European Securities and Markets Authority Publishes Draft Regulatory Technical Standards on Consolidated Tape for Non-Equity Financial Instruments 

the European Securities and Markets Authority published a consultation paper containing draft Regulatory Technical Standards specifying the scope of the consolidated tape for non-equity financial instruments under the Markets in Financial Instruments Directive II. The RTS on the scope of tape for equity instruments was previously endorsed by the European Commission on June 2, 2016. ESMA's proposed draft RTS will amend the endorsed RTS on the equity consolidated tape by adding a list of non-equity asset classes that are to be included in the CTP electronic data stream. The list includes classes of bonds (excluding exchange traded commodities and notes), structured finance products, securitized derivatives, interest derivatives, foreign exchange derivatives, contracts for differences and emission allowances.

Trading venues and approved publication arrangements will send real-time post-trade data to consolidated tape providers, who will then consolidate such data in real time and make the consolidated tape available to the public. The draft RTS specifies criteria to determine the inclusion of a trading venue or APA into a consolidated tape: whether the volume or number of the transactions published for a relevant non-equity asset class is equal to or larger than 2.5% of the total number of transactions in that relevant asset class published in the EU by all APAs and trading venues during the same period. RTS propose that APAs and trading venues satisfying either of the threshold criteria must publish their results on their website by March 1, 2019 and September 1, 2019 (and on the same dates annually thereafter). A CTP will be required to include such data in its electronic data stream as soon as possible, or at the latest, six-months after the criteria has been met. The draft RTS permits CTPs to remove an APA or trading venue from its data stream where it fails to meet the necessary criteria for three consecutive six-month assessment periods. Responses to the consultation are due by December 5, 2016. 

View the consultation paper.