The introduction of a European consolidated tape for EU market data is a "necessity" says the Committee of European Securities Regulators (CESR) in a report to the European Commission which calls for wide-ranging reforms to the structure of trading under a revised MiFID rulebook.

In its technical advice to lawmakers in Brussels, CESR says that without regulatory intervention, market forces are "unlikely to deliver an adequate and affordable consolidation of transparency information on a pan-European basis".

The call, although widely expected, is a blow to exchanges wary of giving up control of a valuable source of revenue at a time when their income and market share is being squeezed by a host of new competitors.

However, Eddy Wymeersch, chair, CESR, says the creation of a consolidated tape "remains an area where it will be key to see concrete steps being taken in the very short-term as we remain convinced of its necessity".

The CESR document also calls for MiFID to be amended to develop binding technical standards on regulated markets and MTFs' organisational requirements regarding sponsored access, co-location, fee structures and tick sizes. (...)

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