OSC publishes updated fee structure for market participants

TORONTO – The Ontario Securities Commission (OSC) today announced that, pending Ministerial approval, new fee rules will be in place for market participants effective April 3, 2023. Certain market participants that are the most active in Ontario’s over-the-counter (OTC) derivatives market will be subject to a new fee, while the vast majority of Ontario market participants will benefit from a reduction in certain fees.

The updated fee structure reflects the growth and complexity of capital market activities and the OSC’s systemic risk-related mandate. The rule changes also consider burden reduction and fair allocation of costs across market segments.

Changes include a new participation fee totalling an estimated $13.5 million, primarily for large financial institutions that are responsible for the majority of OTC derivatives trading in Ontario. In addition, most existing payers will see an estimated $5.6 million reduction in cumulative annual fees. This reduction is due to lower participation fees and the elimination of several activity and late fees for small and medium-sized businesses.

The fee reductions are in addition to approximately $1.7 million in fee savings resulting from lower volumes of regulatory filings from policy-driven burden reduction initiatives. Some of the initiatives have already been implemented with more planned in the next few years.

The rule changes reflect revisions that were made to reduce potential regulatory burden and improve clarity – in response to feedback received in comment letters.

To read more about the amendments to OSC Rule 13-502 Fees, OSC Rule 13-503 (Commodity Futures Act) Fees, changes to their companion policies and related consequential amendments and changes, please visit the OSC website.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.

– 30 –