Notice 2016-005 – CSE Trading Fee Schedule
April 13, 2016
The Canadian Securities Exchange announces three proposed changes to its trading fee schedule that will take effect on May 2, 2016, subject to regulatory approval. These changes apply to CSE’s market making programme.
- The selection criteria for Designated Securities have been amended. The average daily trading volume requirement for Designated Securities has been reduced from one million to 750,000 shares. Additionally, the requirement that a Designated Security be priced in excess of $1 per share has been eliminated.
- The requirement that a Market Maker trade one million shares in a Designated Security per month, in order to receive a reduced fee of $.0016, has been eliminated. The fee of $.0016 will apply to all trade executions in Designated Securities against guaranteed minimum fill (“GMF”) eligible agency orders in the Guaranteed Fill Facility or in the continuous auction market.
- A new fee model for resting orders in the continuous auction market for Designated Securities is being introduced.
An inverted fee will apply to trades with GMF eligible orders in Designated Securities:
|
|
Active Rebate |
Passive Fee |
|
Designated Securities & GMF Order |
-$0.0014 |
$0.0018 |
If an order is not GMF eligible, the passive side will earn a rebate and the incoming order will be assessed a fee based on the standard maker/taker model.
For non-GMF eligible orders on all securities, the active side of the trade for continuous auction market trades will be assessed fees based on the standard maker/taker model ($.0025/share for stocks priced at or above $1.00, with two tiers on a take/take basis for stocks priced below $1.00).
The new fees are intended to significantly reduce costs for dealers, in particular when executing agency orders in very active stocks on Canadian exchanges. The updated list of Designated Securities and complete Trading Fee schedule are available on the CSE website.
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If you have any questions or require further information, please contact:
[email protected]
416.367.7347
www.thecse.com
