Aquis Exchange LON:AQX and Cboe Europe are planning to form a joint venture which will explore a bid to perform the role of the EU’s equity consolidated tape (CT) provider. The selection process for the EU equity CT is expected to begin in June 2025, with a successful applicant chosen by the end of 2025.
Aquis and Cboe between them collectively process over half of the daily European equity trades. They plan to establish and co-own a new company named SimpliCT (pronounced: simplicity), which will be based in the Netherlands and seek to leverage the expertise of its founders to develop a best-of-breed equity CT.
The need for a single real-time European consolidated tape
The European Commission has mandated the creation of a single entity to operate a real-time pre- and post-trade CT for equities for five years as part of the MiFIR Review, which came into force in April 2024. The task of selecting the equity CT has been delegated to the European Securities and Market Authority (ESMA). It is expected to begin the selection process in June 2025 and choose a successful applicant by the end of 2025.
As one of the most important market infrastructure developments the EU has introduced for many years, the CT requires a provider that has the necessary technical, operational, and commercial expertise, and is aligned to policy makers’ vision and objectives for the tape.
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SimpliCT’s aim would be 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. It would be supported by a commercial and governance framework designed to ensure fair treatment of both data contributors and consumers.
Aquis and Cboe said they share a commitment to and strong track record in developing pan-European solutions aligned to the vision of the EU’s Capital Markets Union. The goal is to enhance the competitiveness of EU equity markets and attract global capital flows by increasing the visibility of European issuers both within Europe and internationally, while making European markets simpler and cheaper to access.
What will SimpliCT look like?
Aquis and Cboe will be equal shareholders of SimpliCT. A dedicated SimpliCT management team and industry advisory committee will be appointed in due course. If SimpliCT is successful in the selection process, Aquis and Cboe will each contribute expertise, technology and capabilities to the new venture.
Natan Tiefenbrun, President for North American and European Equities at Cboe Global Markets, stated: “As a firm that has consistently championed for the introduction of a consolidated tape, we are thrilled to be launching SimpliCT in partnership with Aquis, who share our long-held belief in the significant benefits a well-operated and governed tape can bring to EU capital markets.”
Together with Cboe, Aquis said it has identified what it calls “a clear opportunity to serve the financial community as an independent and competitive operator through the formation of SimpliCT.”
The proposed joint venture could represent a potentially cost-efficient, robust business model that integrates advanced complementary, proprietary technologies; Aquis said it would also be designed to deliver fair compensation for data contribution, aligning the interests of contributors and consumers.
