Economy & Markets

Revised fee schedule aims to boost liquidity

By James Langton |

 

Toronto Stock Exchange (TSX) on Monday announced changes to its fee schedule for trading ETFs, boosting certain fees and rebates, and cutting others.

The changes take effect Oct 1, subject to regulatory approval.

"The fee changes are intended to promote further differentiation in fees amongst competing markets in order to help stimulate the provision of liquidity, increase breadth of symbol coverage and tighten spreads for the benefit of active liquidity seeking orders," TSX says in an equities trading notice.

Upon implementation of the changes, active fees will rise to 0.17¢ from 0.15¢ for continuous ETF trading, and passive rebates will increase from 0.11¢ to 0.13¢ for the same trading.

Corresponding changes will also be made to continuous trading fees for ETFs applicable to TSX market makers, the exchange notes.

The changes also reduce passive fees for ‘post only' and ‘non-post only' orders on TSX Alpha Exchange, while maintaining active rebates at their current levels.

"This will result in a compression of the spread between active and passive fees relative to current levels," the TSX notice says.

TSX will monitor the impact of the changes on liquidity and market quality, the notice adds, which could lead to further changes to the fee schedule.

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