Cboe Europe and Aquis Exchange to explore equity consolidated tape
29 October 2024 Netherlands
Image: Coloures-Pic/stock.adobe.com
Cboe Europe and Aquis Exchange, a creator and facilitator of next-generation financial markets, plan to form a joint venture which will explore a bid to perform the role of the EU's equity consolidated tape (CT) provider.
Both companies are operators of pan-European equity exchanges, technology and reporting services that collectively process over half of daily European equity trades.
The European Commission has mandated the creation of a single entity to operate a real-time pre and post-trade CT for equities for five years as part of the MiFIR Review, which came into force in April 2024.
The task of selecting the equity CT has been delegated to the European Securities and Market Authority (ESMA).
The selection process for the EU equity CT is expected to begin in June 2025, with a successful applicant chosen by the end of 2025.
Cboe Europe and Aquis plan to establish and co-own a new company named SimpliCT, which will be based in the Netherlands and will look to develop a “best-of-breed” equity CT.
SimpliCT aims to deliver a high-quality and reliable CT that provides a simplified, comprehensive and cost-efficient view of market activity.
The new company will be supported by a commercial and governance framework designed to ensure fair treatment of both data contributors and consumers.
Cboe Europe says “the goal” is to enhance the competitiveness of EU equity markets and attract global capital flows by increasing the visibility of European issuers, both within Europe and internationally.
Commenting on the news, Natan Tiefenbrun, president of North American and European equities at Cboe Global Markets, says: “As a firm that has consistently championed for the introduction of a consolidated tape, we are thrilled to be launching SimpliCT in partnership with Aquis.
“As one of the most important market infrastructure developments the EU has introduced for many years, it requires a provider that has the necessary technical, operational, and commercial expertise, and is aligned to policy makers' vision and objectives for the tape.”
Aquis CEO Alasdair Haynes adds: “Aquis has long been an advocate of a consolidated tape in Europe. The advantages to the industry of establishing a tape have been clear for many years. Together with Cboe, we have identified a clear opportunity to serve the financial community as an independent and competitive operator through the formation of SimpliCT.
“This proposed joint venture would not only represent a cost-efficient, robust business model that integrates advanced complementary, proprietary technologies, it would also be designed to deliver fair compensation for data contribution, aligning the interests of contributors and consumers."
Both companies are operators of pan-European equity exchanges, technology and reporting services that collectively process over half of daily European equity trades.
The European Commission has mandated the creation of a single entity to operate a real-time pre and post-trade CT for equities for five years as part of the MiFIR Review, which came into force in April 2024.
The task of selecting the equity CT has been delegated to the European Securities and Market Authority (ESMA).
The selection process for the EU equity CT is expected to begin in June 2025, with a successful applicant chosen by the end of 2025.
Cboe Europe and Aquis plan to establish and co-own a new company named SimpliCT, which will be based in the Netherlands and will look to develop a “best-of-breed” equity CT.
SimpliCT aims to deliver a high-quality and reliable CT that provides a simplified, comprehensive and cost-efficient view of market activity.
The new company will be supported by a commercial and governance framework designed to ensure fair treatment of both data contributors and consumers.
Cboe Europe says “the goal” is to enhance the competitiveness of EU equity markets and attract global capital flows by increasing the visibility of European issuers, both within Europe and internationally.
Commenting on the news, Natan Tiefenbrun, president of North American and European equities at Cboe Global Markets, says: “As a firm that has consistently championed for the introduction of a consolidated tape, we are thrilled to be launching SimpliCT in partnership with Aquis.
“As one of the most important market infrastructure developments the EU has introduced for many years, it requires a provider that has the necessary technical, operational, and commercial expertise, and is aligned to policy makers' vision and objectives for the tape.”
Aquis CEO Alasdair Haynes adds: “Aquis has long been an advocate of a consolidated tape in Europe. The advantages to the industry of establishing a tape have been clear for many years. Together with Cboe, we have identified a clear opportunity to serve the financial community as an independent and competitive operator through the formation of SimpliCT.
“This proposed joint venture would not only represent a cost-efficient, robust business model that integrates advanced complementary, proprietary technologies, it would also be designed to deliver fair compensation for data contribution, aligning the interests of contributors and consumers."
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