CSA amends order protection rule

CSA has published final amendments to National Instrument 23-101 Trading Rules and its companion policy. The amendments adjust the order protection rule (OPR) framework to address inefficiencies and respond to market developments.

The amendments include:

• a market share threshold set at 2.5% market share of the adjusted volume and value traded equally weighted over a one-year period;
• guidance related to intentional order processing delays or speed bumps;
• a data fees methodology; and
• a cap on active trading fees charged by marketplaces.

The changes are based on proposed amendments first published in May 2014, following a CSA review of OPR, as well as June 2015 proposed amendments to the Companion Policy to National Instrument 23-101 Trading Rules, which address circumstances where a marketplace has introduced an intentional order processing delay.

Provided all necessary Ministerial approvals are obtained, the amendments will come into force on July 6, 2016, except for the market share threshold, which will come into force on October 1, 2016.

The CSA has also published CSA Notice and Request for Comment Proposed Amendments to National Instrument 23-101 Trading Rules. The proposed amendments would reduce the cap on active trading fees for non-inter-listed securities. These are securities that are listed on a Canadian exchange, but not listed on a U.S. exchange.

The proposed amendments can be found on CSA members’ websites. The comment period closes on July 6, 2016.

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