The consultation paper explains the CSA’s findings with respect to concerns raised by market participants in Canada about accessing real-time market data, which appears to be more expensive in Canada than in other jurisdictions. The concerns raised result from market fragmentation. Initial options include using standardized terminology to describe data products and how they are accessed, enhancing the transparency of any proposed fee changes by marketplaces, and reviewing the current methodology the CSA uses to allocate fees amongst marketplaces. Longer-term, the CSA is considering overhauling the whole regime by leveraging the current IP model or introducing an entirely new model for data consolidation.
Overview of the Council’s Comments:
The Council is highly supportive of the effort to bring greater transparency and accountability to the fees associated with accessing real-time market data (“RTMD”) in Canada.
Given the comparatively high price of accessing RTMD in our country, the Council supports efforts to place a reasonable cap on these fees. Specifically, the Council:
- prefers to see a model that cross-references fees in Canada with other international markets, like the United States, to evaluate the reasonableness of these fees.
- encourages substantive engagement and responsiveness to feedback in pursuit of fairness and the balancing of the many interests at play.
- encourages the inclusion of a diverse range of market participants and interested stakeholders in the formation of a new industry group to identify and standardize terms and definitions.
- recommends the adoption of a formal regulatory fee mechanism for non-professional subscriber fees and support the standardization of key terms and definitions for the access to, receipt, distribution, and use of RTMD products.
- recommends a review of the DFM model in Canada as to its fit for purpose.