The CSA today released a consultation paper that
considers real-time market data fees in Canada and seeks input on
addressing the issues identified by the regulators. The paper
specifically discusses three main concerns raised by
marketplace participants and data consumers, namely
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.
Ultimately, the paper concludes that while TSX and
TSX-V market data fees do not appear unreasonable,
marketplaces with smaller market shares are charging fees that are
high in relation to their share of trading activity. Meanwhile, the
paper suggests that the data fees charged by marketplaces in Canada
and the U.S. should ideally be closer. The CSA, however, recognize
that such an outcome may be unrealistic considering the differences
in regulatory environment, industry
