Finbourne Technology and Propellant Digital have officially launched their joint consolidated tape provider (CTP) venture, Bondtape.
“Propellant already has the infrastructure for aggregating MiFID data, and we can leverage Finbourne’s scalability to bring the target solution to life,” Vincent Grandjean, founder and CEO of Propellant Digital, told The DESK.
“We’ve been dealing with the data for a long time. Propellant Digital have worked with ICMA, we’ve provided information and analysis to AFME,” added Bondtape’s Neil Ryan.
The companies state that their offering will reduce operational complexity and increase transparency across financial services, providing a “clear and consistent view of fixed income markets”.
BondTape is in competition with Etrading Software, which confirmed its plans to bid for the CTP last December, and fairCT, a consortium led by Ediphy which entered the race in September. ESMA will launch its selection process for the European tape on 3 January 2025, while the UK’s FCA expects to begin the process before year-end. The tapes are expected to go live in 2026.
READ MORE: Meet the consolidated tape providers
During a panel discussion earlier this year, Neil Ryan affirmed that the CTP needs to be user led, with clear use cases presented and strong market engagement. “There’s no mandatory consumption, nobody has to use this after all the heartache and blood, sweat and tears,” he told The DESK. “However, I think that we’ve collectively developed a good sense of trust from the buy side and the sell side around the understanding of the data. That trust element is a huge piece.”
“We’ve been engaging very proactively, especially on the UK side, with the regulators as they get ready for the tender. Firms that have expressed interest are engaging across the board.”
“It’s a two-way street. There’s a lot of time, effort, and energy being spent on this, but equally the buy and sell sides need to make sure that they’re stepping up. I think that we can bridge that gap because of our combined strengths.”
Clarity is still needed on the structure of the tender in the UK, Ryan added, “and although the EU one is quite prescribed, there’s still going to be more definition needed on some things. There’s still some way to go, in a short time. It’s going to be a very busy Christmas and New Year’s.”
“A little change in the RFP could have a huge impact on the cost and the infrastructure,” agreed Grandjean.
©Markets Media Europe 2024
