHMOND VA
    1576 8-12242 DAWA DAIWA SECURITIES AMERICA INC. NEW YORK NY
    2525 8-17822 DBKS DEUTSCHE BANK SECURITIES INC. NEW YORK NY
    118212 8-53650 DIVA DIVINE CAPITAL MARKETS LLC NEW YORK NY
    222 8-12676 DIVP DIVERSIFIED SECURITIES, INCORPORATED LONG BEACH CA
    42159 8-49730 DLJD HARRIS INVESTOR SERVICES LLC JERSEY CITY NJ
    7560 8-17574 DLJP PERSHING LLC JERSEY CITY NJ
    1660 8-10048 DOFT DOFT & CO., INC. NEW YORK NY
    41957 8-49647 DRKW DRESDNER KLEINWORT WASSERSTEIN SECURITIES LLC NEW YORK NY
    35693 8-46838 ECUT BNY BROKERAGE INC. NEW YORK NY
    6731 8-18104 EDFM MAN SECURITIES INC CHICAGO IL
    42071 8-49684 EDGE EDGETRADE.COM, INC. NEW YORK NY
    47584 8-51820 EGSB ELECTRONIC GLOBAL SECURITIES, INC. NEW YORK NY
    3429 8-36808 EHSJ E. H. SMITH JACOBS & CO., INC. NEW YORK NY
    37453 8-47754 ELEC ELECTRONIC TRADING GROUP, LLC NEW YORK NY
    104038 8-52502 EQTY EQUITY TRADING ONLINE, LLC NEW YORK NY
    25025 8-41354 ETRS E*TRADE CLEARING LLC NEW YORK NY
    298 8-02018 FACT FIRST ALBANY CAPITAL INC. ALBANY NY
    1781 8-09952 FAGI FAGENSON & CO., INC. NEW YORK NY
    816 8-00422 FBCO CREDIT SUISSE FIRST BOSTON LLC NEW YORK NY
    17344 8-35158 FCCP FIRST CLEARING, LLC GLEN ALLEN VA
    7784 8-23292 FIBS FIDELITY BROKERAGE SERVICES LLC BOSTON MA
    39473 8-48711 FILL TRADESTATION SECURITIES, INC. PLANTATION FL
    3023 8-17615 FLGR PFLUEGER & BAERWALD INC. SAN FRANCISCO CA
    41392 8-49398 FLNK FINANCIAL LINKS, INC. RALEIGH NC
    36118 8-47023 FMAT FIMAT USA, INC. NEW YORK NY
    16362 8-33753 FNYS FIRST NEW YORK SECURITIES L.L.C. NEW YORK NY
    13822 8-23787 FOCC FIRST OPTIONS OF CHICAGO INC. CHICAGO IL
    5633 8-16335 FOMA AMERITRADE, INC. OMAHA NE
    20375 8-38287 FONE F1 TRADING.COM, INC. MINEOLA NY
    6703 8-18028 FOUR THE FOURTEEN RESEARCH CORPORATION NEW YORK NY
    316 8-01523 FSWC FIRST SOUTHWEST COMPANY DALLAS TX
    6681 8-17974 FWCO FIRST WASHINGTON CORPORATION SEATTLE WA
    48029 8-52010 GBSC GOLDEN BENEFICIAL SECURITIES HOUSTON TX
    16686 8-34344 GKMC HARRIS NESBITT GERARD, INC. NEW YORK NY
    104281 8-52780 GLBZ ONLINE BROKERAGE SERVICES WATERVILLE OH
    361 8-00129 GSCO GOLDMAN, SACHS & CO. NEW YORK NY
    396 8-17737 HAZL HAZLETT, BURT & WATSON, INC. WHEELING WV
    453 8-33133 HDLY J.J.B. HILLIARD, W.L. LYONS, INC. LOUISVILLE KY
    6193 8-17005 HERO BERNARD HEROLD & CO., INC. NEW YORK NY
    33725 8-34415 IAEC ISRAEL ENGLANDER NEW YORK NY
    36418 8-47257 IBKR INTERACTIVE BROKERS LLC GREENWICH CT
    7897 8-23669 ICLS INSTINET CLEARING SERVICES, INC. NEW YORK NY
    37401 8-47724 ICTI INTERNATIONAL CORRESPONDENT TRADING, INC. JERSEY CITY NJ
    124245 8-65649 INDX INDEX SECURITIES, LLC SAN CLEMENTE CA
    2288 8-01865 INGS INGALLS & SNYDER, LLC NEW YORK NY
    104236 8-52704 INTG INTEGRITY TRADING, INC. KIRKLAND WA
    39295 8-48614 INVST INVESTIN SECURITIES CORP. DALLAS TX
    20746 8-38430 ISLD THE ISLAND ECN NEW YORK NY
    14343 8-30593 JBOC NATIONAL CLEARING CORP. BEVERLY HILLS CA
    2347 8-15074 JEFF JEFFERIES & COMPANY, INC. LOS ANGELES CA
    43571 8-50317 JIMK SUNSTATE EQUITY TRADING TAMPA FL
    473 8-17530 JOLE JOHNSTON, LEMON & CO. INCORPORATED WASHINGTON DC
    6888 8-26089 JONE JONES & ASSOCIATES, INC. WESTLAKE VILLAGE CA
    24907 8-41225 JRPS DIRECT BROKERAGE, INC. NEW YORK NY
    104041 8-52509 KBAD ADIRONDACK ELECTRONIC MARKETS LLC NEW YORK NY
    7720 8-23135 KBCO KAHN BROTHERS & CO. INC. NEW YORK NY
    2440 8-13028 KIML KIMELMAN & BAIRD, LLC NEW YORK NY
    113326 8-53312 KKSS HEDGE FUND CAPITAL PARTNERS, LLC NEW YORK NY
    42093 8-49698 KVXS KV EXECUTION SERVICES LLC NEW YORK NY
    2498 8-25581 LAFF R. F. LAFFERTY & CO., INC. NEW YORK NY
    7506 8-12324 LEHM LEHMAN BROTHERS INC. NEW YORK NY
    104021 8-52511 LETS CHOICETRADE EAST BRUNSWICK NJ
    34048 8-46201 LEXT LEXIT CAPITAL, LLC HOBOKEN NJ
    117176 8-53595 LGNT LEGENT CLEARING CORP. OMAHA NE
    104369 8-52843 LIME LIME BROKERAGE LLC NEW YORK NY
    29500 8-44351 LMAN B. LATERMAN & CO., INC. NEW YORK NY
    10929 8-28004 LOEB LOEB PARTNERS CORPORATION NEW YORK NY
    33135 8-42152 LSCI LEK SECURITIES CORPORATION NEW YORK NY
    505 8-17230 LTCO LADENBURG, THALMANN & CO., INC. NEW YORK NY
    2625 8-08132 MADF BERNARD L. MADOFF INVESTMENT SECURITIES LLC NEW YORK NY
    103680 8-52194 MDAS MIDAS SECURITIES, LLC BUENA PARK CA
    42677 8-49951 MDBC MDB CAPITAL GROUP LLC SANTA MONICA CA
    566 8-30177 MDLD MCDONALD INVESTMENTS INC. CLEVELAND OH
    30080 8-44733 MDON MCDONNELL, INC. CHICAGO IL
    21520 8-41415 MDWD MIDWOOD SECURITIES, INC. NEW YORK NY
    18296 8-36420 MERI MERRIMAN CURHAN FORD & CO. SAN FRANCISCO CA
    117476 8-53596 MFML MAKO FINANCIAL MARKETS, LLC NEW YORK NY
    40096 8-48960 MFXG MAXIMUM FINANCIAL INVESTMENT GROUP, INC. TROY MI
    7691 8-07221 MLCO MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED NEW YORK NY
    47815 8-51911 MNRC MONARCH CAPITAL GROUP, LLC NEW YORK NY
    4161 8-15001 MOKE MORGAN KEEGAN & COMPANY, INC. MEMPHIS TN
    36000 8-46998 MPBS AUTOMATED TRADING DESK BROKERAGE SERVICES, LLC MT. PLEASANT SC
    2764 8-28816 MSRO MESIROW FINANCIAL, INC. CHICAGO IL
    47293 8-51750 MTCO MILLER TABAK NEW YORK NY
    47485 8-51825 MTRN MULTITRADE SECURITIES LLC NEW YORK NY
    119625 8-65216 MWRE FTN MIDWEST RESEARCH SECURITIES CORP CLEVELAND OH
    7299 8-13978 NBSI HARRIS NESBITT CORP. CHICAGO IL
    39940 8-48905 NDXT NDX TRADING, INC. MINNEAPOLIS MN
    25843 8-42352 NEAL KING FINANCIAL SERVICES, INC. OLD BRIDGE NJ
    16360 8-33772 NEED NEEDHAM & COMPANY, INC. NEW YORK NY
    2908 8-01068 NEUB NEUBERGER BERMAN, LLC NEW YORK NY
    13041 8-26740 NFSC NATIONAL FINANCIAL SERVICES LLC BOSTON MA
    39410 8-48696 NISC NATIONAL INVESTOR SERVICES CORP. NEW YORK NY
    4297 8-15255 NMRA NOMURA SECURITIES INTERNATIONAL, INC. NEW YORK NY
    18975 8-37105 NTMG NUTMEG SECURITIES, LTD. FAIRFIELD CT
    104012 8-52473 NWMK NEWMARK SECURITIES LTD. TYLER TX
    103843 8-52326 NYFX NYFIX MILLENNIUM, L.L.C. NEW YORK NY
    2091 8-22371 OGRU OSCAR GRUSS & SON, INCORPORATED NEW YORK NY
    5979 8-16752 OLDE H&R BLOCK FINANCIAL ADVISORS, INC. DETROIT MI
    36816 8-47474 ONLI HOLD BROTHERS ON-LINE INVESTMENT SERVICES L.L.C. JERSEY CITY NJ
    25816 8-43168 OTAA OTA LLC PURCHASE NY
    103849 8-52354 OXPS OPTIONSXPRESS CHICAGO IL
    117783 8-53605 PALC PALI CAPITAL, INC. NEW YORK NY
    25866 8-42095 PFSI PENSON FINANCIAL SERVICES, INC. DALLAS TX
    10993 8-27945 PFTC PREFERREDTRADE, INC. SAN FRANCISCO CA
    665 8-15204 PIPR U.S. BANCORP PIPER JAFFRAY INC. MINNEAPOLIS MN
    16139 8-33359 PRST MERRILL LYNCH PROFESSIONAL CLEARING CORP. NEW YORK NY
    7471 8-27154 PRUS PRUDENTIAL EQUITY GROUP, INC. NEW YORK NY
    103719 8-52216 PTAR PENSTAR TRADING, LLC SARASOTA FL
    8174 8-16267 PWJC UBS FINANCIAL SERVICES INC. NEW YORK NY
    119955 8-65239 QLAB QUANTLAB SECURITIES LP HOUSTON TX
    705 8-10999 RAJA RAYMOND JAMES & ASSOCIATES, INC. ST. PETERSBURG FL
    31194 8-45411 RBCM RBC DAIN RAUSCHER INC. MINNEAPOLIS MN
    18377 8-24255 RBLT ROSENBLATT SECURITIES INC. NEW YORK NY
    14094 8-26718 REFC REFCO SECURITIES, LLC NEW YORK NY
    7671 8-22871 REND REYNDERS, GRAY & CO., INCORPORATED NEW YORK NY
    7432 8-19060 ROBB LABRANCHE FINANCIAL SERVICES, INC. NEW YORK NY
    38455 8-48255 RSKY REDSKY SECURITIES, LLC CHICAGO IL
    728 8-16429 RTHS ROTHSCHILD INVESTMENT CORPORATION CHICAGO IL
    791 8-11754 SALI STERNE, AGEE & LEACH, INC. BIRMINGHAM AL
    3911 8-14662 SASI THE SEIDLER COMPANIES INCORPORATED LOS ANGELES CA
    7059 8-08177 SBSH CITIGROUP GLOBAL MARKETS INC. NEW YORK NY
    2692 8-13535 SCHB SCHWAB CAPITAL MARKETS L.P. JERSEY CITY NJ
    755 8-44373 SEAB SEABOARD SECURITIES, INC. FLORHAM PARK NJ
    8330 8-24971 SEAP SEAPORT SECURITIES CORP. NEW YORK NY
    14020 8-34354 SHMR O'CONNOR & COMPANY CHICAGO IL
    3403 8-04024 SHRE SHUFRO, ROSE & CO., LLC NEW YORK NY
    3466 8-00526 SILK SPEAR, LEEDS & KELLOGG, L.P. NEW YORK NY
    114657 8-53430 SKYC SKY CAPITAL LLC NEW YORK NY
    123421 8-65585 SMEX SMART EXECUTION SECURITIES, LLC SAN CLEMENTE CA
    20580 8-38325 SMHI SANDERS MORRIS HARRIS INC. HOUSTON TX
    15425 8-32227 SNDV SOUNDVIEW TECHNOLOGY CORPORATION OLD GREENWICH CT
    17972 8-36005 SOLO SOLOWEY & CO. MIAMI FL
    3496 8-01927 SPHN STEPHENS INC. LITTLE ROCK AR
    6271 8-17212 STCM SUNTRUST CAPITAL MARKETS, INC. ATLANTA GA
    6670 8-17758 STOX STOCKCROSS FINANCIAL SERVICES, INC. BOSTON MA
    45141 8-51004 SWFT SWIFT TRADE SECURITIES USA INC TORONTO ONTARIO  
    7973 8-17582 SWIS SWISS AMERICAN SECURITIES INC. NEW YORK NY
    6220 8-45123 SWST SOUTHWEST SECURITIES, INC. DALLAS TX
    41353 8-49386 TDCO THOMPSON DAVIS & CO., INC. RICHMOND VA
    103802 8-52290 TDSC TRACK DATA SECURITIES CORPORATION BROOKLYN NY
    120116 8-65260 THEM THEMIS TRADING LLC CHATHAM NJ
    45716 8-51141 THRC THOR CAPITAL LLC NEW YORK NY
    37761 8-47943 TNTO TERRA NOVA TRADING, L.L.C. CHICAGO IL
    3600 8-13621 TRFR TRANSAMERICA FINANCIAL ADVISORS, INC. LOS ANGELES CA
    103360 8-52181 TRNX TRINIX SECURITIES LLC ENCINITAS CA
    7654 8-22651 UBSW UBS SECURITIES LLC STAMFORD CT
    46145 8-51314 UNEX UNX, INC. BURBANK CA
    20804 8-38485 UPLN UNITED PLANNERS' FINANCIAL SERVICES OF AMERICA A LIMITED PAR SCOTTSDALE AZ
    11238 8-18118 USIC U.S. SECURITIES INTERNATIONAL NEW YORK NY
    26258 8-42448 VNDM VANDHAM SECURITIES CORP. NEW YORK NY
    39798 8-48838 VOLM NEOVEST TRADING ATLANTA GA
    104226 8-52688 VWPT VIEWPOINT SECURITIES, LLC BEND OR
    10012 8-25936 WABR WALL STREET ACCESS NEW YORK NY
    17912 8-35930 WANG WANG INVESTMENT ASSOCIATES, INC. NEW YORK NY
    7870 8-23395 WATH TD WATERHOUSE INVESTOR SERVICES, INC. NEW YORK NY
    797 8-07080 WATL A.B. WATLEY, INC. NEW YORK NY
    875 8-00484 WAYN WAYNE HUMMER INVESTMENTS L.L.C. CHICAGO IL
    1252 8-02698 WBLR WILLIAM BLAIR & COMPANY L.L.C. CHICAGO IL
    126292 8-65876 WCHV WACHOVIA CAPITAL MARKETS, LLC CHARLOTTE NC
    3777 8-14299 WDCO WILSON-DAVIS & CO., INC. SALT LAKE CITY UT
    867 8-02671 WDSB HELFANT GROUP, INC. NEW YORK NY
    877 8-12987 WEDB WEDBUSH MORGAN SECURITIES INC. LOS ANGELES CA
    7536 8-32215 WELC H. G. WELLINGTON & CO., INC. NEW YORK NY
    39310 8-48636 WEXS WEXFORD CLEARING SERVICES, LLC NEW YORK NY
    120719 8-65336 WEXX WOLVERINE EXECUTION SERVICES, LLC CHICAGO IL
    27308 8-43009 WGTC WG TRADING COMPANY LIMITED PARTNERSHIP GREENWICH CT
    10467 8-30639 WIEN WIEN SECURITIES CORP. JERSEY CITY NJ
    46237 8-51354 WISL THOMAS WEISEL PARTNERS LLC SAN FRANCISCO CA
    24673 8-41285 WLDC WORLDCO, L.L.C. NEW YORK NY
    42505 8-49936 WPAC WHITE PACIFIC SECURITIES, INC. SAN FRANCISCO CA
    2998 8-15648 WPGC ROBECO USA BROKERAGE SERVICES NEW YORK NY
    120435 8-65301 WRTH WORTHINGTON SECURITIES, L.L.C. DALLAS TX
    19616 8-37180 WSPD WACHOVIA SECURITIES, LLC RICHMOND VA
    8056 8-24126 YOSE YORK SECURITIES, INC. NEW YORK NY
    123000 8-65555   LINKBROKERS DERIVATIVES CORPORATION NEW YORK NY