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EC set on consolidated tape, despite protests

Monday 20 September 2010 - by Nicola York

The European Commission looks set to push ahead with plans to introduce a consolidated tape to record all equity trades, despite growing protests from the industry.

At the public hearing on the EU's Markets in Financial Instruments Directive review today in Brussels, panelists expressed concern that a centralised tape would burden the industry with greater costs and would not achieve the desired objectives.

But EC head of Unit securities markets, Internal Market and Services, Maria Velentza questioned why the industry had not yet come up with its own solution to the problems of data reporting and lack of transparency, and said therefore, there would have to be a regulatory solution instead.

Also speaking at the event, Thomson Reuters business manager Andrew Allwright raised concerns over the price of setting up and maintaining such a system.

He said: "How would that be financed? You could build this thing but you would struggle to make it pay, unless you make demand for it.


"There is no clear use case for a real-time consolidated tape. There is demand for a consolidated tape of record, but not a real-time one. I do not see a specific customer need that will be met by that. They do not want a one-size-fits-all solution."


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