This report has been prepared by ICMA in response to a request from the European Commission’s DG-FISMA for considerations related to the establishment of a post-trade consolidated tape (CT) for the European bond markets. The report attempts to address a number of fundamental questions relating to the context, relevance, comparability, scope, design, and governance of a potential consolidate tape. In doing so, it is organised on the basis of the following key questions:
- What is the background for the push for a consolidated post-trade tape for European bond markets, and what should be the principles underlying its design?
- What are the differences to, and the potential lessons learned from the TRACE reporting model in the US?
- What is the current state of the MiFID II post-trade transparency landscape for bonds?
- What are possible options for a re-imagined European consolidated tape, and the key consideration with respect to governance, mandatory contribution, reporting design, revenue sharing, data transformation, repackaging and distribution models?
- What should be the scope of instruments reported?
- How to ensure consistent data quality and standards?
It is hoped that this report will provide a useful reference point for the ongoing discussions around the creation of a consolidated tape for European bond markets and a representative reflection of the views of market participants, in particular the eventual users of such a tape.