Aequitas Begins Journey to Transform Canadian Capital Markets Through Proposed Market Structure Solutions

  Aequitas Begins Journey to Transform Canadian Capital Markets Through
  Proposed Market Structure Solutions

 Aequitas publishes a description of its proposed market structure as part of
the OSC Staff request for comments on specific aspects of its market structure
                                   approach

Business Wire

TORONTO -- August 13, 2013

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 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.

For more information on the regulatory process and educational events, please
visit: www.aequitasinnovations.com/regulatory.

The OSC Staff Notice and Request for Comments, including the Aequitas
description of its proposed market structure, can be found here:
http://www.osc.gov.on.ca/documents/en/Marketplaces/xxr-aequitas_20130813_rfc-pro-structure.pdf

About Aequitas Innovations Inc.

Aequitas Innovations Inc. is a company founded by a diverse group of Canadian
corporations, representing all market participants, working together to create
a new user-focused Canadian exchange. Aequitas investors and commercial
partners include: Barclays Corporation Limited; BCE Inc.; CI Investments Inc.,
IGM Financial; ITG Canada Corp., OMERS Capital Markets; PSP Public Markets
Inc; and RBC Dominion Securities.

Contact:

Aequitas Innovations Inc.
Joanne Kearney, 416-804-5949
joanne.kearney@aequin.com
 
Press spacebar to pause and continue. Press esc to stop.