Aquis, Cboe Seek to Become EU’s Consolidated Tape Provider: Plan Joint Venture

Aquis Exchange and Cboe Europe today (Tuesday) announced their intentions to form a joint venture to explore a bid to become the EU’s equity consolidated tape provider. The new company, SimpliCT, is planned to be based in the Netherlands.

An equity consolidated tape (CT) is an electronic system that collects and distributes real-time market data on prices and volumes of exchange-listed stocks. Such a system aims to provide a comprehensive overview of transactions for specific assets on both over-the-counter and trading venues.

A Timely Move

The plans of the two companies come ahead of the EU’s selection process for the equity CT provider, expected to begin in June 2025, with a successful applicant to be chosen by the end of next year.

The goal of the new company would be to offer a comprehensive and cost-effective view of market activity, supported by a commercial and governance framework to ensure fair treatment of both data contributors and consumers.

This proposal follows a mandate from the European Commission requiring the establishment of a single entity to operate a real-time pre- and post-trade CT for equities for five years. The rule changes came under the MiFIR Review, which took effect in April 2024.

Bringing Expertise to the Table

“As one of the most important market infrastructure developments introduced by the EU in recent years, this requires a provider with the necessary technical, operational, and commercial expertise, aligned with policymakers' vision and objectives for the tape,” said Natan Tiefenbrun, President of North American and European Equities at Cboe Global Markets, of which Cboe Europe is a division.

“SimpliCT has been created to meet this ambitious goal by seeking to leverage the leading capabilities of its founder firms and their unwavering commitment to success.”

According to the announcement, Aquis and Cboe will be equal shareholders in the venture, contributing “expertise, technology, and capabilities.” They will also establish a management and advisory committee in due course.

“This proposed joint venture would not only represent a cost-effective, robust business model that integrates advanced, complementary, proprietary technologies,” added Alasdair Haynes, Aquis’s CEO, “but would also be designed to deliver fair compensation for data contributions, aligning the interests of contributors and consumers.”