Last week, the SEC solicited comments on a Nasdaq rule proposed August 25 that would modify the annual fees paid by domestic and foreign issuers listed on the exchange. American Depositary Receipts would not be impacted by the proposal
According to the proposal, the fee increases "are necessary to support the ongoing cost of issuer services and to fund future product and service investments." The cost of monitoring listed companies for compliance with the exchange's listing standards has also increased, Nasdaq said.
PROPOSED FEES
Shares Outstanding
Current
Proposed
Up to 10 million shares
$21,225
$24,500
10+ to 25 million shares
$26,500
$30,500
25+ to 50 million shares
$29,820
$34,500
50+ to 75 million shares
$39,150
$44,500
75+ to 100 million shares
$51,750
$61,750
Over 100 million shares
$60,000
$75,000
According to new rule, domestic and foreign issuers would see double-digit increases in fees, depending on their size. The largest of companies, with over 100 million shares outstanding, would see their fees increase 25 percent, from $60,000 to $75,000. The smallest companies, with under 10 million shares, would see fees increase 15 percent, from $21,225 to $24,500.
The fees were last raised in 2001.
SmallCap Affected
Fees would also increase for companies listed on the Nasdaq SmallCap Market, including domestic, foreign and ADRs. Fees would increase from a minimum of $15,000 and a maximum of $16,000, to a minimum of $17,500 and a maximum of $21,000.
In addition, the exchange proposes to eliminate the $2,000 fee that it chargest SmallCap companies that list additional classes of stock. Instead, Nasdaq would calculate the annual fee by aggregating shares for all issues, as is currently done on the Nasdaq National Market.
SmallCap fees last increased in 2003.
Pending SEC approval, Nasdaq would implement the proposed changes on January 1, 2005.
The complete rule proposal, as well as details on how to comment on the Nasdaq proposal, is available from the box above, right.
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