Brussels (The Brussels Morning Newspaper) – The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published additional particulars on the selection of Consolidated tape providers (CTPs) for bonds and shares and Exchange-Traded Funds (ETFs).
ESMA will undertake the selection procedure for the CTP for bonds on Friday 3 January 2025. This is the first operational day for EU Institutions after Sunday 29 December 2024, the date set out in Article 27da(1) of MiFIR. ESMA plans to adopt a reasoned decision on the selected applicant within 6 months of the takeoff, i.e. by early July 2025. In June 2025, ESMA will undertake the selection procedure for the CTP for shares and ETFs with the intent to adopt a reasoned decision on the selected applicant by the end of 2025.
How will ESMA evaluate applicants for consolidated tape providers?
Each selection procedure will be undertaken with the publication of a contract notice and procurement documents on the EU Funding & Tenders Portal. Prospective applicants are requested to register and familiarise themselves with the Portal. In the forthcoming weeks, ESMA intends to share additional recommendations on the assessment of exclusion criteria.
ESMA will be unrestricted to answer questions throughout the application period. Applicants will be given as much time as possible, within the limitations of EU procurement rules, to provide facts on their projects. Announcement on the takeoff dates of the first selection procedures for the CTP for bonds and equities strives to foster a successful match with multiple solid offers in transparent and fair selection procedures.
What role does MiFIR play in CTP selection procedures?
The Markets in Financial Instruments Regulation (MiFIR) forms the timelines to prompt and conclude the selection procedures for CTPs. Article 27da(1) of MiFIR envisions the initiation of the first selection procedure for bonds by 29 December 2024, and the initiation of the first selection procedure for shares and ETFs within six months of the initiation of the selection procedure for bonds.
The selection processes for CTPs will be subject to the regulations applicable to concession contracts, as laid down in the Financial Regulation (Regulation (EU, Euratom) 2018/104636), which specifies the steps and timelines to follow.
In May 2024, ESMA issued a Consultation Paper on draft technical standards linked to the CTPs and on the specifications of the assessment standards for the CTP selection procedure.
In December 2024, earlier to the launch of the first selection procedure, ESMA will issue a feedback statement on this Consultation Paper, including the definitive draft technical standards that will be presented to the European Commission.
