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Flashback Friday sponsored by Instinet

Traders Magazine Online News, February 1, 2019

John D'Antona Jr.

Regulation – the one constant in an ever-changing market structure.

And it is prevalent in both the US and the Great North – where Traders Magazine turned its attention to for this Flashback Friday lookback. While many readers of Traders Magazine are US-based and trade US denominated securities that is not the only market observed. There is the inter-listed market shared by the North American countries and of course, the Great North that is Canada.

Canada’s market structure, while not as complex as its Southern cousin, is still complex and evolving like the US. Many of the same concerns are on Great North traders – access fees, rebates, as well as others.

Nick Savona, Chief Compliance Officer at Independent Trading Group, told Traders Magazine that one overriding initiative for the new Ontario Government (where ITG is domiciled) is deregulation and reducing red tape across the province in a number of industries.

“The OSC recently issued a notice seeking suggestions and comments on ways to further reduce unnecessary regulatory burden,” Savona said. “The (OSC) along with the Ministry of Finance, have established a Burden Reduction Task Force which I feel is going to be welcomed with open arms. The securities industry in Canada has made a significant effort over the last decade by moving to more Principles-based approach to regulation from a more Traditional approach. The intention of the regulatory amendments is not to lessen the requirements and expectations of compliance supervision, but rather to move away from a "one-size-fits-all" approach. Lessening the burden on market participants has and will continue to improve the framework to identify and address higher-risk areas and activities.” 

Another hot topic are access fees. Just like in the US, the regulatory eye has turned to the fees brokers and are passed on to traders and as in the US are coming under intense scrutiny. The Canadian Securities Administrators (CSA) has recently formally announced it was publishing for comment a proposed Trading Fee Rebate Pilot Study that would apply temporary pricing restrictions on marketplace transaction fees applicable to trading in certain securities. The CSA is publishing the Proposed Pilot for a 45-day comment period to solicit views.

“We are seeking comment on all issues raised in this notice, including the design of the Proposed Pilot that is contained in the Design Report, as well as the specific questions raised within it,” the CSA wrote.

For more information on related topics, visit the following channels:

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