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

The following researchers will design and conduct the pilot study:

  • Katya Malinova, associate professor and Mackenzie Investments chair in evidence-based investment management at the DeGroote School of Business, McMaster University
  • Andriy Shkilko, associate professor of finance and Canada research chair in financial markets at Laurier’s Lazaridis School of Business and Economics
  • 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

Read: CSA’s embedded commissions paper focuses on unique Canadian market (see second topic)

Using the SEC’s proposed transaction fee pilot as a basis, the researchers will determine the design of the proposed study and work with CSA on stakeholder consultations, and on finalizing and implementing the study.

The researchers will also conduct ongoing data analysis, compile research reports on the study’s progress and produce a final report.

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

Prior to the request for comment, the researchers will gather preliminary feedback on the design and scope of the study at an event hosted by the Capital Markets Institute at the Rotman School of Management, University of Toronto, on Sept. 12.

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