By Mark McSherry
London-based challenger exchange Aquis and Cboe Europe, a division of Chicago-based Cboe Global Markets, have announced their intention to form a joint venture which plans to explore a bid to perform the role of the EU’s equity consolidated tape (CT) provider.
The selection process for the EU equity CT is expected to begin in June 2025, with a successful applicant chosen by the end of 2025.
Aquis and Cboe said they are operators of pan-European equity exchanges, technology and reporting services that collectively process over half of daily European equity trades.
The firms said they plan to establish and co-own a new company named SimpliCT which will be based in the Netherlands and seek to leverage the expertise of its founders to develop a best-of-breed equity CT.
They said: “SimpliCT’s aim would be to deliver a high-quality and reliable consolidated tape that provides a simplified, comprehensive and cost-efficient view of market activity, benefiting the widest possible range of participants. It would be supported by a commercial and governance framework designed to ensure fair treatment of both data contributors and consumers.
“This initiative exemplifies Aquis and Cboe’s shared commitment and strong track record in developing pan-European solutions aligned to the vision of the EU’s Capital Markets Union. The goal is to enhance the competitiveness of EU equity markets and attract global capital flows by increasing the visibility of European issuers both within Europe and internationally, while making European markets simpler and cheaper to access.”
Natan Tiefenbrun, President, North American and European Equities, Cboe Global Markets, said: “As a firm that has consistently championed for the introduction of a consolidated tape, we are thrilled to be launching SimpliCT in partnership with Aquis, who share our long-held belief in the significant benefits a well-operated and governed tape can bring to EU capital markets.
“As one of the most important market infrastructure developments the EU has introduced for many years, it requires a provider that has the necessary technical, operational, and commercial expertise, and is aligned to policy makers’ vision and objectives for the tape.
“SimpliCT has been created to meet this ambitious goal, by seeking to leverage the leading capabilities of its founder firms and their unwavering commitment to see it succeed.”
Aquis CEO Alasdair Haynes said: “Aquis has long been an advocate of a consolidated tape in Europe, and is delighted to be partnering with Cboe, an operator that has been similarly steadfast in its commitment. The advantages to the industry of establishing a tape have been clear for many years, and both Aquis and Cboe have been strong supporters.
“Together with Cboe, we have identified a clear opportunity to serve the financial community as an independent and competitive operator through the formation of SimpliCT.
“This proposed joint venture would not only represent a cost-efficient, robust business model that integrates advanced complementary, proprietary technologies, it would also be designed to deliver fair compensation for data contribution, aligning the interests of contributors and consumers.”