The Canadian Securities Administrators (CSA) has announced changes to the maximum trading fee charged by marketplaces, specifically through the adoption of final amendments to National Instrument 23-101 and Companion Policy 23-101.
In a news release, the CSA noted that the final amendments will take effect on Nov. 2, as long as it has obtained all the required ministerial approvals.
Through final amendments reducing the maximum fee, Canada’s securities regulators have imposed an active trading fee cap of $0.0017 for executing an order involving trades in securities priced at $1 or more and listed on both a Canadian recognized exchange and a US registered national securities exchange (US inter-listed securities).
The CSA said it plans to monitor the consequences of the reduced maximum trading fee over time and to consider whether to further adjust the fee cap, with any additional changes subject to public consultation.
The CSA noted that it considered the 10 responses it received since it published the relevant request for comment on Jan. 23, 2025. In its news release, the CSA expressed gratitude to everyone who shared their thoughts.
As the council of the securities regulators of the Canadian provinces and territories, the CSA aims to coordinate and harmonize regulation for the country’s capital markets.
CIRO initiative
In a related initiative, the Canadian Investment Regulatory Organization (CIRO) posted a bulletin on amendments respecting trading increments. This bulletin aims to align Canadian trading increments for some US inter-listed securities with the equivalent minimum pricing increment for such securities in the US.
On Dec. 12, 2024, CIRO sought comments on proposed amendments to trading increments under the Universal Market Integrity Rules (UMIR).
The proposed changes sought to address concerns regarding the possible loss of Canadian trading activity in US inter-listed securities if the regulators did not harmonize Canadian trading increments with the equivalent US minimum pricing increments, as set out in r. 612 of Regulation NMS of the United States Securities and Exchange Commission.
On Nov. 13, 2025, the CSA approved amendments to the UMIR that sought to:
- Differentiate between the applicable trading increment for what was a US inter-listed security and for a security that was not
- Empower the CIRO to designate the relevant trading increment for a US inter-listed security from time to time