Fourteen European exchanges have joined forces to create a joint venture aimed at participating in the selection process for a consolidated tape (CT) for equities within the European Union.
The exchanges, operating across 26 EU member states, have signed an agreement to establish a joint venture that will assess and prepare an application to become a CT provider in future selection efforts. This project aims to deliver a tape that serves as a “comprehensive, standardized, and consistent source of market data,” with plans to work collaboratively with regulators to find the best solution.
European regulators have been advocating for the implementation of a consolidated ticker tape for equities that spans all member states, with the goal of enhancing transparency in EU markets and reducing costs. A study by Market Partners in 2020 suggests that a consolidated tape capable of saving end investors billions of euros could be developed for an estimated €11 million, with ongoing annual operating costs ranging from €7 to €9 million.
This initiative from the exchanges follows closely on the heels of Bloomberg, MarketAxess, and TradeWeb selecting Finbourne as the technology integrator for an upcoming fixed-income consolidated tape.