The European Securities and Markets Authority published guidance urging market participants to prepare for the start of the Consolidated Tape Provider (CTP) for bonds, clarifying the expected timing for the delegated acts underpinning the CTP and bond transparency regime and how any transition period could work. ESMA expects the European Commission to adopt shortly the draft regulatory technical standards it published on 16 December 2024, with no indication of substantial changes. It encouraged market participants to use the draft standards to complete preparatory work, including requirements for data contributors’ connectivity and data contribution to the CTP, CTP input and output data specifications, business clock synchronisation, and bond transparency standards. On implementation, the bond CTP selection process launched in January 2025 remains on track, with a reasoned decision on the selected applicant intended by early July 2025; ESMA recommends that data contributors engage with the selected entity on connectivity, licensing, and other technical and practical arrangements once the selection concludes. The successful applicant will be selected for a five-year operating period and invited to apply for authorisation without delay, with the authorisation timeline depending on the completeness of the submission and responsiveness to ESMA requests. ESMA noted that Markets in Financial Instruments Regulation (MiFIR) allows a transitional period if requested, but indicated any such period would be short and advised firms to prepare without assuming an extended post-authorisation transition.
European Securities and Markets Authority 2025-04-02
European Securities and Markets Authority clarifies bonds consolidated tape timeline and warns against relying on a prolonged transition period
The European Securities and Markets Authority (ESMA) has issued guidance for market participants to prepare for the Consolidated Tape Provider (CTP) for bonds, emphasizing draft regulatory technical standards for preparatory work. The bond CTP selection process, initiated in January 2025, is on schedule, with a decision expected by early July 2025. ESMA advises firms to prepare for a short transitional period under the Markets in Financial Instruments Regulation (MiFIR) and to engage with the selected CTP entity on technical arrangements post-selection.