The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has selected Ediphy (fairCT) as the first Consolidated Tape Provider (CTP) for bonds in the EU.
Natasha Cazenave, ESMA’s Executive Director, said:
“With today’s decision, we are taking a decisive step towards setting up consolidated tapes in the EU. This step constitutes a key contribution to building the Savings and Investment Union (SIU) and to the further development of capital markets in Europe.
Market participants will benefit from a consolidated view of market activity for bonds in the EU, with a variety of use cases to the benefit of all participants in the EU’s fixed income markets.”
Over the last six months, ESMA has assessed the applications received against the criteria listed in the Markets in Financial Instruments Regulation (MiFIR). ESMA has decided to select Ediphy (fairCT) as it meets all the selection criteria and reached the highest overall score on the award criteria.
The fairCT initiative has been catalysed by Ediphy, a FinTech company in the Fixed Income space. Ediphy has been involved with the Consolidated Tape topic since the onset of MiFID II in 2018.
Next Steps:
ESMA is now inviting Ediphy (fairCT) to apply for authorisation without delay. Following the authorisation, Ediphy (fairCT) would operate the CTP for bonds for a period of five years under ESMA’s direct supervision.
Background
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More details on the Consolidated Tape Providers are available on ESMA’s website: https://www.esma.europa.eu/esmas-activities/markets-and-infrastructure/consolidated-tape-providers
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Additional background on fairCT: https://www.fairct.org/
