CT Plan Appoints DataCT as New Independent Administrator to Enhance Market Data Management

Overview of the CT Plan Selection Process

In a significant move towards optimizing the management of market data, the Operating Committee of the Consolidated Tape Plan has recently made the decision to appoint DataCT as its independent administrator. This development comes in anticipation of the new consolidated plan's launch in early 2027.

The selection of DataCT, an affiliate of DataBP, was the result of a rigorous evaluation process that took numerous factors into consideration, particularly the independence requirements stipulated in Section 6.2 of the Plan. This section emphasizes the importance of avoiding ties with any entities that deal in proprietary market data, whether directly or through subsidiaries.

Detailed Evaluation Process

To ensure a transparent and fair selection process, the CT Plan established a subcommittee that crafted a comprehensive Request for Proposal (RFP). This RFP attracted considerable interest from various contenders in the market data sector. Each bidder underwent thorough scrutiny, with evaluations based on their responses to the RFP and subsequent discussions held through both in-person and virtual meetings. This meticulous approach culminated in a recommendation by the subcommittee to the Operating Committee, which ultimately voted in favor of DataCT.

Implications for Market Data Services

With the selection of DataCT, negotiations regarding the terms and fees are set to begin, and it is anticipated that a final agreement will be finalized in early 2026. Following this, DataCT will manage the transition from the current administrators of the CTA/CQ and UTP Plans. The responsibility will also include overseeing all operational services necessary once the CT Plan goes live.

This new operational model promises to unify the existing functions of the CTA/CQ and UTP Plans into a more efficient and integrated framework, which is essential for facilitating a seamless transition. As emphasized by Jeff Kimsey, Chairman of the SIP Operating Committees, this new plan distinguishes itself from existing SIP Plans by establishing a singular framework managed by an independent administrator, reflecting an aggressive timeline set forth for the end of 2025.

Future Outlook

The CT Plan, which is designed to be a unified successor to the three existing market data equity plans, aims to streamline administrative tasks and enhance industry efficiency. This ambitious initiative was initiated following a directive from the Securities and Exchange Commission (SEC) in September 2023, mandating collaboration among U.S. equities exchanges and FINRA to create a new comprehensive national market system plan.

As the market awaits the go-live of the CT Plan, current stakeholders can track updates and access further information on relevant websites, including the official CT Plan site. The upcoming changes promise to redefine the landscape of equity market data management and set new standards for operational excellence.

Conclusion

The selection of DataCT marks a pivotal moment for the Consolidated Tape Plan and the U.S. market data landscape as a whole. With a commitment to enhancing service delivery and maintaining independence from market data providers, the CT Plan is poised to become a model for efficiency in market data administration. Stakeholders within the financial industry are encouraged to stay engaged with ongoing developments leading up to the 2027 launch.