A joint venture of 16 European stock markets is now expected to launch consolidated market data on equities and exchange-traded funds (ETFs) later this year.
Last year, the European Securities and Markets Authority (ESMA) tapped EuroCTP B.V. (EuroCTP) — an Amsterdam-based company that was established in 2023 by a group of the region’s bourses, including Deutsche Boerse, Euronext, Nasdaq Nordic and 13 others — to function as the consolidated data provider for stocks and ETFs.
On Monday, ESMA said that it has approved the company to operate the consolidated tape, and it said that the company has until Sept. 30 to finalize the new service’s operational and technical arrangements.
Once the service launches, the company will have the job of providing consolidated market data for five years.
While industry firms will have to pay for data, the firm will provide free access to retail investors, academics and regulators.
“This authorization marks a key step in the implementation of the consolidated tape framework, strengthening the transparency and efficiency of EU equity capital markets,” said Natasha Cazenave, executive director of ESMA, in a release.
Consolidating trading data will give brokers and investors a “comprehensive view of trading activity,” she said — which will enhance price discovery and facilitate more informed investment decisions.
Earlier this year, the regulator selected a consolidated tape provider for over-the-counter (OTC) derivatives. It has also named a provider for bond markets.