SIX has confirmed its intention to withdraw from EuroCTP should Aquis continue exploring its own bid to act as the European Union’s equity consolidated tape provider.
EuroCTP, formed in 2023, is a joint venture of fourteen exchanges planning to tender for the provision of a consolidated tape for financial trading in the EU.
In October, however, Cboe Europe and Aquis announced their own initiative, SimpliCT, which intends to compete with EuroCTP’s bid for the provision of the EU’s equity consolidated tape.
Given the conflict, SIX said that once the acquisition is completed, “if Aquis continues to explore or is pursuing a bid to perform the equity consolidated tape provider role, SIX intends to withdraw from EuroCTP.
While SIX has agreed to purchase 100% of Aquis in an all-cash deal, “Aquis will continue to operate under its existing brand and business model,” commented Bjorn Sibbern, global head of exchanges at SIX.
SIX therefore takes on a 50% stake in SimpliCT. The new company, formed in conjunction with Cboe, will be established in the Netherlands and aims “to deliver a high-quality and reliable consolidated tape that provides a simplified, comprehensive and cost-efficient view of market activity, benefiting the widest possible range of participants.”
The European Commission has ordered the creation of a single entity to operate a consolidated tape for equities for five years as part of the MiFIR Review.
The selection process, delegated to the European Securities and Markets Authority (ESMA), is expected to commence in June 2025.
