(Bloomberg) -- The European Union took a significant step Tuesday toward unifying its financial markets through consolidating data on trading activity across the bloc.

The European Parliament backed rules to create centralized data feeds for various assets including stocks, exchange-traded funds and bonds from a wide range of trading platforms. The move is part of an effort to reduce the fragmentation that many argue has hindered the ability of the region’s capital markets to compete with global rivals.

The new law will allow investors to see prices and trading volumes across the bloc, including pre-trade data, bids and offers and post-trade data. Information streamed from all trading venues will be included in the so-called consolidated tapes with the aim to publish it as close as possible to real time.

EU member states must still formally approve the new rules before they can come into force, which is likely to happen quickly. 

A consolidated tape has been key to Europe’s efforts to increase global competitiveness of its capital markets. The bloc aims to streamline the operations of various regulatory regimes and about 500 operators that make both agreement and execution a challenge as it works to create a capital markets union. Currently, only a few big players have a comprehensive overview of the market.

Why Europe Is Overhauling Stock and Bond Trading Data: QuickTake

EU lawmakers and member states in June reached a provisional deal which is part of a broader push to review regulations like the Markets in Financial Instruments Directive, or MiFID II, to reinvigorate European finance and create a capital markets union that breaks down barriers between the financial markets of its members.

The European Security and Markets Authority will have nine months to organize a selection procedure of candidates for consolidated tape providers that will collect market data. It will take another year before a provider is chosen.

By June 2026, ESMA will assess whether the consolidated tape has delivered on its aim to decrease information asymmetries between market participants and to make Europe a more attractive destination to invest.

Bloomberg LP, the parent of Bloomberg News, competes with firms to aggregate and distribute market and trading data throughout Europe. It’s signed a joint venture agreement with MarketAxess and Tradeweb with the intention of participating in the public procurement procedure to become the EU’s fixed income consolidated tape provider.

--With assistance from Sam Potter.

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