Bloomberg, MarketAxess and Tradeweb have entered into an agreement to establish a joint venture company to operate a fixed income consolidated tape provider (CTP) in the European Union region. A CTP is a company that collects and publishes consolidated trade data for financial instruments.

Electronification of Fixed Income Industry

Tradeweb announced the deal on Tuesday, noting that the companies have tapped industry veteran Neil Ryan to lead the initiative. The Nasdaq-listed electronic markets operator noted that the move reflects the three firm’s desire to enhance transparency and promote electronification in the fixed-income industry.

“The time has come to provide the European fixed income markets with a consolidated tape that is led by an initiative with deep experience in low-latency data processing, cleansing, consolidation and publishing within a regulated framework,” Ryan said in the statement. “Our end goal is a cost-effective CT that treats both data contributors and consumers fairly, while enabling open and impartial access to meaningful and helpful data using existing infrastructure.”

Meanwhile, Tradeweb in the statement noted that the three firms have onboarded FINBOURNE Technology, a cloud-native financial data management firm, to help its build and operate the CTP on behalf of the new joint venture firm.

“FINBOURNE’s appointment was the culmination of a detailed and rigorous evaluation process, which considered critical compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term, operational, technical and security aspects of a fit-for-purpose CT,” Tradeweb said.

CTPs in Europe

In Europe, the European Union demands that CTPs provide data for all trades that take place in the jurisdiction regardless of where they originate from. The data are usually sent to market participants through various methods including through free websites or subscription-based services.

CTPs are overseen by the European Securities and Markets Authority. They help to foster transparency and liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term provision in European financial markets.

Additionally, CTPs help in creating an equitable financial market by providing access to the same information to all market participants regardless of their locations. Furthermore, they contribute to ensuring efficient pricing of financial instruments.

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