Industry Updates

Vanguard, Invesco and AXA IM join 17 backers of Adamantia consolidated tape bid

The additional support comes a month after EU bodies entered a trialogue discussion on the trading infrastructure

Jamie Gordon

Map of Europe

Vanguard, Invesco and AXA Investment Managers are the latest asset managers to join a group bid to establish an EU consolidated tape led by consultancy firm Adamantia.

The proposed bid is now backed by 17 buy and sell-side participants looking to establish an ETF and equities tape based on real-time pre and post-trade data, provided at reasonable cost.

“With the new participants onboard the extended group is pursuing its work on the framing of a trusted and usable consolidated tape for the benefits of the whole Capital Markets industry,” Adamantia said.

The consultancy told ETF Stream it is currently selecting the best-positioned IT provider to operate the technology underlying the consolidated tape and set up the programme to prepare for a potential bid to operate the trading infrastructure.

It added this is contingent on a “positive outcome” of the current trialogue process between EU bodies, with the inclusion of pre-trade data in the tape being a “clear prerequisite” for the group.

The user-led group went public last month with backing from BlackRock, Credit Agricole, Barclays, Société Générale, UniCredit and others.

This followed a feasibility study by Adamantia last year which confirmed the technical and economic viability of operating a pre and post-trade tape. 

Tilman Lueder, head of securities markets at the European Commission, said at ETF Stream’s ETF Ecosystem Unwrapped event the provision of a tape with real-time pre-trade data relies on asset managers making a commercial commitment rather than technological limitations. 

“This is the first legislative process in a long time that is in reality a commercial negotiation between two sides that are not directly at the table,” he said.

“It is all about the money. This is an interesting juncture in the negotiation as we cannot expect data contributors to contribute data to a counterpart that is not willing to negotiate on the price of that data.”

The rival side of the debate came in the form of a bid proposal in February by a consortium of 14 exchange operators supporting the European Council’s proposal for a consolidated tape based on pre-trade data provided on a post-trade basis.

Last month, the European Fund and Asset Management Association (EFAMA) published an open letter co-signed by 18 asset managers aligned with Adamantia’s group bid and the European Parliament’s tape proposal.

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