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October 7, 2020

Report Recommends Exclusive Consolidated Tape Provider for Europe

Market Structure Partners has published the findings of a study on the Consolidated Tape for Fixed Income and Equities, undertaken for the European Commission.

The study recommends the EC creates a single consolidated tape provider that is run as a utility whilst seeking to introduce further legislative changes to support the full solution.

It finds that:

  • There is high demand for consolidated data and it would be of significant benefit to market participants, including investors, issuers, and regulators.
  • Consolidation is prevented by legal, organisational and economic challenges. Technology is not a constraint.
  • Challenges can be overcome by the creation of an exclusive consolidated data provider that is overseen by the regulator, run by data stakeholders and empowered to set rules for data contributors.
  • The benefits of creating consolidated data outweigh the costs of implementing the organisational and technical frameworks needed to deliver it.
  • Significant progress can be made towards a solution by regulators and stakeholders working together under the current legal framework. However, full data consolidation and resolution of all the challenges require further legislative change.

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