§237-24.5 - Additional exemptions.

§237-24.5 Additional exemptions. (a)
In addition to the amounts exempt under section 237-24, this chapter shall not
apply to amounts received by:

(1) An exchange from:

(A) Transaction fees charged exchange members
by the exchange for:

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

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

(iii) Trade processing performed by an exchange
in matching trades, keypunching, record keeping, post cashiering, and
notarization;

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

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

(E) Participation in the communication network
consortium operated collectively by United States exchanges or other markets
recognized by the Securities and Exchange Commission, the Commodities Futures
Trading Commission, or similar regulatory authorities outside the United States
that provides last sale and quote securities information to subscribers or that
connects such markets or exchanges for purposes of data transmission;

(2) Exchange members by reason of executing a
securities or product transaction on an exchange; provided that this exemption
shall apply only to amounts received by exchange members from brokers or
dealers registered with the Securities and Exchange Commission, from futures
commission merchants, brokers, or associates registered with the Commodities
Futures Trading Commission, or from similar individuals or firms registered
with similar regulatory authorities outside the United States; and

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

(b) As used in this section:

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

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

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