On January 22, 2021, the Capital Markets Modernization Taskforce (Taskforce) released its final report (Report). The Taskforce was established by the Ontario Provincial Government to help transform the regulatory landscape for the capital markets sector, and advise the Minister of Finance on how to improve the innovation and competitiveness of the Province’s capital markets and best help build Ontario’s economy.

The Report includes 74 policy recommendations designed to amend securities laws in the following areas improving regulatory structure to enhance governance; improving competitiveness through regulatory measures; ensuring a level playing field between large and small market players; improving the proxy system, corporate governance and the process of mergers and acquisitions; fostering innovation; and

modernizing enforcement and enhancing investor protection.

Because of the far reaching nature of the numerous recommendations, BAX will do a series of articles over the next few weeks on recommendations of interest to small and midcap issuers and the registrants that service them. 

Recommendation #32 –  Requirement for market participants to provide open data

The Report refers to jurisdictions, including the United Kingdom and the European Union, that mandate open data to increase competition and promote alternatives to consumers giving them choice; while other jurisdictions, such as Japan, India and Singapore, have promoted data sharing arrangements.

Open data is defined by the Report as structured data that is machine-readable, freely shared, used and built on. Data governance standards are required to maintain integrity and confidentiality of data. In the view of the Taskforce, many financial technology (FinTech) solutions require open data to create efficiencies and offer better technology solutions for business and services to its customers/investors. The view of the Taskforce is that mandating open data fosters innovation and building technology solutions.

The Taskforce proposes that the Ontario Securities Commission’s mandate that capital market participants provide open data so that data sharing arrangements can be further encouraged and facilitate more FinTech solutions for businesses (thereby reducing costs and minimizing duplication of processes) and investors.

For a full copy of the Report:

For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.

This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.