IIAC RESPONDS TO IOSCO CONSULTATION ON MARKET DATA
The IIAC submitted a response to the International Organization of Securities Commissions (IOSCO) on its Market Data in the Secondary Equity Markets Consultation Report. The IIAC expressed concerns that the monopolistic market practices of the exchanges have led to ever-increasing fees for market data and a lack of transparency. Onerous and changing licensing terms and burdensome audit practices have also pushed up costs for the industry. The IIAC submission discussed the importance of market data to firms’ core business and regulatory compliance, and the need for regulatory action to balance the inelastic demand of data users and the exchanges’ market power in the supply of market data.
The IIAC submission presented the Canadian perspective on the market data issue, and supplemented a letter co-authored and submitted by the International Council of Securities Associations (ICSA) of which the IIAC is a member.
The IIAC recommended regulation that takes into account the cost of production and distribution of market data, and addresses the lack of taxonomy and terminology in terms of defining products and services and licencing concepts and policies. For more information, please contact Susan Copland.