Aequitas Innovations Inc. ("Aequitas") is pleased to be commencing its next implementation stage with the Ontario Securities Commission ("OSC") publication of a Staff Notice relating to the Aequitas Proposal to build a new stock exchange in Canada.
The OSC Staff Notice sets out OSC Staff views on current market structure in Canada and requests comments in connection with the Aequitas Proposal. The OSC Staff Notice includes questions on Investor Confidence, Market Quality, Segmentation, Market Making and Approach to Developing New Solutions. Comments are due to the OSC by Friday, September 27, 2013.
"Today, every player in Canada's financial markets has an incredible opportunity to impact the future direction and success of Canada's capital markets," stated Jos Schmitt, CEO, Aequitas Innovations Inc. "The Ontario Securities Regulators have laid out a process through which everyone - whether investor, existing or future issuer, or dealer, small and large - should make their voice heard. The transformation of our industry and rebalancing of our public markets begins now."
Aequitas' proposed market structure combines the following features to address current issues and chart a new evolution in the marketplace: multiple order books, innovative approaches to matching priorities and market making, as well as mechanisms to prevent predatory trading behaviours.
"We are developing a leading edge trading eco-system that provides effective options to long term investors who are currently disadvantaged by the dominant market model," continued Schmitt. "We want to facilitate the role of committed market making - with clear benefits and responsibilities. We will discourage strategies that undermine market fairness and confidence and we want to offer a viable alternative to the rebate incentives and maker-taker pricing model, which have adversely impacted market quality. We have designed the foundations and are now eager to hear from various participants to ensure that we are building the right solutions."
The Aequitas team will be conducting extensive industry outreach efforts over the next 45 days to build awareness on the proposal and discuss solutions. Technical discussions wions will focus on the key issues for Comment by the OSC Staff: Segmentation of Order Flow; Proposed Market Making Program; Potential Impact of Hybrid Book on market Quality and Market Integrity; and the Approach to Implementation.