EuroCTP, currently the sole bidder for European equity consolidated tape provider (CTP) contract, has chosen to use BMLL’s data quality calibration tools.
The tools and harmonised datasets will be used to validate EuroCTP’s data quality control designs and calibrate thresholds and parameters before the tape’s anticipated go-live.
Niki Beattie, founder and strategist at Market Structure Partners, talking about historical data at exchanges, told Global Trading, that: “Often [exchanges] have not cleaned it and stored it effectively and so their data cannot be easily normalised if taken directly from each underlying exchange as it will come in all different shapes and sizes. Cleaning and maintaining data require a significant amount of work and that is where BMLL adds value. If the CTP needs to provide historical data, it would be easier to get it from a third-party provider like BMLL.”
The European Securities and Markets Authority (ESMA) is expected to decide on a CTP by the end of the year.
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BMLL’s historical datasets, which cover more than 100 trading venues, will help EuroCTP to tackle data gaps before the tape is used.
Last month, the European Fund and Asset Management Association (EFAMA), the European Principal Traders Association (EPTA), and business consulting firm Protiviti issued a letter to ESMA calling for changes to be made to data provisions for the tape.
Paul Humphrey, BMLL CEO, noted, “By offering our historical data and analytics to EuroCTP, BMLL is pleased to contribute to the implementation of the EU consolidated tape for equities and ETFs giving investors clearer, faster, and more reliable insights than ever before.”
Alicia Suminski, principal product manager at EuroCTP, added, “EuroCTP will be making it easier for everyone, from the institutions to everyday investors to access and trust the information they need.”
