The Aequitas NEO Exchange has achieved another important milestone in its ramp up to the launch of the NEO Exchange with regulatory approval of its market data fees. The NEO market data fees are designed to help investors make sound investment decisions and ensure trading information of NEO-listed securities reaches the broadest possible audience:
- Market data for NEO-listed securities will be free for everyone;
- Real-time displayed market data for TSX / TSXV-listed securities traded on the NEO Exchange will be free for non-professional users ("retail investors"); and
- Real-time displayed market data fees for TSX / TSXV-listed securities traded on the NEO Exchange will be waived until the NEO Exchange reaches 5% market share.
"There is a current stranglehold on the dissemination of trading information in Canada and it has resulted in prohibitive and virtually monopolistic pricing. This prevents numerous investors, including the vast majority of Canadian retail investors and their advisors, from seeing in real-time the full picture of what is really happening in the markets," stated Jos Schmitt, President & CEO, Aequitas NEO Exchange. "There is a real need for something new and different in the Canadian market data space. It´s time for change."
Canadian real-time displayed market data fees, normalized by both volume and value traded, are considerably out of line with other capital markets around the world. As an example, for a retail investor this type of data is more than four times more expensive in Canada than in the United States, a market 10 times the size.
The prohibitive fees often cause investors at home and abroad to minimize their access to Canadian market data impacting their investment decisions. Indirectly, Canadian capital raising companies miss opportunities to promote their securities and trading activity.
The Aequitas NEO Exchange is working to address these challenges and the market data fees are clear demonstration of its willingness to deliver on the commitment to put the needs of investors and public companies first.
Market Data Fees: NEO-listed securities traded on the NEO Exchange
Real-time market data for NEO Exchange-listed securities will be free for everyone.
In an effort to revive the benefits for a company to go and stay public, the NEO Exchange will focus significant effort on connecting its listed public companies and investment products to their investors. One core component of this strategy is that trading information for all NEO Exchange-listed securities will be made available for free to everyone. The NEO Exchange expects to launch its listing platform mid-2015.
Market Data Fees: TSX/TSXV-listed securities traded on the NEO Exchange
Retail investors will have access to real-time displayed market data of TSX/TSXV-listed securities traded on the NEO Exchange for free.
Due to the current prohibitive costs of real-time displayed market data, the majority of Canadian retail investors only see a partial and declining view of Canadian trading information in real-time. Information is power and a more transparent view of all Canadian trading activity will help investors make sound investment decisions. The NEO Exchange will offer all non-professional users access to real-time displayed market data of TSX/TSXV-listed securities traded on the NEO Exchange for free.
Real-time displayed market data fees for professional users will be extremely competitive and waived until the NEO Exchange reaches 5% market share.
One of the main objectives of the NEO Exchange is to re-energize the role Canadian dealers and financial advisors play in trading securities and facilitating capital-raising. Key to delivering on this objective is reducing their cost of doing business and excessive market data fees are a significant part of their cost burden. True to this vision and to reduce the cost burden of a new marketplace launching in Canada, the NEO Exchange will waive real-time display market data fees for professional users until a 5% market share is reached. Once at 5% market share, professional data fees will be at a competitive level, setting a new standard for the Canadian market.
The full market data fee schedule can be found at:
http://aequitasneoexchange.com/public/wp-content/documents/Aequitas-NEO-Exchange-Data-Fee-Schedule-Mar-11-2015.pdf
About Aequitas NEO Exchange
Aequitas NEO Exchange is a new Canadian stock exchange using a bold new blueprint that seeks to put investors, companies raising capital and their dealers first. On track to launch its initial operations in March 2015, the NEO Exchange will offer trading, listings and, through one of its affiliates, related technology services. Its goal is to advantage all market participants. Aequitas NEO Exchange Inc. is a wholly owned subsidiary of Aequitas Innovations Inc., a company founded by a diverse group of Canadian corporations representing all industry stakeholders. Founding shareholders include: Barclays Corporation Limited; BCE Inc.; CI Investments Inc.; IGM Financial Inc.; ITG Canada Corp.; OMERS Capital Markets; PSP Public Markets Inc.; and RBC Dominion Securities Inc. For more information, please visit: www.aequitasneoexchange.com
Connect with us on Twitter @Aequitas_NEO and LinkedIn
