On Wednesday 28 August, AIMA responded to the European Securities and Markets Authority's (ESMA) consultation paper on new technical standards relating to consolidated tape providers (CTPs) and other data reporting service providers.

The response highlights several principles for ESMA to consider when finalising the technical standards relating to CTPs and the criteria to assess CTP applicants:

• Ensure the robustness, resilience and efficiency of the CTP in receiving, consolidating and disseminating data;
• Ensure that the fees charged by the CTP to data users are reasonable with simple fee structures and licensing models;
• Ensure that the CTP governance structure includes proper representation of data users;
• Ensure that the CTP disseminates data at an optimal speed while ensuring data quality; and
• Ensure that the revenue distribution scheme of the CTP and arrangements for the suspension and resumption of redistribution is fair and workable.

ESMA will release a feedback statement on the assessment criteria for CTP selection procedure in Q4 2024 and submit the RTS to the European Commission by 29 December 2024.

If you have any questions on the EU's MiFIR/MiFID II Review, please contact Aniqah Rao.