Fee Rate Advisory #12 for Fiscal Year 2003

FOR IMMEDIATE RELEASE
2003-27

Washington, D.C., February 28, 2003 -- As required by Section 31 of the Securities Exchange Act of 1934, the Commission must make a mid-year rate adjustment to the Section 31 transaction fee rate. Effective April 1, 2003, the revised Section 31 transaction fee rate will be $46.80 per million.

As described in Fee Rate Advisory #11 for Fiscal Year 2003, available at http://www.sec.gov/news/press/2003-24.htm, the Section 31 fee rate will decrease from the current rate to $25.20 per million effective March 22, 2003, and remain at that level until April 1, 2003, when the mid-year adjustment becomes effective. The Section 31 assessment on security futures transactions will not be changed from the current rate of $0.009 per round turn transaction, and will not be affected by either the March 22, 2003 or April 1, 2003 rate adjustment.

The Commission consulted with both the Congressional Budget Office and the Office of Management and Budget about the mid-year adjustment, as required by the Act. The increase in the rate is a direct consequence of the decline in dollar volume of securities transactions thus far in fiscal year 2003. The Commission does not receive any additional funding as a result of the increase in the fee rate. A copy of the Commission's order and calculation methodology is available at http://www.sec.gov.

Self-regulatory organizations collect Section 31 fees pursuant to their rules. Additional information on the transition to the new Section 31 fee rate will be available shortly on the Internet Web sites of The New York Stock Exchange, Inc. and NASD Inc. at http://www.nyse.com and http://www.nasd.com. The Office of Interpretation and Guidance in the SEC's Division of Market Regulation is also available for questions on Section 31 fees at (202) 942-0069, or by e-mail at marketreg@sec.gov.

The Commission will announce the fiscal year 2004 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, 2003. This rate will become effective on Oct. 1, 2003, or 30 days after the date on which the Commission receives its fiscal 2004 regular appropriation, whichever date comes later.