NDAQ » Topics » Surveillance and Other Regulatory Charges from FINRA

This excerpt taken from the NDAQ 10-K filed Feb 27, 2009.

Surveillance and Other Regulatory Charges from FINRA

 

As noted above, FINRA provides regulatory services to The NASDAQ Stock Market, The NASDAQ Options Market and, once fully implemented in March 2009, the markets operated or regulated by NASDAQ OMX BX, including the regulation of trading activity and surveillance and investigative functions. FINRA charges us for these services based upon FINRA management’s estimated percentage of costs incurred by each FINRA department that are attributable directly to us.

 

The following table represents the composition of costs, primarily charged by FINRA to us, which are included in regulatory expense for 2008 and 2007 and support costs from related parties, net expense for 2006 in the Consolidated Statements of Income:

 

     Year Ended December 31,
     2008    2007    2006
     (in thousands)

Compensation and benefits

   $ 13,091    $ 14,167    $ 16,187

Professional and contract services

     11,048      7,211      8,133

Occupancy

     906      711      991

Computer operations and data communications

     1,057      2,317      2,447

Depreciation

     2,264      3,755      4,879

General, administrative and other

     577      704      1,134
                    

Total

   $ 28,943    $ 28,865    $ 33,771
                    

 

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