Brian Higgins, partner at Dillon Eustace, has said asset managers have a “clear preference” for a consolidated tape that has as many as five layers of bid and offer quotes.
In a recent ETF Stream webinar, titled ETF Investigations: Consolidated tape arrives in Europe, Higgins said he understood there is a level of compromise, however, stressed the importance of greater transparency.
In June, the European Council, Commission and Parliament agreed to establish a consolidated tape for equities and ETFs with live pre-trade data, however, without venue attribution and only one layer of bid and offer quotes.
Asset managers and some sell-side firms have been pushing for a consolidated tape that includes five layers of quotes as well as venue attribution, something exchanges were against throughout the negotiations due to concerns around loss of revenues.
“In 2020, the European Commission suggested [introducing] five layers of bid and offer quotes as this was felt it would give the greatest transparency in terms of liquidity and pricing, however, it is not in the draft proposal,” Higgins explained.
“There is a clear preference for five layers of quotes as this will give the buyside a clearer picture and allow more accurate prices.”
Speakers in this webinar include:
Susan Yavari, Senior Regulatory Policy Adviser at EFAMA
Rosa Armesto, Deputy Director General at the Federation of European Securities Exchanges
Brian Higgins, Partner at Dillon Eustace
ETF Investigations is a new webinar series from ETF Stream which examines the key issues facing ETF investors in Europe. To watch a full replay of this webinar, click here.