MFA submitted a comment letter to ESMA regarding technical standards for Consolidated Tape Providers (CTPs) and the CTP selection process.
MFA supports the concept of a consolidated tape (CT) and believes it can significantly enhance EU market competitiveness, similar to the benefits seen with the US TRACE system. MFA stresses the importance of providing flexible, “a la carte” pricing options for CT services, allowing managers to subscribe only to the data they need, avoiding an “all or nothing” approach.
Key points from MFA’s comments include:
- CTP should undergo checks for data completeness, format, erroneous trades, and timeliness.
- Machine readability and use of standardized transmission protocols (e.g., FIX) are essential for investment management firms.
- Revenue redistribution for equity shares and ETFs must be narrowly tailored to ensure fair pricing and prevent abuse, with ESMA able to discontinue arrangements in case of violations.
- MFA recommends a consultative working group of CT stakeholders to address issues and concerns with the CTP and ESMA
