The European Securities and Markets Authority (ESMA) has issued a consultation paper on its draft regulatory technical standards (RTS) regarding the creation of a consolidated tape for non-equity instruments which is required under the Markets in Financial Instruments Directive (MiFID II).
The new MiFID II framework, which covers equity-like and non-equity instruments traded on trading venues, introduces provisions for establishing a central source of post-trade prices or consolidated tape.
ESMA, having already issued its draft RTS on an equity tape, is seeking feedback on its draft RTS for the non-equity tape. In order to create the non-equity tape, trading venues and approved publication arrangements (APAs) will send real-time post-trade data to consolidated tape providers (CTPs), who will consolidate this data in real-time and make the data available to the public.
Steven Maijoor (pictured), ESMA chair, says: “Reliable trading data helps investors find the right price in the marketplace, ensuring they get the best value for money. The consolidated data tape for non-equity products for the EU will enable investors to make more informed choices.
“Having consolidated data available across multiple venues and borders also ensures the protection of investors regardless their location.”
