ESMA Selects Etrading Software for OTC Derivatives Consolidated Tape

The European Securities and Markets Authority selected Etrading Software (Netherlands) B.V. as the consolidated tape provider for over-the-counter derivatives.

ESMA said the selection is a step toward improving transparency in OTC derivatives markets under the Markets in Financial Instruments Regulation. The authority said it assessed the applicant against MiFIR criteria, including expectations for data quality, resilience, and dissemination of consolidated market data.

The next step is for ESMA to invite Etrading Software to apply for authorisation. Once authorised, the provider would operate the OTC derivatives consolidated tape for five years under ESMA’s direct supervision.

For traders and brokers, the development matters because OTC derivatives data is fragmented across venues, reporting channels, and liquidity providers. A consolidated tape is intended to make market data easier to compare and monitor, which can affect price discovery, execution analysis, and the quality of market oversight.

Why it matters

More consistent OTC derivatives data could help institutional traders, brokers, and risk teams benchmark pricing and liquidity across the EU. It may also support regulators as they monitor market transparency and resilience after the MiFIR review.

What to watch next

The key milestone is authorisation. Traders should watch ESMA’s timing, the final scope of data covered by the tape, and how quickly brokers and data vendors integrate the feed into execution and analytics workflows.