Ediphy Wins First ESMA EU Consolidated Tape Provider Mandate for Fixed Income Markets

The European Securities and Markets Authority (ESMA) has selected Ediphy (fairCT) as the first Consolidated Tape Provider (CTP) for bonds in the European Union, marking a significant milestone in the bloc's efforts to create a unified view of fixed income market activity.

The decision represents the culmination of a six-month assessment process in which ESMA evaluated applications against criteria outlined in the Markets in Financial Instruments Regulation (MiFIR). ESMA determined that Ediphy (fairCT) met all selection criteria and achieved the highest overall score on the award criteria.

Natasha Cazenave, ESMA's Executive Director, said: "With today's decision, we are taking a decisive step towards setting up consolidated tapes in the EU. This step constitutes a key contribution to building the Savings and Investment Union (SIU) and to the further development of capital markets in Europe. Market participants will benefit from a consolidated view of market activity for bonds in the EU, with a variety of use cases to the benefit of all participants in the EU's fixed income markets."

The consolidated tape initiative aims to provide market participants with comprehensive real-time and delayed price and volume data across EU bond markets. Currently, bond market data is fragmented across multiple trading venues and platforms, making it difficult for investors to obtain a complete picture of market activity.

Ediphy is a FinTech company specialising in fixed income markets and has been engaged with consolidated tape developments since the introduction of MiFID II in 2018. The company's fairCT initiative has been specifically developed to address the regulatory requirements for consolidated tape provision in European markets.

Under the arrangement, ESMA will now invite Ediphy (fairCT) to apply for authorisation without delay. Following authorisation, the company would operate the CTP for bonds for a five-year period under ESMA's direct supervision.

The establishment of a consolidated tape for bonds forms part of the European Commission's broader Capital Markets Union initiative, which seeks to deepen and integrate capital markets across the EU to support economic growth and provide alternative funding sources for businesses.