The European Securities and Markets Authority (ESMA) has launched the first stage of the selection procedure for the bond consolidated tape provider (CTP).
Interested parties are invited to register and submit requests to participate by 7 February 2025 – after which ESMA will assess these requests against the ‘exclusion and selection criteria’ before successful candidates are invited to submit their official applications.
Speaking in its most recent announcement the watchdog reiterated that “the CTP aims to enhance market transparency and efficiency by consolidating trade data from various trading venues into a single and continuous electronic stream”.
Adding: “This consolidated view of market activity should help market participants to access accurate and timely information and make better-informed decisions, leading to more efficient price discovery and trading.”
As previously communicated, ESMA is set to appoint a CTP by early July 2025, with the successful applicant invited to operate the consolidated tape for a five-year period.
In December 2023, Etrading Software confirmed plans to bid to become the consolidated tape provider (CTP) for both the UK and EU. This followed the announcement that the Bloomberg, MarketAxess and Tradeweb JV was off the table.
Ediphy has also confirmed its intention to bid for the European fixed income tape, as of last September, as well as also gearing up to apply in the UK.
In addition, firms FINBOURNE and Propellant have also been involved in industry discussion around potential applications to the bond CTP in Europe and the UK.
Speaking to The TRADE about the launch of the first stage of the CTP selection procedure, Neil Ryan, consultant at FINBOURNE, said: “ESMA’s phased approach to the CTP selection process is a welcome move toward ensuring a robust and effective outcome. The focus on a system that aligns with the technical intricacies of fixed income markets and adapts to their unique requirements is critical.
“The proactive elements of this process are more measured and better attuned to the market’s needs, paving the way for a high-quality consolidated tape at a reasonable price. Prioritising high quality, accurate data is essential – without this, the CT risks undermining its effectiveness and eroding the trust of market participants.”
More to follow…