Exclusive: Euronext to Discontinue FX Tape Streaming Service

The termination will occur around 31 December 2020, and, as a consequence, the FX Tape volume chart will be removed.

Finance Magnates has learned that Euronext, which operates the biggest pan-European exchange, will discontinue its FX Tape service, which provides a central reference point for prices of spot FX transactions.

The termination will occur around 31 December 2020 and, as a consequence, the FX Tape volume chart will be removed from the Euronext FX website.

“After thorough review and following the feedback of the main contributors and users, Euronext has decided to discontinue the FX Tape. While the tape is actively used by a number of FX market participants, we didn’t experience the broad participation we had hoped for,” the exchange operator said.

Initially launched three years ago with FastMatch, Euronext FX Tape is modelled on similar projects for other asset classes such as equities, and it consists of ECNs, banks and other financial institutions engaged in the FX market to provide a last-sale data feed with price, size and timestamps. The idea itself makes sense due to the decentralized and international nature of the FX markets and the lack of a single regulatory authority sitting above it.

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Participation in the FX Tape™ is voluntary under an open access model, with FX Tape offering commercial incentives to encourage ECNs to contribute data. This includes allowing contributors to obtain a percentage of the net revenue generated by FX Tape according to the volume they contributed with.

In other words, ECNs and other contributors were getting more credit the more trades that they provided, which created a financial incentive for a diversified set of participants to start reporting.

Euronext decided to pull the plug as the FX Tape recently reported one of its strongest metrics since it was launched in September 2017. The multi-broker venue reported $129 billion per day in November and $2.7 trillion in total national turnover. The ADV figure marks a 10.2 percent monthly increase and an impressive 75 percent year-on-year increase. Moreover, November 30 marked the busiest day at the Tape service since March when record peaks were established.

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