SEC to more than quadruple transaction fees (removing Bush years huge discount)

[Robbien]

Source: Reuters

The Securities and Exchange Commission said on Wednesday that it would charge $25.70 per $1 million in securities sales, up from the current $5.60, for transactions on exchanges and the private over-the-counter markets. The new fees take effect in April.

The regulator said it needed to boost its take to reach the targeted collection amount of $1.02 billion in fiscal 2009.

The current transaction fee is among the lowest the SEC has ever charged; the new fees are closer to previous years.

Read more: http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN0531363720090305

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Appears Wall Streeters got a discount of almost $800M in annual fees.

[FreakinDJ]

1. Good - the Fees will help stabilize the market

Too low a fee encourages day-traders and speculators

[HowHasItComeToThis]

4. OUTLAW SHORT SELLING IMMEDIATELY

[Cynical Guy]

5. Please look at the figures again.

dollars on millions do not discourage day-traders and speculators.

The reduced fees were a gift to the biggest traders. Billions of shares trading daily. Think pension funds, mutual funds, etc.

This isn't reflected in the 7.95/trade fee or whatever some schmoe is paying. But you're darn tootin' that every brokerage will figure out how to increase their fees with this as their reason.

You can't discourage day-traders and speculators any less than you can stop people from playing the lottery or going to Vegas.

Fees are not the barrier. If somebody speculates with their personal money and loses, they made that decision. Somebody on the other end of the deal made the smarter trade. You can double, triple the fees paid per transaction for non-professional traders, and they'll still be there.


And to the person who yelled outlaw short selling in response to your post, short selling should be very tightly controlled. Naked short selling of more shares than exist in a firm, that is illegal. Even though it happens regularly. Ask Overstock.com's CEO what he thinks of the practice. But short selling isn't bad. Unregulated borrowing of securities without proper margin backing IS bad.

[napi21]

2. I won't argue because I don't know what the "normal fees" were, but

somehow it seems like even the $25.70 is awfully low. If I were trading millions, somehow it sdounds like pocket change to me.

[Robbien]

3. With the loyal Bushie SEC we had before

We should count ourselves lucky we weren't paying Wall Streeters to use the exchange instead of the other way around.

[eridani]

6. Seems to me we should be multiplying that by 100 or so n/t