Aquis Exchange PLC, a creator and facilitator of next-generation financial markets, and Cboe Europe, a division of Cboe Global Markets, Inc., the derivatives and securities exchange network, are announcing their intention to form a joint venture which plans to explore a bid to “perform the role of the EU’s equity consolidated tape (CT) provider.”
The selection process for the EU equity CT is expected to begin in June next year, with a “successful applicant” chosen by the end of 2025.
Aquis and Cboe, operators of equity exchanges, tech and reporting services that process over “half of daily European equity trades,” intend to establish and co-own a company named SimpliCT, which will be based in the Netherlands and seek to “leverage the expertise of its founders to develop a best-of-breed equity CT.”
SimpliCT’s aim would be to deliver “reliable” consolidated tape that provides a simplified, cost-efficient view of market activity, benefiting the “widest possible range” of participants.
It would be supported by a governance framework meant to ensure the “fair treatment” of data contributors and consumers. This initiative will now aim to exemplify Aquis and Cboe’s commitment and track record in developing various solutions that are said to be aligned to the vision of the EU’s Capital Markets Union.
The goal is to enhance the “competitiveness” of EU equity markets and attract capital flows by increasing the visibility of European issuers both within Europe and internationally, while “making European markets simpler and cheaper to access.”
Key points of the arrangement include:
- Aquis and Cboe will be equal shareholders of SimpliCT
- A dedicated SimpliCT management team and industry advisory committee would be appointed in due course
- If SimpliCT is successful in the selection process, Aquis and Cboe will each contribute expertise, technology and capabilities to SimpliCT
Natan Tiefenbrun, President, North American and European Equities, Cboe Global Markets, stated that as a firm that has called for the introduction of a consolidated tape, they are eager to be launching SimpliCT in partnership with Aquis, who share their belief in the benefits a “well-operated” and governed tape can bring to EU capital markets.
Natan added that as one of the market infrastructure developments the EU has introduced for many years, it requires a provider that has the technical, operational, and commercial expertise, and is aligned to policy makers’ vision and objectives for the tape. SimpliCT has been created to “meet this ambitious goal, by seeking to leverage the leading capabilities of its founder firms and their unwavering commitment to see it succeed.”
As noted in the announcement, the advantages to the industry of establishing a tape have been “clear for many years,” and Aquis and Cboe have been supporters.
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).”
It is expected to begin the selection process in June 2025 and “choose a successful applicant by the end of 2025.”
Aquis and Cboe, which operate trading venues in the EU and UK, have substantial levels of “technical, operational, and commercial expertise as highly experienced operators of EU-regulated venues, trade reporting and data services.”
Together, they contribute to EU equities data, with “more than half” of EU equity trades either “traded or reported” on Aquis and Cboe platforms.