The European Parliament’s recent approval of new rules to establish an EU consolidated tape is seen as a significant step towards enhancing transparency in EU capital markets and reducing market fragmentation.
These reforms are expected to facilitate a meaningful and reasonably priced consolidated tape, strengthen the reasonable commercial basis principle for data provision, and promote a diversity of trading options.
The European asset management industry, represented by the European Fund and Asset Management Association (Efama), views these developments as crucial for bolstering cross-border investments and enhancing the global competitiveness of EU capital markets.
The success of the consolidated tape, particularly for equities, hinges on several factors, including mandatory contribution from trading venues and real-time data delivery.
Efama anticipates these changes will improve market dynamics and attract more interest in European equities.
Tanguy van de Werve, director general at Efama, commented: “With the legislative review now behind us, we look forward to a healthy contest to choose the best providers for the bond and equities tapes.
“Consolidated European data in the two asset classes has long been lacking and will fill a major need for both domestic and foreign investors.”
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