The Canadian Securities Administrators (CSA) is defending its efforts to oversee the provision of market data in response to a call from Toronto-based Aequitas NEO Exchange Inc. for the CSA to mandate access to consolidated market data for all investors — particularly retail investors and their investment advisors.
The CSA points out in a statement issued on Tuesday that it has worked to address concerns about market data in Canada: “This is a complex area that regulators globally have been considering for some time.”
The provincial regulators issued proposed rule changes in 2014 that sought to address concerns about market data fees, among other issues that were raised following a review of the Order Protection Rule, the CSA notes.
Furthermore, the CSA says it approved rule amendments and “finalized a methodology for the regulatory oversight of market data fees to provide a transparent process to benefit the marketplace and investors” this past April.
The CSA’s statement follows news that the federal Competition Bureau has discontinued an investigation into Toronto-based TMX Group Ltd. and its power over the pricing of market data that was sparked by a complaint from TMX rival NEO, which now wants action from the CSA instead.
“Mandating consolidated market data gives retail investors and investment advisors the tools they need to fairly participate,” says Jos Schmitt, president and CEO of NEO Exchange, in a statement. “I will keep saying this until I see the necessary and required movements to protect investors.”
See: Competition Bureau concludes investigation into market data complaint