Aequitas NEO Exchange has formally requested that the CSA address Canada’s market data issues by mandating access to top-of-book, real-time consolidated market data for all Canadian investors. This includes retail investors and their advisors.
In a release, the exchange says consolidated market data is important because it helps investors to see “the complete picture of trading activity.”
It adds, “In line with our continuing efforts to bring more fairness and transparency to the Canadian capital markets, we are calling on the securities regulators to step in and ensure that all investors are provided with an opportunity to make fully informed investment decisions. The current situation has negative implications for Canadian investors, Canadian public companies and Canadian manufacturers of listed investment products.”
The exchange points out that “market fragmentation in Canada continues to increase and the market share of the Toronto Stock Exchange has further declined due to increased competition in trading.” It adds, “There are 12 other trading venues in Canada that, on average, account for approximately 65% of all ETF trading in Canada and 40% of all trading in TSX and TSX-V listed companies. It is time for a market data solution similar to what is in the United States,” which mandates access to real-time consolidated market data.
While CSA has analyzed Canadian market data cost issues and implemented some solutions, says Aequitas, more can be done.