New company sets out to offer EU bond trading price feed

Tradeweb Markets

23/05/2023 08:00

By Huw Jones
       LONDON, May 23 (Reuters) - MarketAxess  MKTX.O ,
Tradeweb  TW.O  and Bloomberg have set up an independent company
to offer a real time pan-European Union single price feed for
corporate and government bond trading.
    The three firms said in a joint statement on Tuesday that
industry veteran Neil Ryan will lead the 'consolidated tape'
initiative, that would need EU regulatory approval.
    The bloc is finalising rules to set up tapes, which are a
real-time record of transaction prices, in stocks, derivatives,
bonds and exchange traded funds to help improve availability and
ease of price information to retail and institutional investors,
seen as key to a deeper and more competitive capital market.
    Cloud-based financial data management firm FINBOURNE
Technology has been selected to provide the technology to build
and operate the bond tape for the new company.
    The proposed tapes have faced opposition, in particular from
stock exchanges whose market data is a key revenue source. The
bourses would have to provide this in return for a portion of
the tape's fee paid by users.
    Ryan, who has worked for Lehman, UBS, Wells Fargo and the
Irish government, said the goal is to create a cost-effective
bond tape that treats contributors and consumers fairly.
    "Our motivation is to improve transparency and spur
electronification in the fixed income space," Ryan said.
    Once the EU rules have been agreed by the European
Parliament and EU states, the bloc's securities watchdog ESMA
would start a public tender process later this year or early in
2024 to select and authorise providers of tapes.
    Tech firm Etrading Software, backed by Lloyds Banking Group
 LLOY.L , is also showing an interest in creating a tape.
    There are already stock and bond tapes on U.S. markets, and
Britain is also considering a fixed income market tape. 

 (Reporting by Huw Jones; Editing by Alexander Smith)
 ((huw.jones@thomsonreuters.com; +44 207 542 3326; Reuters
Messaging: huw.jones.thomsonreuters.com@reuters.net))