Bloomberg, MarketAxess, and Tradeweb have abandoned
their plans to establish an independent entity that will bid as the
fixed-income consolidated tape provider (CTP) in the European Union and the United
Kingdom.
This unexpected decision happened as a result of
mounting complexities and uncertainties surrounding the venture, according to a
statement shared by Tradeweb.
This collaboration was poised to revolutionize the
fixed-income CTP space in the EU and the UK.
However, in recent months, a series of important developments have steered the
companies away from their aspirations for the joint venture.
One of the primary factors behind this change is the
uncertainty surrounding an important element of this project. According to the
company, there is a challenge related to the uncertain outcome of the product
of the joint venture.
Tradeweb mentioned that: “As such, after
careful consideration, we have jointly agreed to end our engagement in this
venture. We remain independently committed to working with regulators and the
industry to contribute and drive further progress towards this very important
initiative.”
In May, Bloomberg, MarketAxess, and Tradeweb teamed up to pioneer a fixed-income CTP within the European Union. This was followed
by the appointment of industry veteran Neil Ryan to lead this initiative, which sought to promote electronification in the fixed-income industry.
Under the leadership of Ryan, the joint venture
aimed to address the need for a consolidated tape that leverages low-latency data processing, cleansing, consolidation, and
publishing, all within a regulated framework. Ryan emphasized that the ultimate
goal was to establish a cost-effective CT that prioritizes fairness for data
contributors and consumers.
FCA’s Regulatory Stance on CTPs
According to the Financial Conduct Authority (FCA), CTPs
play a crucial role in the European financial landscape. Mandated by the
European Union, these entities are tasked with providing trade data within the
jurisdiction, irrespective of their origin.
Their function involves disseminating data to market
participants and ensuring equitable access to information across geographical
locations. Moreover, according to the UK’s regulator, CTPs contribute to the efficient
pricing of financial instruments, fostering fairer and more accessible markets.
Under the European Union’s second Markets in
Financial Instruments Directive (MiFID II ), the UK has embraced a regime allowing
multiple competing CTPs per asset class.
Bloomberg, MarketAxess, and Tradeweb have abandoned
their plans to establish an independent entity that will bid as the
fixed-income consolidated tape provider (CTP) in the European Union and the United
Kingdom.
This unexpected decision happened as a result of
mounting complexities and uncertainties surrounding the venture, according to a
statement shared by Tradeweb.
This collaboration was poised to revolutionize the
fixed-income CTP space in the EU and the UK.
However, in recent months, a series of important developments have steered the
companies away from their aspirations for the joint venture.
One of the primary factors behind this change is the
uncertainty surrounding an important element of this project. According to the
company, there is a challenge related to the uncertain outcome of the product
of the joint venture.
Tradeweb mentioned that: “As such, after
careful consideration, we have jointly agreed to end our engagement in this
venture. We remain independently committed to working with regulators and the
industry to contribute and drive further progress towards this very important
initiative.”
In May, Bloomberg, MarketAxess, and Tradeweb teamed up to pioneer a fixed-income CTP within the European Union. This was followed
by the appointment of industry veteran Neil Ryan to lead this initiative, which sought to promote electronification in the fixed-income industry.
Under the leadership of Ryan, the joint venture
aimed to address the need for a consolidated tape that leverages low-latency data processing, cleansing, consolidation, and
publishing, all within a regulated framework. Ryan emphasized that the ultimate
goal was to establish a cost-effective CT that prioritizes fairness for data
contributors and consumers.
FCA’s Regulatory Stance on CTPs
According to the Financial Conduct Authority (FCA), CTPs
play a crucial role in the European financial landscape. Mandated by the
European Union, these entities are tasked with providing trade data within the
jurisdiction, irrespective of their origin.
Their function involves disseminating data to market
participants and ensuring equitable access to information across geographical
locations. Moreover, according to the UK’s regulator, CTPs contribute to the efficient
pricing of financial instruments, fostering fairer and more accessible markets.
Under the European Union’s second Markets in
Financial Instruments Directive (MiFID II ), the UK has embraced a regime allowing
multiple competing CTPs per asset class.
