Securities and Exchange Commission v. From Issuers On the Registration of Securities, et al.

   
SECURITIES AND EXCHANGE COMMISSION  
[Release Nos. 33-8794; 34-55682 / April 30, 2007 
 
Order Making Fiscal Year 2008 Annual Adjustments to the Fee Rates Applicable 
under Section 6(b) of the Securities Act of 1933 and Sections 13(e), 14(g), 31(b), and 
31(c) of the Securities Exchange Act of 1934 
 
I.         Background         
The Commission collects fees under various provisions of the securities laws.  
Section 6(b) of the Securities Act of 1933 (“Securities Act”) requires the Commission to 
collect fees from issuers on the registration of securities.
1
  Section 13(e) of the Securities 
Exchange Act of 1934 (“Exchange Act”) requires the Commission to collect fees on 
specified repurchases of securities.
2
  Section 14(g) of the Exchange Act requires the 
Commission to collect fees on proxy solicitations and statements in corporate control 
transactions.
3
  Finally, Sections 31(b) and (c) of the Exchange Act require national 
securities exchanges and national securities associations, respectively, to pay fees to the 
Commission on transactions in specified securities.
4
   
The Investor and Capital Markets Fee Relief Act (“Fee Relief Act”)
5
 amended 
Section 6(b) of the Securities Act and Sections 13(e), 14(g), and 31 of the Exchange Act 
to require the Commission to make annual adjustments to the fee rates applicable under 
                                                
 
1
  15 U.S.C. 77f(b). 
 
2
  15 U.S.C. 78m(e). 
 
3
  15 U.S.C. 78n(g). 
 
4
  15 U.S.C. 78ee(b) and (c).  In addition, Section 31(d) of the Exchange Act requires the 
Commission to collect assessments from national securities exchanges and national securities 
associations for round turn transactions on security futures.  15 U.S.C. 78ee(d). 
 
5
  Pub. L. No. 107-123, 115 Stat. 2390 (2002). 

these sections for each of the fiscal years 2003 through 2011, and one final adjustment to 
fix the fee rates under these sections for fiscal year 2012 and beyond.
6
II. Fiscal Year 2008 Annual Adjustment to the Fee Rates Applicable under 
Section 6(b) of the Securities Act and Sections 13(e) and 14(g) of the 
Exchange Act 
 
 Section 6(b)(5) of the Securities Act requires the Commission to make an annual 
adjustment to the fee rate applicable under Section 6(b) of the Securities Act in each of 
the fiscal years 2003 through 2011.
7
  In those same fiscal years, Sections 13(e)(5) and 
14(g)(5) of the Exchange Act require the Commission to adjust the fee rates under 
Sections 13(e) and 14(g) to a rate that is equal to the rate that is applicable under Section 
6(b).  In other words, the annual adjustment to the fee rate under Section 6(b) of the 
Securities Act also sets the annual adjustment to the fee rates under Sections 13(e) and 
14(g) of the Exchange Act. 
Section 6(b)(5) sets forth the method for determining the annual adjustment to the 
fee rate under Section 6(b) for fiscal year 2008.  Specifically, the Commission must 
adjust the fee rate under Section 6(b) to a “rate that, when applied to the baseline estimate 
of the aggregate maximum offering prices for [fiscal year 2008], is reasonably likely to 
produce aggregate fee collections under [Section 6(b)] that are equal to the target 
offsetting collection amount for [fiscal year 2008].”  That is, the adjusted rate is 
                                                 
6
  See 15 U.S.C. 77f(b)(5), 77f(b)(6), 78m(e)(5), 78m(e)(6), 78n(g)(5), 78n(g)(6), 78ee(j)(1), and 
78ee(j)(3).  Section 31(j)(2) of the Exchange Act, 15 U.S.C. 78ee(j)(2), also requires the 
Commission, in specified circumstances, to make a mid-year adjustment to the fee rates under 
Sections 31(b) and (c) of the Exchange Act in fiscal years 2002 through 2011. 
 
7
  The annual adjustments are designed to adjust the fee rate in a given fiscal year so that, when 
applied to the aggregate maximum offering price at which securities are proposed to be offered for 
the fiscal year, it is reasonably likely to produce total fee collections under Section 6(b) equal to 
the “target offsetting collection amount” specified in Section 6(b)(11)(A) for that fiscal year. 
 
  
2

determined by dividing the “target offsetting collection amount” for fiscal year 2008 by 
the “baseline estimate of the aggregate maximum offering prices” for fiscal year 2008. 
 Section 6(b)(11)(A) specifies that the “target offsetting collection amount” for 
fiscal year 2008 is $234,000,000.
8
  Section 6(b)(11)(B) defines the “baseline estimate of 
the aggregate maximum offering price” for fiscal year 2008 as “the baseline estimate of 
the aggregate maximum offering price at which securities are proposed to be offered 
pursuant to registration statements filed with the Commission during [fiscal year 2008] as 
determined by the Commission, after consultation with the Congressional Budget Office 
and the Office of Management and Budget . . . .” 
 To make the baseline estimate of the aggregate maximum offering price for fiscal 
year 2008, the Commission is using the same methodology it developed in consultation 
with the Congressional Budget Office (“CBO”) and Office of Management and Budget 
(“OMB”) to project aggregate offering price for purposes of the fiscal year 2007 annual 
adjustment.  Using this methodology, the Commission determines the “baseline estimate 
of the aggregate maximum offering price” for fiscal year 2008 to be 
$5,959,775,433,491.
9
  Based on this estimate, the Commission calculates the fee rate for 
                                                 
8
  Congress determined the target offsetting collection amounts by applying reduced fee rates to the 
CBO’s January 2001 projections of the aggregate maximum offering prices for fiscal years 2002 
through 2011.  In any fiscal year through fiscal year 2011, the annual adjustment mechanism will 
result in additional fee rate reductions if the CBO’s January 2001 projection of the aggregate 
maximum offering prices for the fiscal year proves to be too low, and fee rate increases if the 
CBO’s January 2001 projection of the aggregate maximum offering prices for the fiscal year 
proves to be too high. 
 
9
  Appendix A explains how we determined the “baseline estimate of the aggregate maximum 
offering price” for fiscal year 2008 using our methodology, and then shows the purely arithmetical 
process of calculating the fiscal year 2008 annual adjustment based on that estimate.  The 
appendix includes the data used by the Commission in making its “baseline estimate of the 
aggregate maximum offering price” for fiscal year 2008. 
 
  
3

fiscal 2008 to be $39.30 per million.  This adjusted fee rate applies to Section 6(b) of the 
Securities Act, as well as to Sections 13(e) and 14(g) of the Exchange Act.  
III. Fiscal Year 2008 Annual Adjustment to the Fee Rates Applicable under 
Sections 31(b) and (c) of the Exchange Act 
 
Section 31(b) of the Exchange Act requires each national securities exchange to 
pay the Commission a fee at a rate, as adjusted by our order pursuant to Section 
31(j)(2),
10
 which currently is $15.30 per million of the aggregate dollar amount of sales 
of specified securities transacted on the exchange.  Similarly, Section 31(c) requires each 
national securities association to pay the Commission a fee at the same adjusted rate on 
the aggregate dollar amount of sales of specified securities transacted by or through any 
member of the association otherwise than on an exchange.  Section 31(j)(1) requires the 
Commission to make annual adjustments to the fee rates applicable under Sections 31(b) 
and (c) for each of the fiscal years 2003 through 2011.
11
   
Section 31(j)(1) specifies the method for determining the annual adjustment for 
fiscal year 2008.  Specifically, the Commission must adjust the rates under Sections 31(b) 
and (c) to a “uniform adjusted rate that, when applied to the baseline estimate of the 
aggregate dollar amount of sales for [fiscal year 2008], is reasonably likely to produce 
aggregate fee collections under [Section 31] (including assessments collected under 
                                                 
10
  Order Making Fiscal Year 2007 Annual Adjustments to the Fee Rates Applicable under Section 
6(b) of the Securities Act of 1933 and Sections 13(e), 14(g), 31(b) and 31(c) of the Securities 
Exchange Act of 1934, Rel. No. 33-8681 (April 28, 2006), 71 FR 26132 (May 3, 2006). 
 
11
  The annual adjustments, as well as the mid-year adjustments required in specified circumstances 
under Section 31(j)(2) in fiscal years 2002 through 2011, are designed to adjust the fee rates in a 
given fiscal year so that, when applied to the aggregate dollar volume of sales for the fiscal year, 
they are reasonably likely to produce total fee collections under Section 31 equal to the “target 
offsetting collection amount” specified in Section 31(
l)(1) for that fiscal year. 
 
  
4

[Section 31(d)]) that are equal to the target offsetting collection amount for [fiscal year 
2008].”   
Section 31(l)(1) specifies that the “target offsetting collection amount” for fiscal 
year 2008 is $892,000,000.
12
  Section 31(l)(2) defines the “baseline estimate of the 
aggregate dollar amount of sales” as “the baseline estimate of the aggregate dollar 
amount of sales of securities . . . to be transacted on each national securities exchange and 
by or through any member of each national securities association (otherwise than on a 
national securities exchange) during [fiscal year 2008] as determined by the Commission, 
after consultation with the Congressional Budget Office and the Office of Management 
and Budget . . . .”  
To make the baseline estimate of the aggregate dollar amount of sales for fiscal 
year 2008, the Commission is using the same methodology it developed in consultation 
with the CBO and OMB to project dollar volume for purposes of prior fee adjustments.
13
  
Using this methodology, the Commission calculates the baseline estimate of the 
aggregate dollar amount of sales for fiscal year 2008 to be $78,732,152,559,457.  Based 
on this estimate, and an estimated collection of $18,017 in assessments on security 
                                                 
12
  Congress determined the target offsetting collection amounts by applying reduced fee rates to the 
CBO’s January 2001 projections of dollar volume for fiscal years 2002 through 2011.  In any 
fiscal year through fiscal year 2011, the annual and, in specified circumstances, mid-year 
adjustment mechanisms will result in additional fee rate reductions if the CBO’s January 2001 
projection of dollar volume for the fiscal year proves to be too low, and fee rate increases if the 
CBO’s January 2001 projection of dollar volume for the fiscal year proves to be too high. 
 
13
  Appendix B explains how we determined the “baseline estimate of the aggregate dollar amount of 
sales” for fiscal year 2007 using our methodology, and then shows the purely arithmetical process 
of calculating the fiscal year 2007 annual adjustment based on that estimate.  The appendix also 
includes the data used by the Commission in making its “baseline estimate of the aggregate dollar 
amount of sales” for fiscal year 2007.   
 
  
5

futures transactions under Section 31(d) in fiscal year 2008, the uniform adjusted rate for 
fiscal year 2008 is 11.00 per million.
14
IV. Effective Dates of the Annual Adjustments 
 Section 6(b)(8)(A) of the Securities Act provides that the fiscal year 2008 annual 
adjustment to the fee rate applicable under Section 6(b) of the Securities Act shall take 
effect on the later of October 1, 2007, or five days after the date on which a regular 
appropriation to the Commission for fiscal year 2008 is enacted.
15
  Section 13(e)(8)(A) 
and 14(g)(8)(A) of the Exchange Act provide for the same effective date for the annual 
adjustments to the fee rates applicable under Sections 13(e) and 14(g) of the Exchange 
Act.
16
 Section 31(j)(4)(A) of the Exchange Act provides that the fiscal year 2008 annual 
adjustments to the fee rates applicable under Sections 31(b) and (c) of the Exchange Act 
shall take effect on the later of October 1, 2007, or 30 days after the date on which a 
regular appropriation to the Commission for fiscal year 2008 is enacted. 
V.        Conclusion        
Accordingly, pursuant to Section 6(b) of the Securities Act and Sections 13(e), 
14(g), and 31 of the Exchange Act,
17
  
IT IS HEREBY ORDERED that the fee rates applicable under Section 6(b) of the 
Securities Act and Sections 13(e) and 14(g) of the Exchange Act shall be $39.30 per 
                                                
 
14
  The calculation of the adjusted fee rate assumes that the current fee rate of $15.30 per million will 
apply through October 31, 2007, due to the operation of the effective date provision contained in 
Section 31(j)(4)(A) of the Exchange Act. 
 
15
  15 U.S.C. 77f(b)(8)(A). 
 
16
  15 U.S.C. 78m(e)(8)(A) and 78n(g)(8)(A). 
 
17
  15 U.S.C. 77f(b), 78m(e), 78n(g), and 78ee(j). 
  
6

million effective on the later of October 1, 2007, or five days after the date on which a 
regular appropriation to the Commission for fiscal year 2008 is enacted; and 
IT IS FURTHER ORDERED that the fee rates applicable under Sections 31(b) 
and (c) of the Exchange Act shall be $11.00 per million effective on the later of October 
1, 2007, or 30 days after the date on which a regular appropriation to the Commission for 
fiscal year 2008 is enacted. 
 
By the Commission.  
 
Nancy M. Morris  
Secretary 
  
7

APPENDIX A 
With the passage of the Investor and Capital Markets Relief Act, Congress has, 
among other things, established a target amount of monies to be collected from fees 
charged to issuers based on the value of their registrations.  This appendix provides the 
formula for determining such fees, which the Commission adjusts annually.  Congress 
has mandated that the Commission determine these fees based on the “aggregate 
maximum offering prices,” which measures the aggregate dollar amount of securities 
registered with the Commission over the course of the year.  In order to maximize the 
likelihood that the amount of monies targeted by Congress will be collected, the fee rate 
must be set to reflect projected aggregate maximum offering prices.  As a percentage, the 
fee rate equals the ratio of the target amounts of monies to the projected aggregate 
maximum offering prices. 
For 2008, the Commission has estimated the aggregate maximum offering prices 
by projecting forward the trend established in the previous decade.  More specifically, an 
ARIMA model was used to forecast the value of the aggregate maximum offering prices 
for months subsequent to March 2007, the last month for which the Commission has data 
on the aggregate maximum offering prices. 
The following sections describe this process in detail. 
A. Baseline estimate of the aggregate maximum offering prices for fiscal year 2008. 
First, calculate the aggregate maximum offering prices (AMOP) for each month 
in the sample (March 1997 - March 2007).  Next, calculate the percentage change in the 
AMOP from month to month. 
 
  
8

Model the monthly percentage change in AMOP as a first order moving average 
process.  The moving average approach allows one to model the effect that an 
exceptionally high (or low) observation of AMOP tends to be followed by a more 
“typical” value of AMOP. 
Use the estimated moving average model to forecast the monthly percent change 
in AMOP.  These percent changes can then be applied to obtain forecasts of the total 
dollar value of registrations.  The following is a more formal (mathematical) description 
of the procedure: 
1. Begin with the monthly data for AMOP.  The sample spans ten years, from March 
1997 to March 2007. 
2. Divide each month’s AMOP (column C) by the number of trading days in that month 
(column B) to obtain the average daily AMOP (AAMOP, column D). 
3. For each month t, the natural logarithm of AAMOP is reported in column E. 
4. Calculate the change in log(AAMOP) from the previous month as            
Δ
t
 = log (AAMOP
t
) – log(AAMOP
t-1
).  This approximates the percentage change. 
5. Estimate the first order moving average model Δ
t
 = α + βe
t-1
 + e
t
, where e
t
 denotes the 
forecast error for month t.  The forecast error is simply the difference between the 
one-month ahead forecast and the actual realization of Δ
t
.  The forecast error is 
expressed as e
t
 = Δ
t
 – α – βe
t-1
.  The model can be estimated using standard 
commercially available software such as SAS or Eviews.  Using least squares, the 
estimated parameter values are α=0.00781 and β=−0.76766. 
  
9

6. For the month of April 2007 forecast Δ
t = 4/07
 = α + βe
t = 3/07
.  For all subsequent 
months, forecast Δ
t
 = α. 
7. Calculate forecasts of log(AAMOP).  For example, the forecast of log(AAMOP) for 
June 2007 is given by FLAAMOP
 t = 6/07
 = log(AAMOP
 t = 3/07
) + Δ
 t = 4/07
 +Δ
 t = 5/07
 +   
Δ
 t = 6/07
. 
8. Under the assumption that e
t
 is normally distributed, the n-step ahead forecast of 
AAMOP is given by exp(FLAAMOP
t
 + σ
n
2
/2), where σ
n
 denotes the standard error 
of the n-step ahead forecast.  
9. For June 2007, this gives a forecast AAMOP of $21.2 Billion (Column I), and a 
forecast AMOP of $444.9 Billion (Column J). 
10. Iterate this process through September 2008 to obtain a baseline estimate of the 
aggregate maximum offering prices for fiscal year 2008 of $5,959,775,433,491. 
B. Using the forecasts from A to calculate the new fee rate. 
1. Using the data from Table A, estimate the aggregate maximum offering prices 
between 10/1/07 and 9/30/08 to be $5,959,775,433,491. 
2. The rate necessary to collect the target $234,000,000 in fee revenues set by Congress 
is then calculated as:  $234,000,000 ÷ $5,959,775,433,491 = 0.00003926 (or $39.30 
per million.). 
  
10

Table A. Estimation of baseline of aggregate maximum offering prices .Fee rate calculation.a. Baseline estimate of the aggregate maximum offering prices, 10/1/07 to 9/30/08 ($Millions)
5,959,775
b. Implied fee rate ($234 Million / a)
$39.30
Data
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
(I)
(J)
Month
# of Trading Days 
in Month
Aggregate 
Maximum Offering 
Prices, in $Millions
Average Daily 
Aggregate Max. 
Offering Prices 
(AAMOP) in 
$Millions
log(AAMOP)
Change in 
AAMOP
Forecast 
log(AAMOP)
Standard Error
Forecast AAMOP, 
in $Millions
Forecast 
Aggregate 
Maximum Offering 
Prices, in $Millions
Mar-97
20
140,809
7,040
22.675
Apr-97
22
182,657
8,303
22.840
0.165
May-97
21
163,702
7,795
22.777
-0.063
Jun-97
21
162,111
7,720
22.767
-0.010
Jul-97
22
168,007
7,637
22.756
-0.011
Aug-97
21
153,705
7,319
22.714
-0.042
Sep-97
21
179,559
8,550
22.869
0.155
Oct-97
23
260,719
11,336
23.151
0.282
Nov-97
19
219,618
11,559
23.171
0.020
Dec-97
22
228,605
10,391
23.064
Jan-98
20
228,030
11,402
23.157
Feb-98
19
250,266
13,172
23.301
Mar-98
22
378,185
17,190
23.568
Apr-98
21
242,310
11,539
23.169
-0.399
May-98
20
298,454
14,923
23.426
0.257
Jun-98
22
328,994
14,954
23.428
0.002
Jul-98
22
272,957
12,407
23.242
-0.187
Aug-98
21
392,104
18,672
23.650
0.409
Sep-98
21
325,144
15,483
23.463
-0.187
Oct-98
22
139,786
6,354
22.572
-0.891
Nov-98
20
269,065
13,453
23.322
0.750
Dec-98
22
248,596
11,300
23.148
-0.174
Jan-99
19
253,448
13,339
23.314
0.166
Feb-99
19
217,433
11,444
23.161
-0.153
Mar-99
23
415,145
18,050
23.616
0.456
Apr-99
21
431,280
20,537
23.746
0.129
May-99
20
229,082
11,454
23.162
-0.584
  
11

Jun-99
22
367,943
16,725
23.540
0.379
Jul-99
21
332,623
15,839
23.486
-0.054
Aug-99
22
240,157
10,916
23.114
-0.372
Sep-99
21
236,011
11,239
23.143
0.029
Oct-99
21
216,883
10,328
23.058
-0.085
Nov-99
21
372,582
17,742
23.599
0.541
Dec-99
22
319,846
14,538
23.400
-0.199
Jan-00
20
282,165
14,108
23.370
-0.030
Feb-00
20
665,367
33,268
24.228
0.858
Mar-00
23
550,107
23,918
23.898
-0.330
Apr-00
19
244,510
12,869
23.278
-0.620
May-00
22
269,774
12,262
23.230
-0.048
Jun-00
22
406,409
18,473
23.640
0.410
Jul-00
20
230,894
11,545
23.169
-0.470
Aug-00
23
257,797
11,209
23.140
-0.030
Sep-00
20
332,120
16,606
23.533
0.393
Oct-00
22
362,493
16,477
23.525
-0.008
Nov-00
21
317,653
15,126
23.440
-0.086
Dec-00
20
246,006
12,300
23.233
-0.207
Jan-01
21
462,726
22,035
23.816
0.583
Feb-01
19
388,304
20,437
23.741
-0.075
Mar-01
22
523,443
23,793
23.893
0.152
Apr-01
20
289,212
14,461
23.395
-0.498
May-01
22
274,298
12,468
23.246
-0.148
Jun-01
21
348,268
16,584
23.532
0.285
Jul-01
21
264,590
12,600
23.257
-0.275
Aug-01
23
245,591
10,678
23.091
-0.165
Sep-01
15
178,524
11,902
23.200
0.108
Oct-01
23
260,719
11,336
23.151
-0.049
Nov-01
21
286,199
13,629
23.335
0.184
Dec-01
20
395,230
19,762
23.707
0.372
Jan-02
21
401,290
19,109
23.673
-0.034
Feb-02
19
476,837
25,097
23.946
0.273
Mar-02
20
380,160
19,008
23.668
-0.278
 
  
12

Apr-02
22
282,947
12,861
23.277
-0.391
May-02
22
215,645
9,802
23.006
-0.272
Jun-02
20
277,757
13,888
23.354
0.348
Jul-02
22
208,638
9,484
22.973
-0.381
Aug-02
22
265,750
12,080
23.215
0.242
Sep-02
20
109,565
5,478
22.424
-0.791
Oct-02
23
179,374
7,799
22.777
0.353
Nov-02
20
243,590
12,179
23.223
0.446
Dec-02
21
212,838
10,135
23.039
-0.184
Jan-03
21
201,839
9,611
22.986
-0.053
Feb-03
19
144,642
7,613
22.753
-0.233
Mar-03
21
444,331
21,159
23.775
1.022
Apr-03
21
142,373
6,780
22.637
-1.138
May-03
21
328,792
15,657
23.474
0.837
Jun-03
21
281,580
13,409
23.319
-0.155
Jul-03
22
304,383
13,836
23.351
0.031
Aug-03
21
328,351
15,636
23.473
0.122
Sep-03
21
459,563
21,884
23.809
0.336
Oct-03
23
285,039
12,393
23.240
-0.569
Nov-03
19
257,779
13,567
23.331
0.091
Dec-03
22
244,998
11,136
23.133
-0.197
Jan-04
20
369,784
18,489
23.640
0.507
Feb-04
19
221,517
11,659
23.179
-0.461
Mar-04
23
448,543
19,502
23.694
0.514
Apr-04
21
260,029
12,382
23.240
-0.454
May-04
20
227,239
11,362
23.154
-0.086
Jun-04
21
370,668
17,651
23.594
0.441
Jul-04
21
305,519
14,549
23.401
-0.193
Aug-04
22
179,688
8,168
22.823
-0.577
Sep-04
21
357,007
17,000
23.556
0.733
Oct-04
21
254,489
12,119
23.218
-0.338
Nov-04
21
363,406
17,305
23.574
0.356
Dec-04
22
570,918
25,951
23.979
0.405
Jan-05
20
375,484
18,774
23.656
-0.324
  
13

Feb-05
19
338,922
17,838
23.605
-0.051
Mar-05
22
590,862
26,857
24.014
0.409
Apr-05
21
282,018
13,429
23.321
-0.693
May-05
21
323,652
15,412
23.458
0.138
Jun-05
22
517,022
23,501
23.880
0.422
Jul-05
20
457,487
22,874
23.853
-0.027
Aug-05
23
605,534
26,328
23.994
0.141
Sep-05
21
312,281
14,871
23.423
-0.571
Oct-05
21
258,956
12,331
23.235
-0.187
Nov-05
21
192,736
9,178
22.940
-0.295
Dec-05
21
308,134
14,673
23.409
0.469
Jan-06
20
526,550
26,328
23.994
0.585
Feb-06
19
301,446
15,866
23.487
-0.506
Mar-06
23
1,211,344
52,667
24.687
1.200
Apr-06
19
407,345
21,439
23.788
-0.899
May-06
22
260,121
11,824
23.193
-0.595
Jun-06
22
375,296
17,059
23.560
0.367
Jul-06
20
232,654
11,633
23.177
-0.383
Aug-06
23
310,050
13,480
23.325
0.147
Sep-06
20
236,782
11,839
23.195
-0.130
Oct-06
22
213,342
9,697
22.995
-0.200
Nov-06
21
292,456
13,926
23.357
0.362
Dec-06
20
349,512
17,476
23.584
0.227
Jan-07
20
372,740
18,637
23.648
0.064
Feb-07
19
278,753
14,671
23.409
-0.239
Mar-07
22
862,786
39,218
24.392
0.983
Apr-07
20
23.694
0.348
20,722
414,450
May-07
22
23.702
0.357
20,954
460,977
Jun-07
21
23.709
0.366
21,187
444,929
Jul-07
21
23.717
0.375
21,423
449,890
Aug-07
23
23.725
0.384
21,662
498,230
Sep-07
19
23.733
0.392
21,904
416,170
Oct-07
23
23.741
0.401
22,148
509,401
Nov-07
21
23.749
0.409
22,395
470,291
  
14

Dec-07
20
23.756
0.417
22,644
452,890
Jan-08
21
23.764
0.424
22,897
480,836
Feb-08
20
23.772
0.432
23,152
463,044
Mar-08
20
23.780
0.440
23,410
468,207
Apr-08
22
23.788
0.447
23,671
520,769
May-08
21
23.795
0.454
23,935
502,640
Jun-08
21
23.803
0.461
24,202
508,244
Jul-08
22
23.811
0.468
24,472
538,382
Aug-08
21
23.819
0.475
24,745
519,640
Sep-08
21
23.827
0.482
25,021
525,433
  
15

Figure A 
Aggregate Maximum Offering Prices Subject to Securities Act Section 6(b)
(Dashed Line Indicates Forecast Values)
$0
$200$400$600$800
$1,000$1,200$1,400
Mar-96
Mar-97
Mar-98
Mar-99
Mar-00
Mar-01
Mar-02
Mar-03
Mar-04
Mar-05
Mar-06
Mar-07
Dollar Value,
$Billions
October 2006
  
16

APPENDIX B 
With the passage of the Investor and Capital Markets Relief Act, Congress has, among 
other things, established a target amount of monies to be collected from fees charged to investors 
based on the value of their transactions.  This appendix provides the formula for determining 
such fees, which the Commission adjusts annually, and may adjust semi-annually.
18
  In order to 
maximize the likelihood that the amount of monies targeted by Congress will be collected, the 
fee rate must be set to reflect projected dollar transaction volume on the securities exchanges and 
certain over-the-counter markets over the course of the year.  As a percentage, the fee rate equals 
the ratio of the target amounts of monies to the projected dollar transaction volume. 
For 2008, the Commission has estimated dollar transaction volume by projecting forward 
the trend established in the previous decade.  More specifically, dollar transaction volume was 
forecasted for months subsequent to March 2007, the last month for which the Commission has 
data on transaction volume.     
The following sections describe this process in detail. 
A. Baseline estimate of the aggregate dollar amount of sales for fiscal year 2008. 
First, calculate the average daily dollar amount of sales (ADS) for each month in the 
sample (March 1997 - March 2007).  The monthly aggregate dollar amount of sales (exchange 
plus certain over-the-counter markets) is presented in column C of Table B. 
Next, calculate the change in the natural logarithm of ADS from month to month.  The 
average monthly percentage growth of ADS over the entire sample is 0.014 and the standard 
deviation 0.115.  Assuming the monthly percentage change in ADS follows a random walk, 
                                                
 
18
  Congress requires that the Commission make a mid-year adjustment to the fee rate if four months into the 
fiscal year it determines that its forecasts of aggregate dollar volume are reasonably likely to be off by 10% 
or more. 
 
17

calculating the expected monthly percentage growth rate for the full sample is straightforward.  
The expected monthly percentage growth rate of ADS is 2.1%.   
Now, use the expected monthly percentage growth rate to forecast total dollar volume.  
For example, one can use the ADS for March 2007 ($238,343,650,750) to forecast ADS for 
April 2007 ($243,433,544,609= $238,343,650,750 x 1.021)
 
.
19
  Multiply by the number of 
trading days in April 2007 (20) to obtain a forecast of the total dollar volume for the month 
($4,868,670,892,189).  Repeat the method to generate forecasts for subsequent months. 
The forecasts for total dollar volume are in column G of Table B.  The following is a 
more formal (mathematical) description of the procedure: 
1. Divide each month’s total dollar volume (column C) by the number of trading days in that 
month (column B) to obtain the average daily dollar volume (ADS, column D). 
2. For each month t, calculate the change in ADS from the previous month as           
Δ
t
 = log (ADS
t
 / ADS
t-1
), where log (x) denotes the natural logarithm of x. 
3. Calculate the mean and standard deviation of the series {Δ
1
, Δ
2
, ... , Δ
120
}.  These are given 
by μ = 0.014 and σ = 0.115, respectively. 
4. Assume that the natural logarithm of ADS follows a random walk, so that Δ
s
 and Δ
t
 are 
statistically independent for any two months s and t.  
5. Under the assumption that Δ
t
 is normally distributed, the expected value of ADS
t
 /ADS
t-1
 is 
given by exp (μ + σ
2
/2), or on average ADS
t
 = 1.021 × ADS
t-1
. 
                                                
 
19
  The value 1.021 has been rounded.  All computations are done with the unrounded value. 
 
18

6. For April 2007, this gives a forecast ADS of 1.021 × $238,343,650,750= $243,433,544,609. 
Multiply this figure by the 20 trading days in April 2007 to obtain a total dollar volume 
forecast of $4,868,670,892,189. 
7. For May 2007, multiply the April 2007 ADS forecast by 1.021 to obtain a forecast ADS of 
$248,632,134,545.  Multiply this figure by the 22 trading days in May 2007 to obtain a total 
dollar volume forecast of $5,469,906,959,979. 
8. Repeat this procedure for subsequent months. 
B. Using the forecasts from A to calculate the new fee rate. 
1. Use Table B to estimate fees collected for the period 10/1/07 through 10/31/07.  The 
projected aggregate dollar amount of sales for this period is $6,355,786,096,164.  Projected 
fee collections at the current fee rate of 0.0000153 are $97,243,527. 
2. Estimate the amount of assessments on securities futures products collected during 10/1/07 
and 9/30/08 to be $18,017 by projecting a 2.1% monthly increase from a base of $1,150 in 
March 2007. 
3. Subtract the amounts $97,243,527 and $18,017 from the target offsetting collection amount 
set by Congress of $892,000,000 leaving $794,738,456 to be collected on dollar volume for 
the period 11/1/07 through 9/30/08. 
4. Use Table B to estimate dollar volume for the period 11/1/07 through 9/30/08.  The estimate 
is $72,376,366,463,293.  Finally, compute the fee rate required to produce the additional 
$794,738,456 in revenue.  This rate is $794,738,456 divided by $72,376,366,463,293 or 
0.0000109806. 
 
19

 
5. Round the result to the seventh decimal point, yielding a rate of .0000110 (or $11.00 per 
million). 
 
20

Table B. Estimation of baseline of the aggregate dollar amount of sales.
Fee rate calculation.
a. Baseline estimate of the aggregate dollar amount of sales, 10/1/07 to 10/31/07 ($Millions)6,355,786
b. Baseline estimate of the aggregate dollar amount of sales, 11/1/07 to 9/30/08 ($Millions)72,376,366
c. Estimated collections in assessments on securities futures products in FY 2008 ($Millions)0.018
d. Implied fee rate (($892,000,000 - 0.0000153*a - c) /b)$11.0
Data
(A)(B)(C)(D)(E)(F)(G)
Month
# of Trading Days in 
Month
Aggregate Dollar 
Amount of Sales
Average Daily Dollar 
Amount of Sales 
(ADS)
Change in LN of ADSForecast ADS
Forecast Aggregate 
Dollar Amount of 
Sales
Mar-9720839,192,728,78841,959,636,439-
Apr-9722862,799,213,31539,218,146,060-0.068
May-9721925,733,852,64744,082,564,4120.117
Jun-9721930,409,085,85944,305,194,5650.005
Jul-97221,085,682,706,89849,349,213,9500.108
Aug-97211,031,344,138,75149,111,625,655-0.005
Sep-97211,036,460,244,60249,355,249,7430.005
Oct-97231,329,653,432,71857,811,018,8140.158
Nov-9719926,017,878,58748,737,783,084-0.171
Dec-97221,046,220,806,19947,555,491,191-0.025
Jan-98201,037,925,292,90251,896,264,6450.087
Feb-98191,081,705,333,39656,931,859,6520.093
Mar-98221,259,994,685,46757,272,485,7030.006
Apr-98211,298,494,359,25361,833,064,7260.077
May-98201,110,221,658,99555,511,082,950-0.108
Jun-98221,243,779,791,91356,535,445,0870.018
Jul-98221,399,011,433,74863,591,428,8070.118
Aug-98211,307,501,463,44262,261,974,450-0.021
Sep-98211,352,428,235,08364,401,344,5280.034
Oct-98221,460,835,397,59866,401,608,9820.031
Nov-98201,298,403,768,06564,920,188,403-0.023
Dec-98221,442,697,787,30665,577,172,1500.010
Jan-99191,884,555,055,91099,187,108,2060.414
Feb-99191,656,058,202,76587,160,958,040-0.129
Mar-99231,908,967,664,07482,998,594,090-0.049
Apr-99212,177,601,770,622103,695,322,4110.223
May-99201,784,400,906,98789,220,045,349-0.150
Jun-99221,697,339,227,50377,151,783,068-0.145
Jul-99211,767,035,098,98684,144,528,5230.087
Aug-99221,692,907,150,72676,950,325,033-0.089
Sep-99211,730,505,881,17882,405,041,9610.068
Oct-99212,017,474,765,54296,070,226,9310.153
Nov-99212,348,374,009,334111,827,333,7780.152
Dec-99222,686,788,531,991122,126,751,4540.088
Jan-00203,057,831,397,113152,891,569,8560.225
Feb-00202,973,119,888,063148,655,994,403-0.028
Mar-00234,135,152,366,234179,789,233,3150.190
Apr-00193,174,694,525,687167,089,185,562-0.073
May-00222,649,273,207,318120,421,509,424-0.328
Jun-00222,883,513,997,781131,068,818,0810.085
Jul-00202,804,753,395,361140,237,669,7680.068
Aug-00232,720,788,395,832118,295,147,645-0.170
Sep-00202,930,188,809,012146,509,440,4510.214
Oct-00223,485,926,307,727158,451,195,8060.078
Nov-00212,795,778,876,887133,132,327,471-0.174
Dec-00202,809,917,349,851140,495,867,4930.054
Jan-01213,143,501,125,244149,690,529,7740.063
Feb-01192,372,420,523,286124,864,238,068-0.181
Mar-01222,554,419,085,113116,109,958,414-0.073
Apr-01202,324,349,507,745116,217,475,3870.001
May-01222,353,179,388,303106,962,699,468-0.083
 
 
 
21

Jun-01212,111,922,113,236100,567,719,678-0.062
Jul-01212,004,384,034,55495,446,858,788-0.052
Aug-01231,803,565,337,79578,415,884,252-0.197
Sep-01151,573,484,946,383104,898,996,4260.291
Oct-01232,147,238,873,04493,358,211,871-0.117
Nov-01211,939,427,217,51892,353,677,025-0.011
Dec-01201,921,098,738,11396,054,936,9060.039
Jan-02212,149,243,312,432102,344,919,6400.063
Feb-02191,928,830,595,585101,517,399,768-0.008
Mar-02202,002,216,374,514100,110,818,726-0.014
Apr-02222,062,101,866,50693,731,903,023-0.066
May-02221,985,859,756,55790,266,352,571-0.038
Jun-02201,882,185,380,60994,109,269,0300.042
Jul-02222,349,564,490,189106,798,385,9180.126
Aug-02221,793,429,904,07981,519,541,095-0.270
Sep-02201,518,944,367,20475,947,218,360-0.071
Oct-02232,127,874,947,97292,516,302,0860.197
Nov-02201,780,816,458,12289,040,822,906-0.038
Dec-02211,561,092,215,64674,337,724,555-0.180
Jan-03211,723,698,830,41482,080,896,6860.099
Feb-03191,411,722,405,35774,301,179,229-0.100
Mar-03211,699,581,267,71880,932,441,3200.085
Apr-03211,759,751,025,27983,797,667,8700.035
May-03211,871,390,985,67889,113,856,4610.062
Jun-03212,122,225,077,345101,058,337,0160.126
Jul-03222,100,812,973,95695,491,498,816-0.057
Aug-03211,766,527,686,22484,120,366,011-0.127
Sep-03212,063,584,421,93998,265,924,8540.155
Oct-03232,331,850,083,022101,384,786,2180.031
Nov-03191,903,726,129,859100,196,112,098-0.012
Dec-03222,066,530,151,38393,933,188,699-0.065
Jan-04202,390,942,905,678119,547,145,2840.241
Feb-04192,177,765,594,701114,619,241,826-0.042
Mar-04232,613,808,754,550113,643,858,893-0.009
Apr-04212,418,663,760,191115,174,464,7710.013
May-04202,259,243,404,459112,962,170,223-0.019
Jun-04212,112,826,072,876100,610,765,375-0.116
Jul-04212,209,808,376,565105,228,970,3130.045
Aug-04222,033,343,354,64092,424,697,938-0.130
Sep-04211,993,803,487,74994,943,023,2260.027
Oct-04212,414,599,088,108114,980,908,9580.191
Nov-04212,577,513,374,160122,738,732,1030.065
Dec-04222,673,532,981,863121,524,226,448-0.010
Jan-05202,581,839,174,160129,091,958,7080.060
Feb-05192,532,202,396,053133,273,810,3190.032
Mar-05223,030,474,095,010137,748,822,5000.033
Apr-05212,906,386,858,222138,399,374,2010.005
May-05212,697,406,551,792128,447,931,038-0.075
Jun-05222,825,792,932,509128,445,133,2960.000
Jul-05202,603,995,025,602130,199,751,2800.014
Aug-05232,846,109,434,770123,743,888,468-0.051
Sep-05213,009,608,583,531143,314,694,4540.147
Oct-05213,279,930,784,463156,187,180,2130.086
Nov-05213,163,288,362,669150,632,779,175-0.036
Dec-05213,090,218,506,716147,153,262,225-0.023
Jan-06203,573,306,111,973178,665,305,5990.194
Feb-06193,313,973,129,190174,419,638,378-0.024
 
 
22

 
23
Mar-06233,807,374,752,084165,538,032,699-0.052
Apr-06193,257,448,631,999171,444,664,8420.035
May-06224,206,452,683,345191,202,394,6970.109
Jun-06223,993,966,132,543181,543,915,116-0.052
Jul-06203,339,657,248,277166,982,862,414-0.084
Aug-06233,410,343,285,403148,275,795,018-0.119
Sep-06203,407,481,301,776170,374,065,0890.139
Oct-06223,980,061,341,623180,911,879,1650.060
Nov-06213,933,440,096,959187,306,671,2840.035
Dec-06203,715,147,836,319185,757,391,816-0.008
Jan-07204,264,649,474,786213,232,473,7390.138
Feb-07193,950,170,956,843207,903,734,571-0.025
Mar-07225,243,560,316,501238,343,650,7500.137
Apr-0720243,433,544,6094,868,670,892,189
May-0722248,632,134,5455,469,906,959,979
Jun-0721253,941,741,7905,332,776,577,584
Jul-0721259,364,737,1505,446,659,480,150
264,903,542,0606,092,781,467,373
270,560,629,6635,140,651,963,603
276,338,525,9206,355,786,096,164
282,239,810,7325,927,036,025,374
288,267,119,0955,765,342,381,910
294,423,142,2786,182,885,987,831
300,710,629,0196,014,212,580,378
307,132,386,7596,142,647,735,187
313,691,282,8936,901,208,223,647
320,390,246,0486,728,195,167,003
327,232,267,3936,871,877,615,256
334,220,401,9767,352,848,843,471
341,357,770,0847,168,513,171,771
348,647,558,6417,321,598,731,463
Aug-0723
Sep-0719
Oct-0723
Nov-0721
Dec-0720
Jan-0821
Feb-0820
Mar-0820
Apr-0822
May-0821
Jun-0821
Jul-0822
Aug-0821
Sep-0821

Figure B.
Aggregate Dollar Amount of Sales Subject to Exchange Act Sections 31(b) and 31(c)
1
Methodology Developed in Consultation With OMB and CBO
(Dashed Line Indicates Forecast Values)
$
$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000
Mar-97
Mar-98
Mar-99
Mar-00
Mar-01
Mar-02
Mar-03
Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Dollar Value,
$Billions
1
Forecasted line is not smooth because the number of trading days varies by month.
October 2007
 
 
24

SECURITIES AND EXCHANGE COMMISSION  

[Release Nos. 33-8794; 34-55682 / April 30, 2007 
 
Order Making Fiscal Year 2008 Annual Adjustments to the Fee Rates Applicable 
under Section 6(b) of the Securities Act of 1933 and Sections 13(e), 14(g), 31(b), and 
31(c) of the Securities Exchange Act of 1934 
 
I. Background 

The Commission collects fees under various provisions of the securities laws.  

Section 6(b) of the Securities Act of 1933 (“Securities Act”) requires the Commission to 

collect fees from issuers on the registration of securities.1  Section 13(e) of the Securities 

Exchange Act of 1934 (“Exchange Act”) requires the Commission to collect fees on 

specified repurchases of securities.2  Section 14(g) of the Exchange Act requires the 

Commission to collect fees on proxy solicitations and statements in corporate control 

transactions.3  Finally, Sections 31(b) and (c) of the Exchange Act require national 

securities exchanges and national securities associations, respectively, to pay fees to the 

Commission on transactions in specified securities.4   

The Investor and Capital Markets Fee Relief Act (“Fee Relief Act”)5 amended 

Section 6(b) of the Securities Act and Sections 13(e), 14(g), and 31 of the Exchange Act 

to require the Commission to make annual adjustments to the fee rates applicable under 

                                                 
1  15 U.S.C. 77f(b). 
 
2  15 U.S.C. 78m(e). 
 
3  15 U.S.C. 78n(g). 
 
4  15 U.S.C. 78ee(b) and (c).  In addition, Section 31(d) of the Exchange Act requires the 

Commission to collect assessments from national securities exchanges and national securities 
associations for round turn transactions on security futures.  15 U.S.C. 78ee(d). 

 
5  Pub. L. No. 107-123, 115 Stat. 2390 (2002). 



these sections for each of the fiscal years 2003 through 2011, and one final adjustment to 

fix the fee rates under these sections for fiscal year 2012 and beyond.6

II. Fiscal Year 2008 Annual Adjustment to the Fee Rates Applicable under 
Section 6(b) of the Securities Act and Sections 13(e) and 14(g) of the 
Exchange Act 

 
 Section 6(b)(5) of the Securities Act requires the Commission to make an annual 

adjustment to the fee rate applicable under Section 6(b) of the Securities Act in each of 

the fiscal years 2003 through 2011.7  In those same fiscal years, Sections 13(e)(5) and 

14(g)(5) of the Exchange Act require the Commission to adjust the fee rates under 

Sections 13(e) and 14(g) to a rate that is equal to the rate that is applicable under Section 

6(b).  In other words, the annual adjustment to the fee rate under Section 6(b) of the 

Securities Act also sets the annual adjustment to the fee rates under Sections 13(e) and 

14(g) of the Exchange Act. 

Section 6(b)(5) sets forth the method for determining the annual adjustment to the 

fee rate under Section 6(b) for fiscal year 2008.  Specifically, the Commission must 

adjust the fee rate under Section 6(b) to a “rate that, when applied to the baseline estimate 

of the aggregate maximum offering prices for [fiscal year 2008], is reasonably likely to 

produce aggregate fee collections under [Section 6(b)] that are equal to the target 

offsetting collection amount for [fiscal year 2008].”  That is, the adjusted rate is 

                                                 
6  See 15 U.S.C. 77f(b)(5), 77f(b)(6), 78m(e)(5), 78m(e)(6), 78n(g)(5), 78n(g)(6), 78ee(j)(1), and 

78ee(j)(3).  Section 31(j)(2) of the Exchange Act, 15 U.S.C. 78ee(j)(2), also requires the 
Commission, in specified circumstances, to make a mid-year adjustment to the fee rates under 
Sections 31(b) and (c) of the Exchange Act in fiscal years 2002 through 2011. 

 
7  The annual adjustments are designed to adjust the fee rate in a given fiscal year so that, when 

applied to the aggregate maximum offering price at which securities are proposed to be offered for 
the fiscal year, it is reasonably likely to produce total fee collections under Section 6(b) equal to 
the “target offsetting collection amount” specified in Section 6(b)(11)(A) for that fiscal year. 

 

  2



determined by dividing the “target offsetting collection amount” for fiscal year 2008 by 

the “baseline estimate of the aggregate maximum offering prices” for fiscal year 2008. 

 Section 6(b)(11)(A) specifies that the “target offsetting collection amount” for 

fiscal year 2008 is $234,000,000.8  Section 6(b)(11)(B) defines the “baseline estimate of 

the aggregate maximum offering price” for fiscal year 2008 as “the baseline estimate of 

the aggregate maximum offering price at which securities are proposed to be offered 

pursuant to registration statements filed with the Commission during [fiscal year 2008] as 

determined by the Commission, after consultation with the Congressional Budget Office 

and the Office of Management and Budget . . . .” 

 To make the baseline estimate of the aggregate maximum offering price for fiscal 

year 2008, the Commission is using the same methodology it developed in consultation 

with the Congressional Budget Office (“CBO”) and Office of Management and Budget 

(“OMB”) to project aggregate offering price for purposes of the fiscal year 2007 annual 

adjustment.  Using this methodology, the Commission determines the “baseline estimate 

of the aggregate maximum offering price” for fiscal year 2008 to be 

$5,959,775,433,491.9  Based on this estimate, the Commission calculates the fee rate for 

                                                 
8  Congress determined the target offsetting collection amounts by applying reduced fee rates to the 

CBO’s January 2001 projections of the aggregate maximum offering prices for fiscal years 2002 
through 2011.  In any fiscal year through fiscal year 2011, the annual adjustment mechanism will 
result in additional fee rate reductions if the CBO’s January 2001 projection of the aggregate 
maximum offering prices for the fiscal year proves to be too low, and fee rate increases if the 
CBO’s January 2001 projection of the aggregate maximum offering prices for the fiscal year 
proves to be too high. 

 
9  Appendix A explains how we determined the “baseline estimate of the aggregate maximum 

offering price” for fiscal year 2008 using our methodology, and then shows the purely arithmetical 
process of calculating the fiscal year 2008 annual adjustment based on that estimate.  The 
appendix includes the data used by the Commission in making its “baseline estimate of the 
aggregate maximum offering price” for fiscal year 2008. 

 

  3



fiscal 2008 to be $39.30 per million.  This adjusted fee rate applies to Section 6(b) of the 

Securities Act, as well as to Sections 13(e) and 14(g) of the Exchange Act.  

III. Fiscal Year 2008 Annual Adjustment to the Fee Rates Applicable under 
Sections 31(b) and (c) of the Exchange Act 

 
Section 31(b) of the Exchange Act requires each national securities exchange to 

pay the Commission a fee at a rate, as adjusted by our order pursuant to Section 

31(j)(2),10 which currently is $15.30 per million of the aggregate dollar amount of sales 

of specified securities transacted on the exchange.  Similarly, Section 31(c) requires each 

national securities association to pay the Commission a fee at the same adjusted rate on 

the aggregate dollar amount of sales of specified securities transacted by or through any 

member of the association otherwise than on an exchange.  Section 31(j)(1) requires the 

Commission to make annual adjustments to the fee rates applicable under Sections 31(b) 

and (c) for each of the fiscal years 2003 through 2011.11   

Section 31(j)(1) specifies the method for determining the annual adjustment for 

fiscal year 2008.  Specifically, the Commission must adjust the rates under Sections 31(b) 

and (c) to a “uniform adjusted rate that, when applied to the baseline estimate of the 

aggregate dollar amount of sales for [fiscal year 2008], is reasonably likely to produce 

aggregate fee collections under [Section 31] (including assessments collected under 

                                                 
10  Order Making Fiscal Year 2007 Annual Adjustments to the Fee Rates Applicable under Section 

6(b) of the Securities Act of 1933 and Sections 13(e), 14(g), 31(b) and 31(c) of the Securities 
Exchange Act of 1934, Rel. No. 33-8681 (April 28, 2006), 71 FR 26132 (May 3, 2006). 

 
11  The annual adjustments, as well as the mid-year adjustments required in specified circumstances 

under Section 31(j)(2) in fiscal years 2002 through 2011, are designed to adjust the fee rates in a 
given fiscal year so that, when applied to the aggregate dollar volume of sales for the fiscal year, 
they are reasonably likely to produce total fee collections under Section 31 equal to the “target 
offsetting collection amount” specified in Section 31(l)(1) for that fiscal year. 

 

  4



[Section 31(d)]) that are equal to the target offsetting collection amount for [fiscal year 

2008].”   

Section 31(l)(1) specifies that the “target offsetting collection amount” for fiscal 

year 2008 is $892,000,000.12  Section 31(l)(2) defines the “baseline estimate of the 

aggregate dollar amount of sales” as “the baseline estimate of the aggregate dollar 

amount of sales of securities . . . to be transacted on each national securities exchange and 

by or through any member of each national securities association (otherwise than on a 

national securities exchange) during [fiscal year 2008] as determined by the Commission, 

after consultation with the Congressional Budget Office and the Office of Management 

and Budget . . . .”  

To make the baseline estimate of the aggregate dollar amount of sales for fiscal 

year 2008, the Commission is using the same methodology it developed in consultation 

with the CBO and OMB to project dollar volume for purposes of prior fee adjustments.13  

Using this methodology, the Commission calculates the baseline estimate of the 

aggregate dollar amount of sales for fiscal year 2008 to be $78,732,152,559,457.  Based 

on this estimate, and an estimated collection of $18,017 in assessments on security 

                                                 
12  Congress determined the target offsetting collection amounts by applying reduced fee rates to the 

CBO’s January 2001 projections of dollar volume for fiscal years 2002 through 2011.  In any 
fiscal year through fiscal year 2011, the annual and, in specified circumstances, mid-year 
adjustment mechanisms will result in additional fee rate reductions if the CBO’s January 2001 
projection of dollar volume for the fiscal year proves to be too low, and fee rate increases if the 
CBO’s January 2001 projection of dollar volume for the fiscal year proves to be too high. 

 
13  Appendix B explains how we determined the “baseline estimate of the aggregate dollar amount of 

sales” for fiscal year 2007 using our methodology, and then shows the purely arithmetical process 
of calculating the fiscal year 2007 annual adjustment based on that estimate.  The appendix also 
includes the data used by the Commission in making its “baseline estimate of the aggregate dollar 
amount of sales” for fiscal year 2007.   

 

  5



futures transactions under Section 31(d) in fiscal year 2008, the uniform adjusted rate for 

fiscal year 2008 is 11.00 per million.14

IV. Effective Dates of the Annual Adjustments 

 Section 6(b)(8)(A) of the Securities Act provides that the fiscal year 2008 annual 

adjustment to the fee rate applicable under Section 6(b) of the Securities Act shall take 

effect on the later of October 1, 2007, or five days after the date on which a regular 

appropriation to the Commission for fiscal year 2008 is enacted.15  Section 13(e)(8)(A) 

and 14(g)(8)(A) of the Exchange Act provide for the same effective date for the annual 

adjustments to the fee rates applicable under Sections 13(e) and 14(g) of the Exchange 

Act.16

 Section 31(j)(4)(A) of the Exchange Act provides that the fiscal year 2008 annual 

adjustments to the fee rates applicable under Sections 31(b) and (c) of the Exchange Act 

shall take effect on the later of October 1, 2007, or 30 days after the date on which a 

regular appropriation to the Commission for fiscal year 2008 is enacted. 

V. Conclusion 

Accordingly, pursuant to Section 6(b) of the Securities Act and Sections 13(e), 

14(g), and 31 of the Exchange Act,17  

IT IS HEREBY ORDERED that the fee rates applicable under Section 6(b) of the 

Securities Act and Sections 13(e) and 14(g) of the Exchange Act shall be $39.30 per 

                                                 
14  The calculation of the adjusted fee rate assumes that the current fee rate of $15.30 per million will 

apply through October 31, 2007, due to the operation of the effective date provision contained in 
Section 31(j)(4)(A) of the Exchange Act. 

 
15  15 U.S.C. 77f(b)(8)(A). 
 
16  15 U.S.C. 78m(e)(8)(A) and 78n(g)(8)(A). 
 
17  15 U.S.C. 77f(b), 78m(e), 78n(g), and 78ee(j). 

  6



million effective on the later of October 1, 2007, or five days after the date on which a 

regular appropriation to the Commission for fiscal year 2008 is enacted; and 

IT IS FURTHER ORDERED that the fee rates applicable under Sections 31(b) 

and (c) of the Exchange Act shall be $11.00 per million effective on the later of October 

1, 2007, or 30 days after the date on which a regular appropriation to the Commission for 

fiscal year 2008 is enacted. 

 

By the Commission.  

 

Nancy M. Morris  
Secretary 

  7



APPENDIX A 

With the passage of the Investor and Capital Markets Relief Act, Congress has, 

among other things, established a target amount of monies to be collected from fees 

charged to issuers based on the value of their registrations.  This appendix provides the 

formula for determining such fees, which the Commission adjusts annually.  Congress 

has mandated that the Commission determine these fees based on the “aggregate 

maximum offering prices,” which measures the aggregate dollar amount of securities 

registered with the Commission over the course of the year.  In order to maximize the 

likelihood that the amount of monies targeted by Congress will be collected, the fee rate 

must be set to reflect projected aggregate maximum offering prices.  As a percentage, the 

fee rate equals the ratio of the target amounts of monies to the projected aggregate 

maximum offering prices. 

For 2008, the Commission has estimated the aggregate maximum offering prices 

by projecting forward the trend established in the previous decade.  More specifically, an 

ARIMA model was used to forecast the value of the aggregate maximum offering prices 

for months subsequent to March 2007, the last month for which the Commission has data 

on the aggregate maximum offering prices. 

The following sections describe this process in detail. 

A. Baseline estimate of the aggregate maximum offering prices for fiscal year 2008. 

First, calculate the aggregate maximum offering prices (AMOP) for each month 

in the sample (March 1997 - March 2007).  Next, calculate the percentage change in the 

AMOP from month to month. 

 

  8



Model the monthly percentage change in AMOP as a first order moving average 

process.  The moving average approach allows one to model the effect that an 

exceptionally high (or low) observation of AMOP tends to be followed by a more 

“typical” value of AMOP. 

Use the estimated moving average model to forecast the monthly percent change 

in AMOP.  These percent changes can then be applied to obtain forecasts of the total 

dollar value of registrations.  The following is a more formal (mathematical) description 

of the procedure: 

1. Begin with the monthly data for AMOP.  The sample spans ten years, from March 

1997 to March 2007. 

2. Divide each month’s AMOP (column C) by the number of trading days in that month 

(column B) to obtain the average daily AMOP (AAMOP, column D). 

3. For each month t, the natural logarithm of AAMOP is reported in column E. 

4. Calculate the change in log(AAMOP) from the previous month as            

Δt = log (AAMOPt) – log(AAMOPt-1).  This approximates the percentage change. 

5. Estimate the first order moving average model Δt = α + βet-1 + et, where et denotes the 

forecast error for month t.  The forecast error is simply the difference between the 

one-month ahead forecast and the actual realization of Δt.  The forecast error is 

expressed as et = Δt – α – βet-1.  The model can be estimated using standard 

commercially available software such as SAS or Eviews.  Using least squares, the 

estimated parameter values are α=0.00781 and β=−0.76766. 

  9



6. For the month of April 2007 forecast Δt = 4/07 = α + βet = 3/07.  For all subsequent 

months, forecast Δt = α. 

7. Calculate forecasts of log(AAMOP).  For example, the forecast of log(AAMOP) for 

June 2007 is given by FLAAMOP t = 6/07 = log(AAMOP t = 3/07) + Δ t = 4/07 +Δ t = 5/07 +   

Δ t = 6/07. 

8. Under the assumption that et is normally distributed, the n-step ahead forecast of 

AAMOP is given by exp(FLAAMOPt + σn
2/2), where σn denotes the standard error 

of the n-step ahead forecast.  

9. For June 2007, this gives a forecast AAMOP of $21.2 Billion (Column I), and a 

forecast AMOP of $444.9 Billion (Column J). 

10. Iterate this process through September 2008 to obtain a baseline estimate of the 

aggregate maximum offering prices for fiscal year 2008 of $5,959,775,433,491. 

B. Using the forecasts from A to calculate the new fee rate. 

1. Using the data from Table A, estimate the aggregate maximum offering prices 

between 10/1/07 and 9/30/08 to be $5,959,775,433,491. 

2. The rate necessary to collect the target $234,000,000 in fee revenues set by Congress 

is then calculated as:  $234,000,000 ÷ $5,959,775,433,491 = 0.00003926 (or $39.30 

per million.). 

  10



Table A. Estimation of baseline of aggregate maximum offering prices .

Fee rate calculation.
a. Baseline estimate of the aggregate maximum offering prices, 10/1/07 to 9/30/08 ($Millions) 5,959,775
b. Implied fee rate ($234 Million / a) $39.30

Data
(A) (B) (C) (D) (E) (F) (G) (H) (I) (J)

Month # of Trading Days 
in Month

Aggregate 
Maximum Offering 
Prices, in $Millions

Average Daily 
Aggregate Max. 
Offering Prices 

(AAMOP) in 
$Millions

log(AAMOP) Change in 
AAMOP

Forecast 
log(AAMOP) Standard Error Forecast AAMOP, 

in $Millions

Forecast 
Aggregate 

Maximum Offering 
Prices, in $Millions

Mar-97 20 140,809 7,040 22.675
Apr-97 22 182,657 8,303 22.840 0.165
May-97 21 163,702 7,795 22.777 -0.063
Jun-97 21 162,111 7,720 22.767 -0.010
Jul-97 22 168,007 7,637 22.756 -0.011
Aug-97 21 153,705 7,319 22.714 -0.042
Sep-97 21 179,559 8,550 22.869 0.155
Oct-97 23 260,719 11,336 23.151 0.282
Nov-97 19 219,618 11,559 23.171 0.020
Dec-97 22 228,605 10,391 23.064
Jan-98 20 228,030 11,402 23.157
Feb-98 19 250,266 13,172 23.301
Mar-98 22 378,185 17,190 23.568
Apr-98 21 242,310 11,539 23.169 -0.399
May-98 20 298,454 14,923 23.426 0.257
Jun-98 22 328,994 14,954 23.428 0.002
Jul-98 22 272,957 12,407 23.242 -0.187
Aug-98 21 392,104 18,672 23.650 0.409
Sep-98 21 325,144 15,483 23.463 -0.187
Oct-98 22 139,786 6,354 22.572 -0.891
Nov-98 20 269,065 13,453 23.322 0.750
Dec-98 22 248,596 11,300 23.148 -0.174
Jan-99 19 253,448 13,339 23.314 0.166
Feb-99 19 217,433 11,444 23.161 -0.153
Mar-99 23 415,145 18,050 23.616 0.456
Apr-99 21 431,280 20,537 23.746 0.129
May-99 20 229,082 11,454 23.162 -0.584

  11



Jun-99 22 367,943 16,725 23.540 0.379
Jul-99 21 332,623 15,839 23.486 -0.054
Aug-99 22 240,157 10,916 23.114 -0.372
Sep-99 21 236,011 11,239 23.143 0.029
Oct-99 21 216,883 10,328 23.058 -0.085
Nov-99 21 372,582 17,742 23.599 0.541
Dec-99 22 319,846 14,538 23.400 -0.199
Jan-00 20 282,165 14,108 23.370 -0.030
Feb-00 20 665,367 33,268 24.228 0.858
Mar-00 23 550,107 23,918 23.898 -0.330
Apr-00 19 244,510 12,869 23.278 -0.620
May-00 22 269,774 12,262 23.230 -0.048
Jun-00 22 406,409 18,473 23.640 0.410
Jul-00 20 230,894 11,545 23.169 -0.470
Aug-00 23 257,797 11,209 23.140 -0.030
Sep-00 20 332,120 16,606 23.533 0.393
Oct-00 22 362,493 16,477 23.525 -0.008
Nov-00 21 317,653 15,126 23.440 -0.086
Dec-00 20 246,006 12,300 23.233 -0.207
Jan-01 21 462,726 22,035 23.816 0.583
Feb-01 19 388,304 20,437 23.741 -0.075
Mar-01 22 523,443 23,793 23.893 0.152
Apr-01 20 289,212 14,461 23.395 -0.498
May-01 22 274,298 12,468 23.246 -0.148
Jun-01 21 348,268 16,584 23.532 0.285
Jul-01 21 264,590 12,600 23.257 -0.275
Aug-01 23 245,591 10,678 23.091 -0.165
Sep-01 15 178,524 11,902 23.200 0.108
Oct-01 23 260,719 11,336 23.151 -0.049
Nov-01 21 286,199 13,629 23.335 0.184
Dec-01 20 395,230 19,762 23.707 0.372
Jan-02 21 401,290 19,109 23.673 -0.034
Feb-02 19 476,837 25,097 23.946 0.273
Mar-02 20 380,160 19,008 23.668 -0.278  

  12



Apr-02 22 282,947 12,861 23.277 -0.391
May-02 22 215,645 9,802 23.006 -0.272
Jun-02 20 277,757 13,888 23.354 0.348
Jul-02 22 208,638 9,484 22.973 -0.381
Aug-02 22 265,750 12,080 23.215 0.242
Sep-02 20 109,565 5,478 22.424 -0.791
Oct-02 23 179,374 7,799 22.777 0.353
Nov-02 20 243,590 12,179 23.223 0.446
Dec-02 21 212,838 10,135 23.039 -0.184
Jan-03 21 201,839 9,611 22.986 -0.053
Feb-03 19 144,642 7,613 22.753 -0.233
Mar-03 21 444,331 21,159 23.775 1.022
Apr-03 21 142,373 6,780 22.637 -1.138
May-03 21 328,792 15,657 23.474 0.837
Jun-03 21 281,580 13,409 23.319 -0.155
Jul-03 22 304,383 13,836 23.351 0.031
Aug-03 21 328,351 15,636 23.473 0.122
Sep-03 21 459,563 21,884 23.809 0.336
Oct-03 23 285,039 12,393 23.240 -0.569
Nov-03 19 257,779 13,567 23.331 0.091
Dec-03 22 244,998 11,136 23.133 -0.197
Jan-04 20 369,784 18,489 23.640 0.507
Feb-04 19 221,517 11,659 23.179 -0.461
Mar-04 23 448,543 19,502 23.694 0.514
Apr-04 21 260,029 12,382 23.240 -0.454
May-04 20 227,239 11,362 23.154 -0.086
Jun-04 21 370,668 17,651 23.594 0.441
Jul-04 21 305,519 14,549 23.401 -0.193
Aug-04 22 179,688 8,168 22.823 -0.577
Sep-04 21 357,007 17,000 23.556 0.733
Oct-04 21 254,489 12,119 23.218 -0.338
Nov-04 21 363,406 17,305 23.574 0.356
Dec-04 22 570,918 25,951 23.979 0.405
Jan-05 20 375,484 18,774 23.656 -0.324

  13



Feb-05 19 338,922 17,838 23.605 -0.051
Mar-05 22 590,862 26,857 24.014 0.409
Apr-05 21 282,018 13,429 23.321 -0.693
May-05 21 323,652 15,412 23.458 0.138
Jun-05 22 517,022 23,501 23.880 0.422
Jul-05 20 457,487 22,874 23.853 -0.027
Aug-05 23 605,534 26,328 23.994 0.141
Sep-05 21 312,281 14,871 23.423 -0.571
Oct-05 21 258,956 12,331 23.235 -0.187
Nov-05 21 192,736 9,178 22.940 -0.295
Dec-05 21 308,134 14,673 23.409 0.469
Jan-06 20 526,550 26,328 23.994 0.585
Feb-06 19 301,446 15,866 23.487 -0.506
Mar-06 23 1,211,344 52,667 24.687 1.200
Apr-06 19 407,345 21,439 23.788 -0.899
May-06 22 260,121 11,824 23.193 -0.595
Jun-06 22 375,296 17,059 23.560 0.367
Jul-06 20 232,654 11,633 23.177 -0.383
Aug-06 23 310,050 13,480 23.325 0.147
Sep-06 20 236,782 11,839 23.195 -0.130
Oct-06 22 213,342 9,697 22.995 -0.200
Nov-06 21 292,456 13,926 23.357 0.362
Dec-06 20 349,512 17,476 23.584 0.227
Jan-07 20 372,740 18,637 23.648 0.064
Feb-07 19 278,753 14,671 23.409 -0.239
Mar-07 22 862,786 39,218 24.392 0.983
Apr-07 20 23.694 0.348 20,722 414,450
May-07 22 23.702 0.357 20,954 460,977
Jun-07 21 23.709 0.366 21,187 444,929
Jul-07 21 23.717 0.375 21,423 449,890
Aug-07 23 23.725 0.384 21,662 498,230
Sep-07 19 23.733 0.392 21,904 416,170
Oct-07 23 23.741 0.401 22,148 509,401
Nov-07 21 23.749 0.409 22,395 470,291

  14



Dec-07 20 23.756 0.417 22,644 452,890
Jan-08 21 23.764 0.424 22,897 480,836
Feb-08 20 23.772 0.432 23,152 463,044
Mar-08 20 23.780 0.440 23,410 468,207
Apr-08 22 23.788 0.447 23,671 520,769
May-08 21 23.795 0.454 23,935 502,640
Jun-08 21 23.803 0.461 24,202 508,244
Jul-08 22 23.811 0.468 24,472 538,382
Aug-08 21 23.819 0.475 24,745 519,640
Sep-08 21 23.827 0.482 25,021 525,433

  15



Figure A 
Aggregate Maximum Offering Prices Subject to Securities Act Section 6(b)

(Dashed Line Indicates Forecast Values)

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

Dollar Value,
$Billions

O
ct

ob
er

 2
00

6

  16



APPENDIX B 

With the passage of the Investor and Capital Markets Relief Act, Congress has, among 

other things, established a target amount of monies to be collected from fees charged to investors 

based on the value of their transactions.  This appendix provides the formula for determining 

such fees, which the Commission adjusts annually, and may adjust semi-annually.18  In order to 

maximize the likelihood that the amount of monies targeted by Congress will be collected, the 

fee rate must be set to reflect projected dollar transaction volume on the securities exchanges and 

certain over-the-counter markets over the course of the year.  As a percentage, the fee rate equals 

the ratio of the target amounts of monies to the projected dollar transaction volume. 

For 2008, the Commission has estimated dollar transaction volume by projecting forward 

the trend established in the previous decade.  More specifically, dollar transaction volume was 

forecasted for months subsequent to March 2007, the last month for which the Commission has 

data on transaction volume.     

The following sections describe this process in detail. 

A. Baseline estimate of the aggregate dollar amount of sales for fiscal year 2008. 

First, calculate the average daily dollar amount of sales (ADS) for each month in the 

sample (March 1997 - March 2007).  The monthly aggregate dollar amount of sales (exchange 

plus certain over-the-counter markets) is presented in column C of Table B. 

Next, calculate the change in the natural logarithm of ADS from month to month.  The 

average monthly percentage growth of ADS over the entire sample is 0.014 and the standard 

deviation 0.115.  Assuming the monthly percentage change in ADS follows a random walk, 

                                                 
18  Congress requires that the Commission make a mid-year adjustment to the fee rate if four months into the 

fiscal year it determines that its forecasts of aggregate dollar volume are reasonably likely to be off by 10% 
or more. 

 17



calculating the expected monthly percentage growth rate for the full sample is straightforward.  

The expected monthly percentage growth rate of ADS is 2.1%.   

Now, use the expected monthly percentage growth rate to forecast total dollar volume.  

For example, one can use the ADS for March 2007 ($238,343,650,750) to forecast ADS for 

April 2007 ($243,433,544,609= $238,343,650,750 x 1.021) .19  Multiply by the number of 

trading days in April 2007 (20) to obtain a forecast of the total dollar volume for the month 

($4,868,670,892,189).  Repeat the method to generate forecasts for subsequent months. 

The forecasts for total dollar volume are in column G of Table B.  The following is a 

more formal (mathematical) description of the procedure: 

1. Divide each month’s total dollar volume (column C) by the number of trading days in that 

month (column B) to obtain the average daily dollar volume (ADS, column D). 

2. For each month t, calculate the change in ADS from the previous month as           

Δt = log (ADSt / ADSt-1), where log (x) denotes the natural logarithm of x. 

3. Calculate the mean and standard deviation of the series {Δ1, Δ2, … , Δ120}.  These are given 

by μ = 0.014 and σ = 0.115, respectively. 

4. Assume that the natural logarithm of ADS follows a random walk, so that Δs and Δt are 

statistically independent for any two months s and t.  

5. Under the assumption that Δt is normally distributed, the expected value of ADSt /ADSt-1 is 

given by exp (μ + σ2/2), or on average ADSt = 1.021 × ADSt-1. 

                                                 
19  The value 1.021 has been rounded.  All computations are done with the unrounded value. 

 18



6. For April 2007, this gives a forecast ADS of 1.021 × $238,343,650,750= $243,433,544,609. 

Multiply this figure by the 20 trading days in April 2007 to obtain a total dollar volume 

forecast of $4,868,670,892,189. 

7. For May 2007, multiply the April 2007 ADS forecast by 1.021 to obtain a forecast ADS of 

$248,632,134,545.  Multiply this figure by the 22 trading days in May 2007 to obtain a total 

dollar volume forecast of $5,469,906,959,979. 

8. Repeat this procedure for subsequent months. 

B. Using the forecasts from A to calculate the new fee rate. 

1. Use Table B to estimate fees collected for the period 10/1/07 through 10/31/07.  The 

projected aggregate dollar amount of sales for this period is $6,355,786,096,164.  Projected 

fee collections at the current fee rate of 0.0000153 are $97,243,527. 

2. Estimate the amount of assessments on securities futures products collected during 10/1/07 

and 9/30/08 to be $18,017 by projecting a 2.1% monthly increase from a base of $1,150 in 

March 2007. 

3. Subtract the amounts $97,243,527 and $18,017 from the target offsetting collection amount 

set by Congress of $892,000,000 leaving $794,738,456 to be collected on dollar volume for 

the period 11/1/07 through 9/30/08. 

4. Use Table B to estimate dollar volume for the period 11/1/07 through 9/30/08.  The estimate 

is $72,376,366,463,293.  Finally, compute the fee rate required to produce the additional 

$794,738,456 in revenue.  This rate is $794,738,456 divided by $72,376,366,463,293 or 

0.0000109806. 

 19



 

5. Round the result to the seventh decimal point, yielding a rate of .0000110 (or $11.00 per 

million). 

 20Table B. Estimation of baseline of the aggregate dollar amount of sales.

Fee rate calculation.
a. Baseline estimate of the aggregate dollar amount of sales, 10/1/07 to 10/31/07 ($Millions) 6,355,786
b. Baseline estimate of the aggregate dollar amount of sales, 11/1/07 to 9/30/08 ($Millions) 72,376,366
c. Estimated collections in assessments on securities futures products in FY 2008 ($Millions) 0.018
d. Implied fee rate (($892,000,000 - 0.0000153*a - c) /b) $11.0

Data
(A) (B) (C) (D) (E) (F) (G)

Month # of Trading Days in 
Month

Aggregate Dollar 
Amount of Sales

Average Daily Dollar 
Amount of Sales 

(ADS)
Change in LN of ADS Forecast ADS

Forecast Aggregate 
Dollar Amount of 

Sales
Mar-97 20 839,192,728,788 41,959,636,439 -
Apr-97 22 862,799,213,315 39,218,146,060 -0.068

May-97 21 925,733,852,647 44,082,564,412 0.117
Jun-97 21 930,409,085,859 44,305,194,565 0.005
Jul-97 22 1,085,682,706,898 49,349,213,950 0.108

Aug-97 21 1,031,344,138,751 49,111,625,655 -0.005
Sep-97 21 1,036,460,244,602 49,355,249,743 0.005
Oct-97 23 1,329,653,432,718 57,811,018,814 0.158
Nov-97 19 926,017,878,587 48,737,783,084 -0.171
Dec-97 22 1,046,220,806,199 47,555,491,191 -0.025
Jan-98 20 1,037,925,292,902 51,896,264,645 0.087
Feb-98 19 1,081,705,333,396 56,931,859,652 0.093
Mar-98 22 1,259,994,685,467 57,272,485,703 0.006
Apr-98 21 1,298,494,359,253 61,833,064,726 0.077

May-98 20 1,110,221,658,995 55,511,082,950 -0.108
Jun-98 22 1,243,779,791,913 56,535,445,087 0.018
Jul-98 22 1,399,011,433,748 63,591,428,807 0.118

Aug-98 21 1,307,501,463,442 62,261,974,450 -0.021
Sep-98 21 1,352,428,235,083 64,401,344,528 0.034
Oct-98 22 1,460,835,397,598 66,401,608,982 0.031
Nov-98 20 1,298,403,768,065 64,920,188,403 -0.023
Dec-98 22 1,442,697,787,306 65,577,172,150 0.010
Jan-99 19 1,884,555,055,910 99,187,108,206 0.414
Feb-99 19 1,656,058,202,765 87,160,958,040 -0.129
Mar-99 23 1,908,967,664,074 82,998,594,090 -0.049
Apr-99 21 2,177,601,770,622 103,695,322,411 0.223

May-99 20 1,784,400,906,987 89,220,045,349 -0.150
Jun-99 22 1,697,339,227,503 77,151,783,068 -0.145
Jul-99 21 1,767,035,098,986 84,144,528,523 0.087

Aug-99 22 1,692,907,150,726 76,950,325,033 -0.089
Sep-99 21 1,730,505,881,178 82,405,041,961 0.068
Oct-99 21 2,017,474,765,542 96,070,226,931 0.153
Nov-99 21 2,348,374,009,334 111,827,333,778 0.152
Dec-99 22 2,686,788,531,991 122,126,751,454 0.088
Jan-00 20 3,057,831,397,113 152,891,569,856 0.225
Feb-00 20 2,973,119,888,063 148,655,994,403 -0.028
Mar-00 23 4,135,152,366,234 179,789,233,315 0.190
Apr-00 19 3,174,694,525,687 167,089,185,562 -0.073

May-00 22 2,649,273,207,318 120,421,509,424 -0.328
Jun-00 22 2,883,513,997,781 131,068,818,081 0.085
Jul-00 20 2,804,753,395,361 140,237,669,768 0.068

Aug-00 23 2,720,788,395,832 118,295,147,645 -0.170
Sep-00 20 2,930,188,809,012 146,509,440,451 0.214
Oct-00 22 3,485,926,307,727 158,451,195,806 0.078
Nov-00 21 2,795,778,876,887 133,132,327,471 -0.174
Dec-00 20 2,809,917,349,851 140,495,867,493 0.054
Jan-01 21 3,143,501,125,244 149,690,529,774 0.063
Feb-01 19 2,372,420,523,286 124,864,238,068 -0.181
Mar-01 22 2,554,419,085,113 116,109,958,414 -0.073
Apr-01 20 2,324,349,507,745 116,217,475,387 0.001

May-01 22 2,353,179,388,303 106,962,699,468 -0.083  

 

 21



Jun-01 21 2,111,922,113,236 100,567,719,678 -0.062
Jul-01 21 2,004,384,034,554 95,446,858,788 -0.052

Aug-01 23 1,803,565,337,795 78,415,884,252 -0.197
Sep-01 15 1,573,484,946,383 104,898,996,426 0.291
Oct-01 23 2,147,238,873,044 93,358,211,871 -0.117
Nov-01 21 1,939,427,217,518 92,353,677,025 -0.011
Dec-01 20 1,921,098,738,113 96,054,936,906 0.039
Jan-02 21 2,149,243,312,432 102,344,919,640 0.063
Feb-02 19 1,928,830,595,585 101,517,399,768 -0.008
Mar-02 20 2,002,216,374,514 100,110,818,726 -0.014
Apr-02 22 2,062,101,866,506 93,731,903,023 -0.066

May-02 22 1,985,859,756,557 90,266,352,571 -0.038
Jun-02 20 1,882,185,380,609 94,109,269,030 0.042
Jul-02 22 2,349,564,490,189 106,798,385,918 0.126

Aug-02 22 1,793,429,904,079 81,519,541,095 -0.270
Sep-02 20 1,518,944,367,204 75,947,218,360 -0.071
Oct-02 23 2,127,874,947,972 92,516,302,086 0.197
Nov-02 20 1,780,816,458,122 89,040,822,906 -0.038
Dec-02 21 1,561,092,215,646 74,337,724,555 -0.180
Jan-03 21 1,723,698,830,414 82,080,896,686 0.099
Feb-03 19 1,411,722,405,357 74,301,179,229 -0.100
Mar-03 21 1,699,581,267,718 80,932,441,320 0.085
Apr-03 21 1,759,751,025,279 83,797,667,870 0.035

May-03 21 1,871,390,985,678 89,113,856,461 0.062
Jun-03 21 2,122,225,077,345 101,058,337,016 0.126
Jul-03 22 2,100,812,973,956 95,491,498,816 -0.057

Aug-03 21 1,766,527,686,224 84,120,366,011 -0.127
Sep-03 21 2,063,584,421,939 98,265,924,854 0.155
Oct-03 23 2,331,850,083,022 101,384,786,218 0.031
Nov-03 19 1,903,726,129,859 100,196,112,098 -0.012
Dec-03 22 2,066,530,151,383 93,933,188,699 -0.065
Jan-04 20 2,390,942,905,678 119,547,145,284 0.241
Feb-04 19 2,177,765,594,701 114,619,241,826 -0.042
Mar-04 23 2,613,808,754,550 113,643,858,893 -0.009
Apr-04 21 2,418,663,760,191 115,174,464,771 0.013

May-04 20 2,259,243,404,459 112,962,170,223 -0.019
Jun-04 21 2,112,826,072,876 100,610,765,375 -0.116
Jul-04 21 2,209,808,376,565 105,228,970,313 0.045

Aug-04 22 2,033,343,354,640 92,424,697,938 -0.130
Sep-04 21 1,993,803,487,749 94,943,023,226 0.027
Oct-04 21 2,414,599,088,108 114,980,908,958 0.191
Nov-04 21 2,577,513,374,160 122,738,732,103 0.065
Dec-04 22 2,673,532,981,863 121,524,226,448 -0.010
Jan-05 20 2,581,839,174,160 129,091,958,708 0.060
Feb-05 19 2,532,202,396,053 133,273,810,319 0.032
Mar-05 22 3,030,474,095,010 137,748,822,500 0.033
Apr-05 21 2,906,386,858,222 138,399,374,201 0.005

May-05 21 2,697,406,551,792 128,447,931,038 -0.075
Jun-05 22 2,825,792,932,509 128,445,133,296 0.000
Jul-05 20 2,603,995,025,602 130,199,751,280 0.014

Aug-05 23 2,846,109,434,770 123,743,888,468 -0.051
Sep-05 21 3,009,608,583,531 143,314,694,454 0.147
Oct-05 21 3,279,930,784,463 156,187,180,213 0.086
Nov-05 21 3,163,288,362,669 150,632,779,175 -0.036
Dec-05 21 3,090,218,506,716 147,153,262,225 -0.023
Jan-06 20 3,573,306,111,973 178,665,305,599 0.194
Feb-06 19 3,313,973,129,190 174,419,638,378 -0.024  

 22



 23

Mar-06 23 3,807,374,752,084 165,538,032,699 -0.052
Apr-06 19 3,257,448,631,999 171,444,664,842 0.035

May-06 22 4,206,452,683,345 191,202,394,697 0.109
Jun-06 22 3,993,966,132,543 181,543,915,116 -0.052
Jul-06 20 3,339,657,248,277 166,982,862,414 -0.084

Aug-06 23 3,410,343,285,403 148,275,795,018 -0.119
Sep-06 20 3,407,481,301,776 170,374,065,089 0.139
Oct-06 22 3,980,061,341,623 180,911,879,165 0.060
Nov-06 21 3,933,440,096,959 187,306,671,284 0.035
Dec-06 20 3,715,147,836,319 185,757,391,816 -0.008
Jan-07 20 4,264,649,474,786 213,232,473,739 0.138
Feb-07 19 3,950,170,956,843 207,903,734,571 -0.025
Mar-07 22 5,243,560,316,501 238,343,650,750 0.137
Apr-07 20 243,433,544,609 4,868,670,892,189

May-07 22 248,632,134,545 5,469,906,959,979
Jun-07 21 253,941,741,790 5,332,776,577,584
Jul-07 21 259,364,737,150 5,446,659,480,150

264,903,542,060 6,092,781,467,373
270,560,629,663 5,140,651,963,603
276,338,525,920 6,355,786,096,164
282,239,810,732 5,927,036,025,374
288,267,119,095 5,765,342,381,910
294,423,142,278 6,182,885,987,831
300,710,629,019 6,014,212,580,378
307,132,386,759 6,142,647,735,187
313,691,282,893 6,901,208,223,647
320,390,246,048 6,728,195,167,003
327,232,267,393 6,871,877,615,256
334,220,401,976 7,352,848,843,471
341,357,770,084 7,168,513,171,771
348,647,558,641 7,321,598,731,463

Aug-07 23
Sep-07 19
Oct-07 23
Nov-07 21
Dec-07 20
Jan-08 21
Feb-08 20
Mar-08 20
Apr-08 22

May-08 21
Jun-08 21
Jul-08 22

Aug-08 21
Sep-08 21



Figure B.
Aggregate Dollar Amount of Sales Subject to Exchange Act Sections 31(b) and 31(c)1

Methodology Developed in Consultation With OMB and CBO
(Dashed Line Indicates Forecast Values)

$

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08

Dollar Value,
$Billions

1Forecasted line is not smooth because the number of trading days varies by month.

O
ct

ob
er

 2
00

7

 

 24