Back in November, 2022 we wrote about CSA Consultation Paper 21-403 Access to Real-Time Market Data, which dealt with concerns about the cost of accessing market data in Canada where there are multiple marketplaces competing for the same securities to trade. The issues are relevant to anyone responsible for investment, order routing and execution decisions, as real-time market data contains information about orders sent to and trades executed on all Canadian marketplaces, both exchanges and alternative trading systems. Several CSA considerations and areas for feedback were set out in the Consultation Paper, ranging from the need to enhance the transparency of fee proposals related to real-time market data to how to incentivize market participants to provide consolidated real-time market data to all clients at reasonable prices.

On April 18th, the CSA released Staff Notice 21-334 Next Steps to Facilitate Access to Real-Time Market Data (the Notice). The Notice summarizes the twenty comment letters received on the Consultation Paper and advises stakeholders on the CSA’s next steps. The views of commenters were diverse, particularly between marketplaces and market participants. As a result, the CSA has decided to more forward with the initial options proposed and is not currently pursuing the longer-term options but will undertake a further consultation to determine whether the introduction of consolidated real-time market products for retail investors and their advisors will benefit the Canadian capital markets.

As a result, the Notice indicates the CSA will take the following next steps:

  • Implement an enhanced transparency regime for any fee proposals by requiring marketplaces to publish proposals relating to real-time market data products and services.
  • Reconsider the use of the data fees methodology and establish an industry committee to provide recommendations.
  • Assess facilitating access to real-time market data products and services by retail investors and their advisors and establish an industry committee to explore the creation of a framework to provide incentives to offer such products and services.
  • Establish an industry committee to present recommendations about standardizing key terms and definitions for consolidated real-time market data agreements.

Further detail on each of these actions is set out in the Notice.

April 24, 2024