Consolidated tape
European Union Electricity Market Glossary

 


 

 

A consolidated tape is an electronic system which combines sales volume and price data from different exchanges and certain broker-dealers.

 

 

MiFID II Recitals 115 - 119

 

(115) The provision of core market data services which are pivotal for users to be able to obtain a desired overview of trading activity across Union financial markets and for competent authorities to receive accurate and compre­hensive information on relevant transactions should be subject to authorisation and regulation to ensure the necessary level of quality.

 

(116) The introduction of approved publication arrangements (APAs) should improve the quality of trade transparency information published in the OTC space and contribute significantly to ensuring that such data is published in a way facilitating its consolidation with data published by trading venues.

 

(117) Now that a market structure is in place which allows for competition between multiple trading venues it is essential that an effective and comprehensive consolidated tape is in operation as soon as possible. The intro­duction of a commercial solution for a consolidated tape for equities and equity-like financial instruments should contribute to creating a more integrated European market and make it easier for market participants to gain access to a consolidated view of trade transparency information that is available. The envisaged solution is based on an authorisation of providers working along pre-defined and supervised parameters which are in competition with each other in order to achieve technically highly sophisticated and innovative solutions, serving the market to the greatest extent possible and ensuring that consistent and accurate market data is made available. By requiring all consolidated tape providers (CTPs) to consolidate data from all APAs and trading venues it will be assured that competition will take place on the basis of quality of service to clients rather than breadth of data covered. Nevertheless it is appropriate to make provision now for a consolidated tape to be put in place through a public procurement process if the mechanism envisaged does not lead to the timely delivery of an effective and compre­hensive consolidated tape for equities and equity-like financial instruments.

 

(118) The establishment of a consolidated tape for non-equity financial instruments is deemed to be more difficult to implement than the consolidated tape for equity financial instruments and potential providers should be able to gain experience with the latter before constructing it. In order to facilitate the proper establishment of the consolidated tape for non-equity financial instruments, it is therefore appropriate to provide for an extended date of application of the national measures transposing the relevant provision. Nevertheless it is appropriate to make provision now for a consolidated tape to be put in place through a public procurement process if the mechanism envisaged does not lead to the timely delivery of an effective and comprehensive consolidated tape for non-equity financial instruments.

 

(119) When determining, as regards non-equity financial instruments, the trading venues and APAs which need to be included in the post-trade information to be disseminated by CTPs, ESMA should ensure that the objective of the establishment of an integrated Union market for those financial instruments will be achieved and should ensure non-discriminatory treatment of APAs and trading venues.

 

It consolidates these into a continuous live feed, providing summarised data by security across all markets.

 

In the US, all registered exchanges and market centres that trade listed securities send their trades and quotes to a central consolidator.

 

This system provides real-time trade and quote information (Commission Staff Working Document Impact Assessment Accompanying the document Commission Delegated Regulation supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to definitions, transparency, portfolio compression and supervisory measures on product intervention and positions {C(2016) 2860 final} {SWD(2016) 156 final}, 18.5.2016, SWD(2016) 157 final, p. 60).

 

Directive 2014/65/EU (MiFID II) provides for the possibility of establishment of a consolidated tape both for equity as well as for non-equity instruments.

 

ESMA submitted in September 2015 draft regulatory technical standard (RTS) specifying the scope of the equity tape.

 

This RTS was endorsed by the Commission on 2 June 2016 and published in the EU Official Journal in 2017 (Commission Delegated Regulation (EU) 2017/571 of 2 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards on the authorisation, organisational requirements and the publication of transactions for data reporting services providers).

 

The respective non-equity scope has been set out in the ESMA's Consultation Paper RTS specifying the scope of the consolidated tape for non-equity financial instruments 03 October 2016, ESMA/2016/1422.

 

Recital 118 of MiFID II (see box) and ESMA itself acknowledge that the establishment of a non-equity consolidated tape is more difficult to implement and more complex than the equity one.

 

The provisions on the non-equity tape of Article 65(2) of MiFID II will apply as from September 2019,

 

 

Documentation

 

 

Commission Delegated Regulation (EU) 2017/571 of 2 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards on the authorisation, organisational requirements and the publication of transactions for data reporting services providers

 

Consultation Paper RTS specifying the scope of the consolidated tape for non-equity financial instruments 03 October 2016, ESMA/2016/1422

 

 

 


 

 

 

Links

 

 

Consolidated Tape Provider (CTP)

 

Data Reporting Services Provider (DRSP)

 

 

Last Updated on Saturday, 17 June 2017 14:06
 

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