The Canadian Securities Administrators (CSA) announced that it is seeking input on improving access to real-time market data for equity securities, including several proposed regulatory options to improve its availability.
“Market participants in Canada have raised concerns about the accessibility and cost of real-time market data. Typically, information about orders and trades for equity securities is fragmented across multiple trading venues, which may lead to inefficiencies,” the CSA states in an announcement about the publication of CSA Consultation Paper 21-403, Access to Real Time Market Data.
The paper follows a fact-finding review of the issues associated with access to real-time market data conducted by the CSA, includes the results of the review, and seeks feedback on proposed options that may address concerns raised by market participants, they add.
Short term, the paper proposes to create an industry group to standardize key terms and definitions for access and use of real-time data. Longer term options include a proposal for overhauling the regulatory regime for accessing consolidated real-time market data.
“Real-time market data plays a key role in providing vital information about securities markets,” the CSA paper states. “Canadian equity markets have evolved over time from a structure in which trading in a particular security was concentrated on a single listing exchange, to one in which multiple marketplaces, both exchanges and alternative trading systems, compete for trading in the same securities.”
The paper goes on to examine fees, the comparability of fees and regulations in other jurisdictions and poses a number of questions related to the CSA’s findings and proposed solutions.
Interested stakeholders are asked to submit their comments in writing by February 10, 2023.