big xyt has created a consolidated tape for European equities and ETFs that enables market participants to track pre- and post-trade volumes.
The tape, which was developed in partnership with one of the world’s largest asset managers, allows firms to monitor consolidated liquidity across the European ecosystem.
This includes unexpected off-book trading activity, trades of unusually large size, pending trades and sudden increases in over-the-counter (OTC) volumes.
The tape is set to benefit trading firms, exchanges, dealing desks and issuers that can gain better insights into liquidity and trading conditions in real-time.
Users can access same-day, consolidated reports on market fragmentation to understand the liquidity of a given stock or exchange-traded product (ETP).
Robin Mess, co-founder and CEO of big xyt, told ETF Stream: “With this step, we are improving the transparency of European ETFs.
“We are delighted to meet growing industry demand for consolidated, normalised and real-time data analytics on European market liquidity, particularly with respect to off-book volumes.”
The lack of a consolidated tape in Europe has historically been one of the biggest structural challenges facing the European ETF market.
In June, the European Council and Parliament agreed to establish a consolidated tape for equities and ETFs that incorporates real-time pre-trade data.
However, the agreement failed to incorporate venue attribution despite asset managers and some sell-side firms pushing for a tape that includes five layers of quotes.
The prospect of a regulated consolidated tape may not be implemented in Europe until 2025 which is a key driver behind big xyt’s decision to create a real-time solution for the market.