The International Organization of Securities Commissions (IOSCO) has published its final report on trading fee models and their impact on trading behaviour. The report provides a summary of responses received to a survey IOSCO conducted among regulators and trading venues in different jurisdictions. The survey included questions relating to:
- the types of fee models currently being used;
- the way in which fees and fee models are being regulated; and
- the work done to identify the potential or actual impacts of trading fee models.
The final report explains IOSCO’s key findings relating to:
- market context, including the state of competition and the regulatory environment in different jurisdictions;
- description of trading fee models and trading fees; and
- the incentives and effects of trading fee models and trading fees, including the beneficiaries of incentives and the effects.
The data collected during the survey did not provide IOSCO with enough clear evidence to enable it to draw definitive conclusions about the impact of trading fees or trading fee models on trading behaviour, but IOSCO concludes that the process was useful for gaining insight into the structure of fee models, the extent to which regulators are involved and the standards used by regulators when performing oversight over such fees. IOSCO will consequently continue to monitor trading fee models and trading fees and should any issues arise in the future, IOSCO will consider further work on the subject.
View Trading fee models and their impact on trading behaviour – final report, 13 December 2013