European securities regulators issued a consultation paper that would set standards for the creation of a consolidated tape for non-equity instruments.
The European Securities and Markets Authority (ESMA) on Monday published a paper proposing standards for the creation of a consolidated tape for non-equity instruments.
The proposed standards would require trading venues to send real-time post-trade data to consolidated tape providers that will, in turn, process and provide that data to the public.
“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,” says Steven Maijoor, ESMA chairman, in a news release.
“Having consolidated data available across multiple venues and borders also ensures the protection of investors regardless their location,” he adds.
The paper sets out proposed rules for data consolidators to specialize in asset classes, which trading venues should be mandatorily included in the tape, and rules on the inclusion/ removal of trading venues from the tape.
The consultation will close on Dec. 5. After that, ESMA will finalize its standards, and provide them to the European Commission for approval.