ESMA Selects Etrading Software for EU OTC Derivatives Consolidated Tape

The European Securities and Markets Authority has selected Etrading Software (Netherlands) B.V. as the consolidated tape provider for over-the-counter derivatives. ESMA said the decision is a step toward improving transparency in OTC derivatives markets under the Markets in Financial Instruments Regulation.

According to ESMA, Etrading Software was selected after an assessment of its application against MiFIR criteria, including expectations around data quality, resilience, and the dissemination of consolidated market data. ESMA will now invite the firm to apply for authorisation without delay.

Once authorised, the provider is expected to operate the OTC derivatives consolidated tape for five years under ESMA’s direct supervision. The tape is intended to give market participants a more complete view of trading information across a fragmented market.

For traders and brokers, the development matters because consolidated data can affect transparency, analytics, execution benchmarking, and post-trade monitoring. OTC derivatives remain harder to observe than exchange-traded markets, so implementation details will determine how useful the tape is in practice.

Why it matters

Better consolidated data can help dealers, buy-side desks, brokers, and regulators compare market activity more consistently. It may also support tighter surveillance and clearer transaction-cost analysis over time.

What to watch next

The next step is authorisation. Traders should watch the operating model, data coverage, fee structure, and launch timetable, since those details will decide how quickly the tape becomes useful for execution and risk workflows.