Preparing for the Consolidated Tape Provider for bonds - ESMA clarifies some aspects

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is encouraging all market participants to prepare for the start of the activities of the Consolidated Tape Provider (CTP) for bonds. To facilitate this preparation and in response to questions from stakeholders, ESMA provides clarification on: the timing of the entry into force and application of the delegated acts related to CTP and the transparency regime; andthe possibility of ESMA granting a transition period to the selected and authorised CTP for bonds. Status of adoption of RTSESMA has no indication that the European Commission (EC) intends to introduce substantial changes to the draft technical standards (RTS) that ESMA published on 16 December 2024 and expects them to be adopted shortly. These draft RTS contain requirements for data contributors’ connection and contribution to the CTP, including those pertaining to input and output data of the CTP, the synchronisation of business clocks, and standards on bond transparency, and ESMA encourages all market participants to use these draft RTS to proceed with all preparatory steps necessary to be ready for the start of the activities of the CTP. Status of possible transition period The process for the CTP selection for bonds was launched in January 2025 and continues as planned. ESMA intends to adopt a reasoned decision on the selected applicant by early July 2025. Once the selection procedure ends, ESMA recommends...