The European Commission (EC) has confirmed the EU derivatives consolidated tape tender process will begin in Q1 2026.
The ‘delegated act on derivative identifiers’ highlights that this decision has been taken specifically to allow the European Securities and Markets Authority (ESMA) “enough time to specify how identifying reference data should be reported and for the necessary adjustments to IT systems”.
The appointment of a single consolidated tape provider (CTP) specifically concerns OTC derivatives and relevant subclasses of OTC derivatives.
In addition, Mifir states that OTC derivatives are subject to both pre- and post-trade transparency if they are denominated in euro, yen, dollars or sterling, among other factors.
Mifir also requires ESMA to initiate the selection procedure for the appointment of a single derivatives CTP no earlier than six months from the initiation of the selection procedure for the ETF tape provider.
The EC announcement confirmed that “the identifying reference data set out in this ‘delegated regulation’ should be used from 1 September 2026. Until then, OTC interest rate swaps and OTC credit default swaps should continue to be identified in accordance with the rules currently in place.”
Read more – Consolidated tape: Avoiding a ‘garbage in and garbage out exercise’
Some of the entities which have already confirmed plans to bid to become the fixed income consolidated tape provider are also considering participation in the derivatives tape tender, The TRADE can reveal.
Etrading Software is preparing to participate in the derivatives tape tender, according to a social media announcement from Sassan Danesh, chief executive of Etrading Software.
Furthermore, speaking to The TRADE, Vincent Grandjean, founder and chief executive of Propellant Digital, confirmed that Propellant “will certainly consider being involved,” citing the firm’s technology solution which “already supports for its clients the aggregation of derivatives data across the EU and the UK”.
“It’s another example of where we can take our experience and competencies and apply them to drive market transparency forward via the consolidated tapes,” added Neil Ryan, CEO-designate at Bondtape.
Propellant and FINBOURNE are also involved in applications to become the bond CTP in both the UK and EU markets, as part of a joint initiative named ‘Bondtape’.
In addition, Ediphy – also in the race for the EU fixed income consolidated tape provider as part of ‘fairCT’ – tells The TRADE: “At this stage [we] are monitoring the developments related to the EU derivatives tape”.
The fairCT consortium is co-ordinated by Ediphy and consists of Google Cloud, UBS, TP ICAP, Cboe Global Markets, FactSet, and Norges Bank Investment Management.