The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is launching the first selection procedure for the Consolidated Tape Provider (CTP) for bonds.
Entities interested to apply are encouraged to register and submit their requests in order to participate in the selection procedure by 7 February 2025.
The CTP aims to enhance market transparency and efficiency by consolidating trade data from “various trading venues into a single and continuous electronic stream.”
This consolidated view of market activity should help market participants to access “accurate and timely information and make better-informed decisions, leading to more efficient price discovery and trading.”
The contract notice and procurement documents are available on the EU Funding & Tenders Portal.
ESMA said that it will assess the received requests against “the exclusion and selection criteria and will invite the successful candidates to submit their application.”
Any questions during the application period will be responded via the Portal.
ESMA intends to adopt a reasoned decision on the selected applicant by early July 2025.
As noted in the update from ESMA, the successful applicant will be selected to operate the CTP for a period of five years and will also be “invited to apply for authorization with ESMA without undue delay.”
Once authorized, the CTP will be supervised by ESMA.
Further information about the process is accessible via the dedicated webpage.
As covered, ESMA Europe stands for the “European Securities and Markets Authority,” which is an independent EU authority responsible for safeguarding the “stability of the European Union’s financial system by promoting investor protection and ensuring orderly functioning of securities markets across the bloc; essentially acting as the primary regulator for financial markets within the EU.”
Key points about ESMA:
Focus on Investor Protection:
ESMA prioritizes protecting investors by “analyzing risks, developing rules to improve investor protection, and collaborating with national authorities to address issues.”
Market Stability:
Aims to maintain stable and orderly financial markets “through regulations and oversight.”
Independent Authority:
Operates as an independent body within the EU.
Key Activities of ESMA are:
Analyzing risks to investors, writing rules to “enhance investor protection, developing training standards for the industry, and working with national competent authorities to educate investors.”