Recognizing that firms need to be able to act fast to compete in the multimarket trading environment, regulators are giving alternative trading systems exemptions from 45-day notice periods for prospective changes to their fee structures.

According to Friday’s OSC Bulletin, a couple of ATSs, TriAct Canada Marketplace LP and Liquidnet Canada Inc., have been given exemptions from the requirement to give regulators 45 days notice of changes to their fee structures.

It notes that the ATS maintain that the “current multi-market trading environment requires frequent changes to the fees and fee model to remain competitive and it has become unduly burdensome to delay 45 days before responding to participants’ needs.” They also say that a regulatory review of planned changes can take place faster.

The bulletin says that TriAct is seeking to make changes to its fee schedule on September 1, has consulted with the industry prior to arriving at the new fee model, and plans to provide notice prior to implementation. Liquidnet plans to introduce temporary fee promotions for a limited time, beginning Sept. 1; and would like to be able to offer similar promotions in the future without seeking regulatory approval each time.

The regulators granted the relief from the 45-day filing requirement, and provided relief from the regulatory fees they would be charged for making these applications. The ATSs point out that the notice period was created prior to multi-markets becoming a reality, “and in light of the current competitive environment and the limited and highly technical nature of the exemption being sought, it would be unduly onerous to pay fees in these circumstances.”

IE