The Canadian Securities Administrators (CSA) on Friday outlined its next steps regarding the consideration of a pilot study that would examine the impacts of reducing marketplace trading fee rebate payments.
Specifically, CSA says in a notice that it is talking with the U.S. Securities and Exchange Commission (SEC) about a co-ordinated study in both Canada and the United States.
Several years ago, the CSA proposed undertaking a study that would look at “maker-taker” fee models and the possibility of regulating these structures, as part of a series of market structure reforms.
The CSA did pursue the study amid concerns about the possible impact on Canadian markets, particularly given the large number of inter-listed stocks and the high degree of integration between U.S. and Canadian markets.
However, earlier this week, the U.S. Securities and Exchange Commission (SEC) proposed rules that would allow it to carry out its own pilot study on trading fee models.
“We have been engaged in dialogue with our U.S. colleagues on this issue and will continue to do so in the context of the publication of the proposed transaction fee pilot,” the CSA says in its notice. “As such, we will continue our discussions with SEC staff about coordinating the potential pilot studies, where appropriate.”
Should the CSA decide to pursue either its own study, or a co-ordinated study with the SEC, it would first publish a proposal for public comment, the notice says.
In the meantime, the CSA is seeking industry feedback on the idea of a Canadian pilot study.