SEC Proposes to Require Proposed NMS Plan Fee Amendments to Follow Public Notice, Comment, Approval

Washington DC (STL.News) – The Securities and Exchange Commission Tuesday proposed to require an amendment to a national market system plan (NMS plan) that would establish or change a fee or other charge (Proposed Fee Change) to be subject to the standard procedure for NMS plan amendments. The proposal would rescind a rule exception that allows an NMS plan amendment to be effective upon filing if it establishes or changes a fee or other charge. The standard procedure requires publication of the amendment, an opportunity for public comment, and Commission approval by order before the amendment can become effective.

“The fees charged by NMS plans affect a wide variety of investors and market participants,” said SEC Chairman Jay Clayton. “This rulemaking will help ensure that NMS plan fee changes benefit from review and comment by investors and market participants before those fees can be charged.”

Rule 608(b)(3)(i) of Regulation NMS currently permits a Proposed Fee Change to become effective immediately upon filing with the Commission, and an NMS plan may begin charging the new fee prior to an opportunity for public comment and without Commission action. By changing the timing of effectiveness, the proposed rescission of Rule 608(b)(3)(i) provides investors and other market participants an opportunity to voice their views about a Proposed Fee Change prior to the time they are charged a new or changed fee.


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