Tradeweb, MarketAxess and Bloomberg scrap joint bond data plan (updated)

Tradeweb Markets

08/12/2023 14:49

(Writes through with more detail)
    By Huw Jones
       LONDON, Dec 8 (Reuters) - Tradeweb  TW.O , MarketAxess
 MKTX.O  and Bloomberg have scrapped joint plans to provide a
single real-time feed of bond prices from across Europe to help
investors spot the best deals, citing complexity and costs,
leaving Wall Street ahead of the competition.
    The U.S. has long had so-called "consolidated tapes" which
provide a feed of stock and bond prices transacted across
markets, with the European Union and Britain wanting similar
services to deepen their capital markets.
        The EU approved rules earlier this year for creating
consolidated tapes of stock and bond prices from trading
platforms to give investors a market-wide snapshot of activity.
    Currently, only big investors like asset managers and banks
have deep enough pockets to pay for individual price feeds from
each of the main trading platforms.
    "Various developments in recent months have added further
clarity to the risk and complexity of delivering this project
under a joint venture from our three firms," Bloomberg,
MarketAxess and Tradeweb said in a joint statement.
    "For example, uncertain outcomes around product definitions
and structural complexities would significantly increase the
timeline and costs associated with this approach. As such, after
careful consideration, we have jointly agreed to end our
engagement in this venture."
    Market participants are mulling whether to put in bids to EU
and UK regulators to win approval to gather prices that
platforms would have to provide in return for a fee.
        The three companies had announced in May they had set up
an independent company to offer a price feed for corporate and
government bond trading, with cloud-based financial data
management firm FINBOURNE Technology selected to provide the
technology to build and operate the tape.
    The three companies said they remain independently committed
to working with regulators and the industry to contribute to
"this very important initiative".
    LDC, the private equity arm of Lloyds Banking Group, said in
December last year that it had made a "significant investment"
in capital markets technology firm Etrading Software.
    Etrading, which has said the investment would strengthen its
proposition to create a consolidated tape for fixed income in
Britain and Europe, had no immediate comment on its latest
plans.
        
    European stock exchanges such as Deutsche Boerse and
Euronext have joined forces to create EuroCTP to bid to the EU's
securities watchdog ESMA to offer a tape in share prices.

 (Reporting by Huw Jones
Editing by Mark Potter and Elaine Hardcastle)
 ((huw.jones@thomsonreuters.com; +44 207 542 3326; Reuters
Messaging: huw.jones.thomsonreuters.com@reuters.net))