TSX proposes flat fee for retail market data

In response to long-standing complaints about the cost of market data, TSX Inc. is proposing to introduce a new flat fee model that will allow investment dealers to provide their retail clients with easier access to data.

In a notice published today, the TSX details a proposed new program that would set a flat fee for dealers to buy certain data for their retail clients.

The optional program would have two tiers, charging $9,500 per month to firms with over 10,000 clients receiving the data, and $4,500 for dealers with less than 10,000 clients.

Among other things, the program is designed to alleviate the burden for dealers of assessing whether their clients are considered “professional” users or not, allowing them to estimate the number of “wealth” clients they have and to pay a flat monthly rate to provide those clients with data.

The proposals follows discussions between the exchange and industry firms that began in 2018 regarding the cost and administrative complexity of market data consumption.

“The exchanges believe that the proposed program… is a great benefit to distributors as well as the Canadian capital markets as it encourages accessibility of real time data to a broader number of Canadian investors,” it said.

The proposal is out for comment until Dec. 14.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.