(BFM Bourse) – The European financial markets regulator is launching a consultation on a draft tool intended to ensure the same level of information for investors on the Old Continent.
The European Securities and Markets Authority (Esma) announced on Thursday the launch of a consultation to gather the opinions of financial professionals on the creation of a common European market data platform.
The project of a “consolidated tape”, or consolidated data flow in French, would make it possible to offer the same level of information to all market players in Europe.
This aims, ultimately, to replace the current system, fragmented into more than 300 platforms for executing transactions on listed markets in Europe, such as the stock exchange operators Euronext, Deutsche Borse, or Bolsa y Mercados Espanoles (BME). In comparison, there are around twenty in the United States, even though the stock market there is much more important than on the Old Continent.
These execution venues “are places where exchanges are recorded, carried out or where transactions that have been made elsewhere are declared”. However, their multiplicity “makes the life of market participants complicated”, explains Eglantine Desautel, general director of EuroCTP, a start-up candidate to be one of the future operators of a European “consolidated tape”, via a license which will be awarded later by Esma, through a call for tenders.
A complete level of information
This data makes it possible, for example, to have “a view of an order book, to know how many people are positioned to buy or sell and to show where the best price is”, explains Eglantine Desautel.
To ensure a complete level of information, today investors must rely on several data providers to obtain a complete and as real-time view of European financial markets as possible.
This new tool would allow investors to “position themselves with the same information for everyone”, summarizes Eglantine Desautel. Each asset class will have its own platform (stocks and ETFs, bonds, derivatives), she specifies.
The projects around the creation of a “consolidated tape” are being carried out within the framework of a European directive, MiFiD II (Markets in Financial Instruments Directive) and the associated regulation MiFiR (Markets in Financial Instruments Regulation), aimed at to improve the functioning of European financial markets which are under the authority of Esma.
Financial market players are invited to decide on the type of data to be collected and the rules to which the providers of these platforms must comply.
The consultation is open until August 28 and will then result in a proposal from Esma for technical standards by the end of December.
(With AFP)
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