UPDATED:
The consolidated tape joint venture by pan-European equity exchanges Aquis Exchange and Cboe Global Markets has been disbanded as the pair confirm their decision to step away.
Speaking in an announcement today, Aquis highlighted “economic reasons” as their motivation behind pulling out of the joint venture.
Speaking to The TRADE, a spokesperson for Cboe Europe said: “We have worked closely with Aquis to explore, via the SimpliCT joint venture, participation in the public tender process to operate the EU equities consolidated tape. However, after careful consideration we have together decided against proceeding any further.
“We remain strong advocates for the tape and, its potential to strengthen the EU market ecosystem, by helping to drive a more competitive, integrated and attractive EU market and offering choice and flexibility to market data consumers. We remain committed to supporting regulators and the industry to help deliver a tape that meets users’ needs.”
Read more: Will the European equities tape tender process end up as a one-horse race?
The update follows news that SIX would be acquiring Aquis, as announced 11 November 2024. SIX is one of the 14 exchanges backing EuroCTP (first announced in the third quarter of 2023) as its shareholders.
At the time of the Aquis deal being announced, it was reported that SIX could potentially withdraw from the EuroCTP consortium.
Speaking at the time, SIX said that following completion of the acquisition, “if Aquis continues to explore or is pursuing a bid to perform the equity consolidated tape provider role, SIX intends to withdraw from EuroCTP, the consortium for the consolidated tape provider role that SIX is participating in”.
Read more: SIX agrees to acquire Aquis Exchange
Named SimpliCT, the Cboe and Aquis venture was announced in October 2024 and set to be a co-owned Netherlands-based company seeking to leverage the expertise of its founders to develop a “best-of-breed equity CT”.
However, the potential bid for the European equities consolidated tape now – at least publicly – is back to being a one-horse race, with EuroCTP the only other confirmed interested party.
Read more: European exchanges launch JV for CTP tender
The European Commission has mandated the creation of a single entity to operate a real-time pre- and post-trade CT for equities for five years as part of the Mifir Review, which came into force in April earlier this year – the official selection process will begin this June, the European Securities and Market Authority (ESMA) previously confirmed.
The successful applicant is set to be announced by the end of 2025.