Policymakers threaten to backtrack on pre-trade data for EU consolidated tape

European asset managers are urging policymakers to support the European Parliament’s proposal for an Equities/ETFs consolidated tape that includes five layers of real-time pre-trade data.
They argue that a post-trade-only tape will not meet the market demand required to make it commercially viable. The inclusion of pre-trade data would allow market participants to have access to a wider range of information, which would increase transparency and help them make better-informed decisions.
Tanguy van de Werve, Director General of EFAMA, has stated that a post-trade-only tape would be a legislative setback that European capital markets cannot afford, given that other markets globally offer better trading conditions and demonstrate growth. In addition to the 18 asset management firms that have already expressed support for the Parliament’s proposal, six more firms, including JP Morgan Asset Management, UBS, Universal Investment and Vanguard, have signed a letter endorsing the inclusion of real-time pre-trade data in the tape.
The Equities/ETFs consolidated tape aims to provide a single, comprehensive view of trading data across all EU trading venues. It is expected to improve transparency and help investors and regulators monitor market activity. The tape is also seen as a crucial step in creating a true Capital Markets Union in the EU, which would enable companies to raise capital more easily and cheaply, regardless of their location within the EU.