Paper on the Market Structure Partners Study on the creation of an EU Consolidated Tape

The Federation of European Securities Exchanges (FESE)’s report examines the potential implications and alternatives to the European Commission’s initiative to propose legislative changes by Q4 2021 to support a real-time Consolidated Tape (CT).

The Report outlines several concerns regarding the feasibility, cost, and potential market impact of implementing a real-time CT. FESE highlights significant challenges, including the risk of market manipulation, high implementation costs, and technological barriers that could disproportionately affect certain market participants, particularly retail investors.

As a more pragmatic and cost-efficient alternative, FESE proposes the development of a post-trade “Tape of Record” (ToR), which would aggregate and disseminate trading data after market close, ensuring transparency without introducing the complications associated with real-time data dissemination.