New rules align fee and tick regimes for key cross-border names by later this year
Trading costs for Canadian and US Inter-listed Securities priced at $1.00 or more are set to fall under new rules from the Canadian Securities Administrators (CSA).
The CSA has adopted final amendments to National Instrument 23-101 Trading Rules and changes to Companion Policy 23-101 Trading Rules.
The amendments lower the maximum fee for executing an order in securities priced at $1.00 or more that are listed on both a Canadian recognized exchange and a US registered national securities exchange (US Inter-listed Securities).
After the change, all securities priced at $1.00 or more will face an active trading fee cap of $0.0017.
The CSA will monitor how the new fee cap affects the market over time and will assess whether further changes to the fee cap are required.
Any additional changes will go through public consultation.
In a related initiative, the Canadian Investment Regulatory Organization has published a Bulletin Amendments Respecting Trading Increments to align Canadian trading increments for certain US Inter-listed Securities with the equivalent minimum pricing increment for these securities in the US
The final amendments will come into force on November 2, provided all necessary ministerial approvals are obtained.
