ESMA Opens First Selection Process for OTC Derivatives Consolidated Tape Provider

The European Securities and Markets Authority (ESMA), the European Union’s financial markets regulator and supervisory authority, has announced the launch of the first selection procedure for a Consolidated Tape Provider covering over-the-counter derivatives, a move designed to strengthen transparency and efficiency across European financial markets. The initiative marks a significant step in the implementation of the EU’s post-trade transparency framework and is intended to support more integrated and data-driven market oversight.

ESMA said that entities wishing to take part in the procedure are invited to register their interest and submit requests to participate by February 11, 2026. The authority explained that the consolidated tape provider will play a central role in improving market transparency and efficiency by aggregating post-trade data from multiple data contributors, including trading venues, into a single, continuous electronic data feed.

According to ESMA, this consolidated and harmonised view of market activity will enable market participants to access accurate and timely information, thereby supporting better-informed investment decisions, more effective price discovery and further progress toward the objectives of the Savings and Investment Union. The authority noted that the consolidated tape provider will be responsible for collecting and disseminating data on over-the-counter derivatives in line with the proposals outlined in its final report on derivatives transparency.

ESMA confirmed that the contract notice and all relevant procurement documentation for the selection procedure have been published and are accessible through the EU Funding and Tenders Portal. As part of the process, the authority will first examine the requests received and assess them against the applicable exclusion and selection criteria. Candidates that meet these requirements will then be invited to submit a full application.

The authority added that any questions raised during the application period will be addressed exclusively through the EU Funding and Tenders Portal, ensuring transparency and equal access to information for all applicants. ESMA said it plans to adopt a reasoned decision identifying the successful applicant by early July 2026.

The selected entity will be appointed to operate the consolidated tape provider for over-the-counter derivatives for a five-year term. Once chosen, the provider will be invited to submit an application for authorisation with ESMA and, following authorisation, will fall under the authority’s ongoing supervision.

ESMA also noted that additional details on the selection process, including guidance for prospective applicants, are available on its dedicated webpage, as the authority advances its efforts to enhance post-trade transparency and data quality in EU derivatives markets.

By fLEXI tEAM