Aquis Exchange PLC (AIM:AQX) and the operator of the Chicago options exchange group, Cboe, are teaming up to try and become the EU’s main source of equity trading data.
The exchanges are forming a joint venture that will "explore" a bid to run the consolidated tape for the EU.
Consolidated tapes, which are a single source of market data such as prices and volumes across the market for selected asset classes, have been used by US markets for years.
The EU is starting a process to select an equities tape provider next summer, with a decision expected by the end of 2025.
Aquis and Cboe noted that together they process "over half of daily European equity trades", so hope to fit the bill as the provider with "the necessary technical, operational, and commercial expertise".
The two companies plan to establish and co-own a new company named SimpliCT ('simplicity'), based in the Netherlands.
Aquis has said several times in recent years that the creation of a consolidated tape in both the EU and the UK presents a "significant opportunity for future revenue".
Recently the UK's Financial Conduct Authority said it expects to open up the tender for a consolidated tape for bonds by the end of 2024.
It is also "considering the design" of a consolidated tape for equities, including both shares and exchange traded funds (ETFs), with an independent study launched to work on this.