Bloomberg, MarketAxess, Tradeweb Step Back from Trade Data Joint Venture

by Jared Kirui
  • The companies have cited uncertainties surrounding the joint venture.
  • This project was aimed at enhancing the fixed-income consolidated tape provider space in the EU and the UK.
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Bloomberg, MarketAxess, and Tradeweb have abandoned their plans to establish an independent entity that will bid as the fixed-income consolidated tape provider (CTP) in the European Union and the United Kingdom.

This unexpected decision happened as a result of mounting complexities and uncertainties surrounding the venture, according to a statement shared by Tradeweb.

This collaboration was poised to revolutionize the fixed-income CTP space in the EU and the UK. However, in recent months, a series of important developments have steered the companies away from their aspirations for the joint venture.

Uncertainty in Europe's CTP Landscape

One of the primary factors behind this change is the uncertainty surrounding an important element of this project. According to the company, there is a challenge related to the uncertain outcome of the product of the joint venture.

Tradeweb mentioned that: "As such, after careful consideration, we have jointly agreed to end our engagement in this venture. We remain independently committed to working with regulators and the industry to contribute and drive further progress towards this very important initiative."

In May, Bloomberg, MarketAxess, and Tradeweb teamed up to pioneer a fixed-income CTP within the EU. This was followed by the appointment of industry veteran Neil Ryan to lead this initiative, which sought to promote electronification in the fixed-income industry.

Under the leadership of Ryan, the joint venture aimed to address the need for a consolidated tape (CT) that leverages low-latency data processing, cleansing, consolidation, and publishing, all within a regulated framework. Ryan mentioned that the ultimate goal was to establish a cost-effective CT that prioritizes fairness for data contributors and consumers.

FCA's Regulatory Stance on CTPs

According to the Financial Conduct Authority (FCA), CTPs play a crucial role in the European financial landscape. Mandated by the EU, these entities are tasked with providing trade data within the jurisdiction, irrespective of their origin.

Their function involves disseminating data to market participants and ensuring equitable access to information across geographical locations. Moreover, according to the UK's regulator, CTPs contribute to the efficient pricing of financial instruments, fostering fairer and more accessible markets.

Under the EU's second Markets in Financial Instruments Directive (MiFID II ), the UK has embraced a regime that allows multiple competing CTPs per asset class.

Bloomberg, MarketAxess, and Tradeweb have abandoned their plans to establish an independent entity that will bid as the fixed-income consolidated tape provider (CTP) in the European Union and the United Kingdom.

This unexpected decision happened as a result of mounting complexities and uncertainties surrounding the venture, according to a statement shared by Tradeweb.

This collaboration was poised to revolutionize the fixed-income CTP space in the EU and the UK. However, in recent months, a series of important developments have steered the companies away from their aspirations for the joint venture.

Uncertainty in Europe's CTP Landscape

One of the primary factors behind this change is the uncertainty surrounding an important element of this project. According to the company, there is a challenge related to the uncertain outcome of the product of the joint venture.

Tradeweb mentioned that: "As such, after careful consideration, we have jointly agreed to end our engagement in this venture. We remain independently committed to working with regulators and the industry to contribute and drive further progress towards this very important initiative."

In May, Bloomberg, MarketAxess, and Tradeweb teamed up to pioneer a fixed-income CTP within the EU. This was followed by the appointment of industry veteran Neil Ryan to lead this initiative, which sought to promote electronification in the fixed-income industry.

Under the leadership of Ryan, the joint venture aimed to address the need for a consolidated tape (CT) that leverages low-latency data processing, cleansing, consolidation, and publishing, all within a regulated framework. Ryan mentioned that the ultimate goal was to establish a cost-effective CT that prioritizes fairness for data contributors and consumers.

FCA's Regulatory Stance on CTPs

According to the Financial Conduct Authority (FCA), CTPs play a crucial role in the European financial landscape. Mandated by the EU, these entities are tasked with providing trade data within the jurisdiction, irrespective of their origin.

Their function involves disseminating data to market participants and ensuring equitable access to information across geographical locations. Moreover, according to the UK's regulator, CTPs contribute to the efficient pricing of financial instruments, fostering fairer and more accessible markets.

Under the EU's second Markets in Financial Instruments Directive (MiFID II ), the UK has embraced a regime that allows multiple competing CTPs per asset class.

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