OSC Approves MFDA Rule Regarding Transaction Fees

You may recall in January I talked about the proposed MFDA rules requiring a dealer member to inform clients of any fees or charges to be deducted, while also requiring the member to maintain evidence that the client was so informed. Moving full steam ahead, the MFDA has received approval from the Ontario Securities Commission.

THE BEST KEPT SECRET IN TOWN: TSX – LSE MERGER

On Wednesday, the TMX Group, which operates the Toronto Stock Exchange announced that they intended to merge with the London Stock Exchange, creating the biggest global exchange for mining and resource financing.  The merger which is subject to government approval, has been met with both optimism and apprehension from the Canadian business community.  

For many firms, this merger represents a great opportunity for expanded growth and access to international capital, and for investors, the benefits that come from a larger pool of investment choices.  When you put it this way, it is tough to see the downside.  However, the questions on my mind and I am sure on the minds of many others are, who will have the oversight role for the markets, Toronto or London?  Who will be responsible for protecting the interest of investors?  What does this mean for a national regulator in Canada?  According to the Federal government’s plan, the national regulator is to be responsible for the exchanges, how does this new proposed structure fit into their plan?  What about those who argue against a national regulator, stating that regional interests would be lost with a centralized regulator, how would they view their position today in light of this merger?

There are still many unanswered questions and we can only hope that those involved in reviewing the merger will seek to resolve the underlying questions.  One thing is for certain, the merger has again sparked the debate about Canada’s role in the global financial markets.