For Immediate Release
August 1, 2018 

Canadian securities regulators provide update on trading fees and rebates pilot study

Toronto – The Canadian Securities Administrators (CSA) has awarded a research contract to develop a pilot study that will examine the impacts of trading fees and rebates on order routing behaviour by dealers, as well as execution quality and market quality. 

The CSA has selected the following group of researchers with expertise in Canadian equity market structure to design and conduct the pilot study:

  • Katya Malinova, Associate Professor, Mackenzie Investments Chair in Evidence-Based Investment Management at the DeGroote School of Business, McMaster University. Professor Malinova is an expert on financial market structure, including trading fees and rebates, dark trading, high frequency trading, and technological innovation.
  • Andriy Shkilko, Associate Professor of Finance and Canada Research Chair in Financial Markets at Laurier’s Lazaridis School of Business and Economics. Professor Shkilko’s research focuses on securities trading and the structure of financial markets, including the effects of trading fees and rebates on market quality and order routing in U.S. options.
  • Andreas Park, Associate Professor of Finance at the University of Toronto Mississauga and the Rotman School of Management, and Research Director at the Rotman FinHub. Professor Park’s areas of expertise include FinTech and financial market trading, and the economic impact of technological transformations on financial markets.

Using the United States Securities and Exchange Commission’s (SEC) Proposed Transaction Fee Pilot as a basis, the research group will determine the design of the proposed Canadian pilot study, and work with the CSA on stakeholder consultations, and finalizing and implementing the pilot study. The research group will also conduct ongoing data analysis, compile research reports on the progress of the pilot study, and produce a final report once the pilot study is complete.

The CSA intends to publish a notice and request for comment on the proposed pilot study in fall 2018.

Prior to publishing the proposed pilot study for comment, the researchers plan to gather preliminary feedback on the design and scope of the study at an event hosted by the Capital Markets Institute (CMI) at the Rotman School of Management, University of Toronto, on September 12, 2018. More information about the event, once available, will be published on CMI’s website.

In March 2018, the CSA published a notice, which outlined the CSA’s consideration of a pilot study, following the SEC’s publication of a Proposed Transaction Fee Pilot.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co- ordinates and harmonizes regulation for the Canadian capital markets.

For more information:

Kristen Rose
Ontario Securities Commission
416-593-2336

Alison Trollope
Alberta Securities Commission
403-297-2664

Andrew Poon
British Columbia Securities Commission
604-899-6880

Caroline Trottier
Autorité des marchés financiers
418-525-0337 ext. 4115

Jason (Jay) Booth
Manitoba Securities Commission
204-945-1660

Sara Wilson
Financial and Consumer Services
Commission, New Brunswick
506-643-7045

David Harrison
Nova Scotia Securities Commission
902-424-8586

Steve Dowling
Government of
Prince Edward Island,
Superintendent of Securities
902-368-4550

Craig Whalen
Office of the Superintendent
of Securities,
Newfoundland and Labrador
709-729-5661

Rhonda Horte
Office of the Yukon Superintendent
of Securities
867-667-5466

Jeff Mason
Nunavut Securities Office
867-975-6587

Tom Hall
Office of the Superintendent
of Securities
Northwest Territories
(867) 767-9305

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160