Options Regulatory Fee

A regulatory pass-through fee called the "Options Regulatory Fee" is a fee that national options exchanges assess their members in connection with options transactions. This fee varies by exchange and is based on a number of factors, including where an options trade is executed and whether the broker responsible for the trade is a member of a particular exchange.

Morgan Stanley Smith Barney calculates a blended rate based on the amount it is required to remit to the options exchanges. Effective for options orders settling on or after 1/30/2025, Morgan Stanley Smith Barney's blended rate is $0.0152 per option contract. This fee is rounded to the nearest penny. Please note the Options Regulatory Fee is subject to change.

This fee will appear on your trade confirmations as "OPT REG FEE," and will be reflected in both:

• Your estimated totals on order preview screens
• Totals for "commissions and fees" on transaction and order histories

The fees charged by Morgan Stanley Smith Barney related to a transaction for the account of Customer are designed to offset third-party fees generally charged to Morgan Stanley Smith Barney in respect of such transactions, including without limitation any regulatory or transaction fee or tax, market center fee, clearing house fee or depository fee, assessed by any regulatory authority, self-regulatory organization, market center, clearing house, clearing agency or depository, including without limitation the SEC, FINRA, any national securities exchange or other market center, DTC and NSCC. Morgan Stanley Smith Barney shall have the right to determine such fees in its reasonable discretion, and such fees may differ from or exceed the actual third-party fees properly paid by Morgan Stanley Smith Barney in connection with any transaction. These differences may be caused by various factors, including, among other things, the rounding methodology used by Morgan Stanley Smith Barney, the use of allocation accounts and transactions or settlement movements for which a fee may not be assessed, timing differences in changes, third-party rate caps and floors, calculation errors and various other anomalous reasons.