ESMA Selects Etrading Software for EU OTC Derivatives Tape

The European Securities and Markets Authority said on 6 July that it has selected Etrading Software (Netherlands) B.V. as the consolidated tape provider for over-the-counter derivatives.

ESMA said the selection is an important step in improving transparency for OTC derivatives markets under MiFIR. The regulator will invite Etrading Software to apply for authorisation without delay. Once authorised, the company will operate the OTC derivatives tape for five years under ESMA’s direct supervision.

The EU has been building consolidated tapes to address fragmented market data across asset classes. For OTC derivatives, a tape could make post-trade information easier to monitor across venues and publication arrangements, especially for products where liquidity and pricing transparency can be harder to observe than in listed markets.

Why it matters

Derivatives traders rely on post-trade data to judge liquidity, execution quality and recent pricing. A functioning OTC derivatives tape could improve market transparency and give brokers, buy-side desks and data vendors a more consistent source for trade information.

The immediate impact is limited because authorisation and implementation still need to happen. But the provider selection moves the EU tape project from policy design toward market infrastructure.

What to watch next

Watch the authorisation process, onboarding requirements and technical specifications for contributors. Traders should also monitor whether data vendors and broker platforms integrate the tape into analytics, execution review and risk workflows once the service goes live.