Consolidated Tape Providers
The Markets in Financial Instruments Regulation review aims at creating the conditions for establishing consolidated tape providers (CTPs) for bonds, equities (shares and ETFs) and OTC derivatives. To appoint those CTPs, ESMA will be responsible for selecting the most suitable candidates on the basis of pre-defined criteria and subsequently authorising and supervising the CTPs.
This section will be updated regularly with public information on the selection, the authorisation and the supervision of CTPs.
ESMA’s role in selecting CTPs
The Markets in Financial Instruments Regulation (MiFIR) provides a legislative framework for consolidated tape providers (CTPs). Those CTPs will be responsible for collecting from trading venues and approved publication arrangements (APAs) market data about financial instruments and for consolidating such data per financial instrument into a continuous electronic live stream made available to the public.
With the revised MiFIR now in force, ESMA is carrying on with preparing the first selection procedures to award to a single entity per asset class the right to operate a CTP for five years. A CTP will be authorised for each of the three asset classes: bonds, equity (shares and ETFs) and OTC derivatives (or relevant subclasses).
The selection procedures will be subject to the rules of the Regulation (EU, Euratom) 2018/1046 on the financial rules applicable to the general budget of the Union, with calls for tenders launched on a public platform. Each selection procedure is expected to be finalised six months after its launch with a reasoned ESMA decision on the applicant deemed suitable for operating the consolidated tape. This entity will be invited to apply for authorisation without undue delay in a separate procedure.
Ahead of the launch of the first selection procedure for the bond CTP, ESMA is drafting the technical standards of relevance to the CTP selection and is preparing the selection documents.
A consultation package dedicated to the CTPs has been published on 23 May 2024, covering in particular (i) the requirements on input and output data, reporting and data quality for CTPs and data contributors, (ii) the revenue redistribution scheme for the equity CTP, (iii) the synchronisation of business clocks, and (iv) the authorisation requirements for CTPs.
The consultation package also includes more details on the selection procedure, and ESMA’s initial reflections on the specification of assessment criteria.
On 30 September, ESMA published an announcement on the next steps for the selection of CTPs, including the launch date for the first selection of the bond CTP.
Transparency and engagement during the preparatory phase
Ahead of the launch of the selection procedures, ESMA is committed to engage in a regular dialogue with all relevant stakeholders, in strict respect of the principles of transparency and equal treatment between potential applicants.
To this end, ESMA has organised two online workshops on the CTP selection procedures and the specification of assessment criteria with potential CTP applicants and with a broader set of market participants, including future CTP users and data contributors.
ESMA has organised an online public hearing on revised rules following the MiFIR review on Friday 28 June 2024. More information is available on this page.
Furthermore, ESMA staff is adhering to engagement principles ensuring an enhanced vigilance when discussing bilaterally with potential applicants and other stakeholders with specific interests in relation to the CTP selection, authorisation and supervision.
Contact form
Stakeholders interested in further understanding the selection, authorisation and supervision of CTPs are invited to submit their request for information via the dedicated contact form. Frequently asked questions (FAQs) could be published and regularly updated on this webpage, if not already addressed in the consultation package on CTPs.
Questions on the practical application or implementation of EU law and/or ESMA acts (such as Technical Standards and/or Guidelines) in the context of the CTPs should be submitted via the Q&A tool.