Our privacy policy describes how Fidessa uses cookies on our website. If you continue using our website, you are consenting to our use of cookies. OK

Can we FIX the consolidated tape?

I attended the FIX Protocol EMEA quarterly briefing yesterday evening and was asked to sit on a panel to discuss the impact of MiFID II, especially in light of the CESR recommendations that were published the same day. Whilst it was clear that some of my fellow panellists had had more chance than me to read and digest all 162 pages of the report, the thorny issue of having a consolidated post-trade tape featured strongly in the discussions.

The problem is that without clear, timely and complete execution data it’s difficult for the buy-side to understand liquidity patterns and evaluate execution quality properly. This goes right to the heart of MiFID’s original objective as it’s pretty difficult to demonstrate best execution if you can’t measure it accurately. This was tricky enough pre-MiFID but is made harder still by the fact that the multitude of new venues that have emerged since November 2007 all unilaterally created their own (often conflicting) acronyms for describing different trade types.

The intriguing possibility was raised that maybe FPL themselves could play a role in trying to agree a common set of standards for the production of such a tape. Once the rules were agreed then it could be left to market forces to allow different firms to create and market their own products. FPL represents a very well respected professional body that has done a great job in developing and disseminating the FIX Protocol across the finance industry. And, crucially, it is one of the few organisations that is consistently able to get market participants to set aside their own vested interests for the greater good of the industry.

It’s an important issue because if we can’t sort this out for ourselves, then CESR will come along and take our toys away completely and impose a utility based Mandated Consolidated Tape (MCT) as we have in the US. If CESR does go down this route then it’s hard to see how the whole thing wouldn’t be hijacked by all the different political interests of Europe’s member countries which would be to the detriment of everyone.

Anyway, have your say:

[poll id=”5″]

And, if you have a better idea, we’d love to hear it!

Leave a comment

Copyright © 2018 Fidessa group plc. All rights reserved.

The information contained within this website is provided for informational purposes only. Fidessa will use reasonable care to ensure that information is accurate at the time it is made available, and for the duration that it remains on the site. The information may be changed by Fidessa at any time without notice. We also reserve the right to close the website at any time. No representation or warranty, expressed or implied, is given on behalf of Fidessa or any of its respective directors, employees, agents, or advisers as to the accuracy or completeness of the information or opinions contained herein or its suitability for any purpose and, save in the case of fraud, all liability for direct, indirect, special, consequential or other loss or damages of whatever kind that may arise from use of the website is hereby excluded to the fullest extent permitted by law. Any decisions you make based on the information in this website are your sole responsibility and information on the website should not be relied upon in connection with any investment decision.

The copyright of this website belongs to Fidessa. All other intellectual property rights are reserved.

Fragulator® is a registered trademark of Fidessa group plc.

Reproduction or redistribution of this information is prohibited except with written permission from Fidessa.