EFAMA statement on European exchanges’ bid to run a consolidated equities tape

The European Fund and Asset Management Association (EFAMA) applauds European exchanges‘ recent proposal to create a consolidated tape.
This confirms the buy-side’s long standing belief that a European consolidated tape is critical to completing the Capital Markets Union’s objectives and ensuring that European capital markets remain globally competitive. (eventid=18463), (eventid=16352) EFAMA has identified key use-cases for both institutional and retail investors, including the ability to receive best execution on trades. EFAMA believes that the consolidated equities/ETF tape has the potential to attract more capital flows into mid-cap and small-cap stocks, as well as smaller markets in general. The devil, as with any proposal, will be in the details.
Tanguy van de Werve, Director General of EFAMA, said: “It is our sincere hope that the review of MiFID/R will yield a viable framework for the emergence of a consolidated tape. The recent announcement by 14 exchange groups is welcome in this regard. Nevertheless, it is important that the resulting equities tape displays both pre and post-trade equities/ETF data in real-time. From a cost perspective, the equities/ETF consolidated tape should be provided on a reasonable commercial basis, as already foreseen in MiFID/R. This will ensure wide take-up of the tape in the user community. Finally, the consolidated tape should meet the needs of market participants, and in no way be used to render European exchanges’ own proprietary feeds more attractive.”