Canada is lowering trading fee cap for non-inter-listed securities

Canada is lowering trading fee cap for non-inter-listed securities

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The Canadian Securities Administrators (CSA), an umbrella organization of Canada’s provincial and territorial securities regulators, said on Thursday it has made final amendments to the national rules for trading, with which it lowers the cap on active trading fees for non-inter-listed securities, which are securities that are listed on a Canadian exchange, but not listed on a US exchange.

The changes envision a cap on active trading fees for non-inter-listed securities at $0.0017 per security traded for an equity or per unit traded for an exchange-traded fund, if the execution price of the security or unit traded is greater than or equal to $1.00.

“These amendments are intended to address concerns raised regarding trading fee costs, specifically that the trading fee should reflect the value of the stocks traded, while also addressing liquidity needs in the Canadian marketplace,” said Louis Morisset, Canadian Securities Administrators Chair and President.

The new rules are expected to come into effect on 10 April, given they obtain all ministerial approvals.

Currently, there is a cap of $0.0004 per share or unit price that will remain in place for both inter-listed and non-inter-listed securities and units trading below $1.00. Meanwhile, fees for securities that trade on both the Canadian and US exchanges will continue to be capped at $0.0030 per share or unit traded at or above $1.00.

In Canada, financial markets fall under the regulation and supervison of provincial watchdogs and legislation rules may vary in the various provinces. The CSA is the council of the 10 provincial and three territorial securities regulators in the country. It co-ordinates and harmonizes regulation for the Canadian capital markets. The majority of enforcement activities are executed locally, but in some cases regulators of different provinces and territories work together to supervise market players and investigate possible misconduct.


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