§237-24.5  Additional exemptions.  (a) In addition to the amounts exempt under section 237-24, this chapter shall notapply to amounts received by:

(1)  An exchange from:

(A)  Transaction fees charged exchange membersby the exchange for:

(i)  The sale or purchase of securities orproducts, or both, bought or sold on an exchange by exchange members for theirown account or an account for which they have responsibility as an agent,broker, or fiduciary;

(ii)  Order book executions made for purposes ofeffecting transactions; and

(iii)  Trade processing performed by an exchangein matching trades, keypunching, record keeping, post cashiering, andnotarization;

(B)  Membership dues, fees, charges,assessments, and fines from individuals or firms, including charges for firmsymbols (member identification), application processing, registration,initiation, membership transfers, floor or post privileges, transaction timeextensions, expediting transactions, crossover trades (trading out of assignedfunctions) and rule infractions;

(C)  Service fees charged to members includingfees for communications, badges, forms, documents, and reports;

(D)  Listing fees and listing maintenance feescharged to companies that wish to be listed and have their securities orproducts traded on the exchange; and

(E)  Participation in the communication networkconsortium operated collectively by United States exchanges or other marketsrecognized by the Securities and Exchange Commission, the Commodities FuturesTrading Commission, or similar regulatory authorities outside the United Statesthat provides last sale and quote securities information to subscribers or thatconnects such markets or exchanges for purposes of data transmission;

(2)  Exchange members by reason of executing asecurities or product transaction on an exchange; provided that this exemptionshall apply only to amounts received by exchange members from brokers ordealers registered with the Securities and Exchange Commission, from futurescommission merchants, brokers, or associates registered with the CommoditiesFutures Trading Commission, or from similar individuals or firms registeredwith similar regulatory authorities outside the United States; and

(3)  Exchange members as proceeds from the sale of theirexchange memberships.

(b)  As used in this section:

"Exchange" means an exchange or boardof trade as defined in 15 United States Code section 78c(a)(1) or in 7 UnitedStates Code section 7, respectively, which is subject to regulation by theSecurities and Exchange Commission or the Commodities Futures TradingCommission or an organization subject to similar regulation under the laws of ajurisdiction outside the United States.

"Exchange member" means an individualor firm that is qualified by an exchange as a member and pays membership duesto an exchange in order to trade securities or products on an exchange.

"Securities" means securities asdefined in 15 United States Code section 78c and "products" meanscontracts of sale of commodities for future delivery, futures contracts,options, calls, puts, and similar rights as defined in 7 United States Codesection 2, which securities or products are permitted to be traded on anexchange. [L 1988, c 295, §1; am L 1989, c 118, §§2, 3; am L 1990, c 108, §1;am L 1997, c 107, §5]