Section 31 Fees

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Section 31 fees, also known as SEC fees, are fees imposed by the U.S. Securities and Exchange Commission (SEC) on certain securities transactions. These fees are authorized under Section 31 of the Securities Exchange Act of 1934 and are designed to fund the SEC's operations and regulatory activities.[1][2]

Section 31 fees are typically assessed on transactions involving the sale of exchange-listed equities, options, and certain other securities. The fees are collected by the SEC from securities exchanges, including national securities exchanges like the New York Stock Exchange (NYSE) and the Nasdaq Stock Market, as well as from the Financial Industry Regulatory Authority (FINRA).[3]

The amount of Section 31 fees is determined by the SEC and may vary depending on the type of transaction and the size of the trade. These fees are usually a small fraction of the total transaction value and are automatically deducted by the broker or exchange handling the transaction.

Section 31 fees play a crucial role in funding the SEC's regulatory activities, including enforcement actions, market oversight, and investor protection efforts. They help ensure the integrity and stability of the U.S. securities markets by providing the SEC with the necessary resources to carry out its regulatory mandate.