Learn more about what the ASC is doing to support market participants and investors.
Jan 23, 2020
Toronto – The Canadian Securities Administrators (CSA) today published an update on its plan to proceed with the Trading Fee Rebate Pilot Study (the Pilot Study), which would analyze the effects of the prohibition of marketplace trading fee rebate payments on market participants. Proceeding with the Pilot Study is conditional on a similar study being implemented by the Securities and Exchange Commission in the United States (SEC Fee Pilot).
The Pilot Study would apply temporary pricing restrictions on marketplace trading fee rebates payable for transactions in a sample set of securities. The sample securities would include highly liquid and medium liquidity securities.
The Pilot Study, initially considered in a 2014 CSA notice, is part of the CSA’s plan to identify and address issues concerning trading fee rebates.
“We have heard from our stakeholders that it is important to test how marketplace trading fee rebates affect the behaviour of market participants,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “This study will help us to better understand and address potential issues associated with these rebates.”
The CSA would implement the Pilot Study in two stages. Stage one would involve interlisted securities in tandem with the SEC Fee Pilot, if possible. Stage two would take place three months later and would involve non-interlisted securities and exchange-traded products.
The timing and duration of the Pilot Study would coincide with the SEC Fee Pilot. A subsequent notice with the implementation orders will be published if, and when, the SEC Fee Pilot implementation date is announced.
The CSA would like to thank the United States Securities and Exchange Commission for their ongoing cooperation and support in coordinating the Pilot Study with the SEC Fee Pilot.
The design of the Pilot Study and information about its potential implementation are included in CSA Notice 23-325 Trading Fee Rebate Pilot Study, which can be found on CSA members’ websites.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
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For more information:
Kristen Rose Ontario Securities Commission 416-593-2336 firstname.lastname@example.org
Sylvain Théberge Autorité des marchés financiers 514-940-2176
Brian Kladko British Columbia Securities Commission 604-899-6713 email@example.com
Sara Wilson Financial and Consumer Services Commission, New Brunswick 506-643-7045
Renée Dyer Office of the Superintendent of Securities Newfoundland and Labrador 709-729-4909
Jeff Mason Nunavut Securities Office 867-975-6591
Shannon McMillan Financial and Consumer Affairs Authority of Saskatchewan 306-798-4160
Hilary McMeekin Alberta Securities Commission 403-592-8186
Jason Booth The Manitoba Securities Commission 204-945-1660
Janice Callbeck The Office of the Superintendent of Securities, P.E.I. 902-368-6288
David Harrison Nova Scotia Securities Commission 902-424-8586
Rhonda Horte Office of the Yukon Superintendent of Securities 867-667-5466
Tom Hall Office of the Superintendent of Securities, Northwest Territories 867-767-9305