20 Jan 2021
Bond Trading Data Boom Planned by EU Seeking Post-Brexit Boost

European Union regulators are pushing ahead with a central database to track euro bonds as part of efforts to strengthen the bloc’s financial markets after Brexit.

A document from the EU’s executive arm Tuesday outlined plans for a so-called consolidated tape for corporate bonds, which would help fulfill a longstanding ambition in the bloc to bring together all data on completed trades. The change would increase secondary trading in euro-denominated bonds and boost the appeal of the securities for issuers and investors, according to the document.

The move forms part of a raft of measures the EU is taking to boost its financial markets as the U.K.’s split from the union starts to fragment trading. Despite years of consultations and an established data stream in the U.S., there is currently no single source of post-trade data for EU bonds or equities.

“The fact that the Commission acknowledges that a single, reliable source of data will increase transparency and attractiveness of its markets is a very positive step,” said Niki Beattie, founder of Market Structure Partners, who published a study last year on the benefits of such an initiative.