ESMA has opened its consultation on draft technical standards around consolidated tape providers (CTPs), other data reporting service providers (DRSPs) and the assessment criteria for the CTP selection procedure under MiFIR.
The proposed draft technical standards have been developed in the context of the MiFIR review, ESMA said, and will help both to improve market transparency and to remove obstacles preventing CT implementation in the EU.
Comments are being accepted until 28 August, with input has been requested on a number of topics related to the draft technical standards. These include new rules for the authorisation of CTPs and initial reflections on the assessment of CTP applications, along with clock synchronisation requirements for systematic internalisers, DRSPs, trading venues and their members.
The proposed rules on input and output data for reporting instructions and data quality requirements for CTPs and data contributors are to be considered, as are draft rules for the equity CTP’s methodology to redistribute revenue to data contributors and the criteria to suspend this distribution.
The authorisation and organisational requirements for authorised publication arrangements and approved reporting mechanisms are also part of the consultation.
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ESMA’s final report will be prepared based on received responses, with final draft technical standards expected to be submitted to the European Commission by 29 December 2024. Specifications on the assessment criteria for the CTP selection procedures are also expected to be published by the end of the year.
Commenting on the consultation, EuroCTP said: “EuroCTP welcomes ESMA’s consultations on the assessment criteria for the consolidated tape providers and associated technical standards. Both will support a transparent and efficient selection procedure and ensure that the successful provider operates to the highest possible standard. We are reviewing the consultation package and preparing our response.
“We view a well-functioning, fit-for-purpose consolidated tape as essential for strengthening the Capital Markets Union.”
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