The CSA today provided an update on their previously released consultation paper on real-time market data fees in Canada. That paper, published last year, sought input from marketplace participants and data consumers in respect of concerns that: (i) market data fees are too high; (ii) high fees are a result of participants being part of a "captive market"; and (iii) the process surrounding fee proposals and changes to fee models should be more transparent.
According to the CSA, the comments received were varied with respect to the approach to regulating real-time market data fees. Of the eight options proposed in the consultation paper, only two garnered some level of support: (i) limiting real-time market data fees charged by marketplaces until they reach an established activity level and (ii) publishing data fee proposals and changes to fee models for comment. Those two options, however, do not address concerns regarding the level of current fees that are above the threshold.
Ultimately, the CSA state that the two options on which commenters generally agreed, as well as the possibility of defining core data products that are needed to comply with regulatory requirements, should be explored further. The CSA also noted that as part of the review of the order protection rule, CSA staff will consider the impact of the OPR on fees. For more information, see CSA Staff Notice 21-312.