Aquis Exchange and Cboe Europe Collaborate to Launch SimpliCT
Aquis Exchange PLC and Cboe Europe are embarking on a significant journey together. They have announced the formation of a joint venture called SimpliCT. This innovative venture aims to explore the provision of the EU's equity consolidated tape (CT) and is expected to revolutionize how market data is shared and utilized.
Understanding SimpliCT
SimpliCT, which is pronounced as simplicity, is envisioned to deliver a high-quality consolidated tape that simplifies and enhances the accessibility of market information. Both Aquis and Cboe are recognized as leading operators within the European equities market, processing a substantial volume of trades daily. Their combined expertise positions SimpliCT to effectively serve a variety of market participants.
The Role of Aquis and Cboe
Aquis and Cboe will participate equally as shareholders in SimpliCT. They are committed to establishing a dedicated management team and bringing together industry experts to oversee operations. The expectation is that if they succeed in the selection process, both will leverage their unique strengths to build a platform that reflects market needs.
Benefits for Market Participants
The initiative is intended to provide a cost-efficient and comprehensive view of market activity. The project is designed to benefit a wide spectrum of participants—from institutional investors to retail traders—making European markets more appealing and simpler to navigate. Key benefits include improved market transparency and reduced barriers to entry for potential investors.
Supporting Market Development
By launching SimpliCT, Aquis and Cboe illustrate their shared commitment to advancing the EU's Capital Markets Union. This joint effort is aimed at enhancing competitiveness within EU equity markets by increasing visibility for issuers both across Europe and on the global stage.
The Importance of a Consolidated Tape
A consolidated tape is important for the equity markets as it integrates and simplifies trade data from multiple sources, making it easier for investors to make informed decisions. This initiative aligns with the European Commission's mandate for a single entity to manage a real-time pre- and post-trade tape, following progressive developments under the MiFIR Review.
Statements from Leadership
Natan Tiefenbrun, President of North American and European Equities at Cboe Global Markets, emphasized the significance of launching SimpliCT. He noted that a well-managed consolidated tape can fundamentally benefit EU capital markets, facilitating better investment decisions. Aquis’s Chief Executive, Alasdair Haynes, echoed these sentiments, stating that their partnership with Cboe is rooted in a mutual belief of the advantages a consolidated tape will bring to the industry.
Future of SimpliCT
As the timeline for the selection process unfolds, the market anticipation surrounding SimpliCT continues to build. Both companies are well-equipped to establish a robust and technically advanced operation that aligns with regulatory objectives, further benefitting European investors.
About the Companies
Aquis Exchange is famed for its challenger role in the financial market, employing cutting-edge technology and innovative trading rules to create efficient trading environments. Meanwhile, Cboe Global Markets is known worldwide for its derivatives and securities exchange networks, providing diverse trading solutions across multiple asset classes.
Frequently Asked Questions
What is SimpliCT?
SimpliCT is a joint venture between Aquis Exchange and Cboe Europe aimed at developing the EU's equity consolidated tape for market data sharing.
What are the benefits of a consolidated tape?
A consolidated tape provides a unified view of market activities, enhancing transparency, and assisting investors in making informed decisions.
Who will manage SimpliCT?
A dedicated management team along with an advisory committee will be appointed to oversee operations, utilizing the expertise of both Aquis and Cboe.
How will this impact European equity markets?
The initiative is designed to make European equity markets more competitive and accessible, attracting both local and international investors.
When will the selection process begin?
The selection process for the consolidated tape provider is expected to commence in June 2025, with a successful applicant announced by the end of that year.
