Aquis and Cboe Join Forces to form SimpliCT
Aquis Exchange PLC and Cboe Europe are joining forces in a collaborative effort. They aim to explore a bid to become the EU’s official provider for the equity consolidated tape (CT).
About the EU Equity Consolidated Tape (CT)
The EU has mandated a single, comprehensive provider for an equity consolidated tape as part of the Markets in Financial Instruments Regulation (MiFIR) Review. It aims to enhance market transparency across European equities. The MiFIR Review officially came into effect in April 2024.
Aquis Exchange and Cboe Europe’s Joint Venture: SimpliCT
Aquis Exchange and Cboe Europe plan to operate under a joint venture named SimpliCT. This entity will leverage the strengths and expertise of both companies equally. Each organization will hold a 50% ownership in SimpliCT. The joint venture will be headquartered in the Netherlands — for its strategic position within the EU financial market. SimpliCT aims to capitalize on the combined experience of its founders to create a best-in-class consolidated tape for the EU equities market.
Features and Governance of SimpliCT
SimpliCT plans to establish a dedicated management team to oversee its operations. Additionally, an industry advisory committee will be formed to provide insights and guidance on market needs and regulatory expectations. Aquis Exchange and Cboe Europe will contribute their expertise, advanced technology, and operational capabilities to ensure the platform’s success and efficiency.
Effects on Traders
This move will have these effects on users:
Market Transparency
A consolidated tape will provide real-time pre and post-trade data. It will help traders and investors see the entire EU equities market’s transactions in one place.
Price Discovery
Price discrepancies across platforms could decrease with all trades available in one feed. Traders can more accurately assess the best prices available.
Cost Efficiency
A single consolidated tape reduces costs associated with purchasing data feeds from multiple sources. Investors and traders can access comprehensive data at a potentially lower price.
Liquidity
Real-time access to all trading activity in EU equities may attract more participants, increasing liquidity. Greater liquidity can lead to tighter bid-ask spreads.
About Aquis Exchange
Aquis Exchange PLC is a UK-based company. It offers a unique, subscription-based equities trading model across 16 European markets. It provides services for growth-focused companies. Unlike traditional exchanges, Aquis uses a pricing model based on message volume.
About Cboe Global Markets
Cboe Global Markets operates a derivatives and securities exchange network. It provides trading solutions and products across multiple asset classes, including equities, derivatives, and FX in North America, Europe, and Asia Pacific.
Summing Up
If successful, SimpliCT’s bid could improve transparency and data flow in the EU equities trading space. The consolidated tape is expected to provide a standardized data source.
Register your company now and get featured on our homepage!
