Bond consolidated tape
We’re establishing a consolidated tape (CT) for bonds to collate market data. Find out more about what the CT will do and our work in designing a tender to find a CT provider.
A CT collates market data, such as prices and volumes associated with trades in a financial market. It aims to provide a comprehensive picture of transactions in a specific asset class.
It will bring together trades executed on trading venues as well as those arranged over-the-counter.
We expect a CT to strengthen UK markets by making them more transparent and liquid.
Our work so far
In July 2023, we published CP23/15, setting out proposals for a UK bond CT framework.
In December 2023, we published CP23/33 which largely finalised the rules consulted on in CP23/15 but also included consultation questions on payments from the bond CT provider (CTP) to data providers (trading venues and Approved Publication Arrangements). In April 2024, we published Handbook Notice 117 (PDF) confirming that we would not require that the bond CTP make payments to data providers.
We are also considering the design of a CT for equities (shares and exchange traded funds (ETFs)).
The market for bond data is distinct from that for equities and the two need distinct assessments of the potential role of a CTP, its characteristics, the appropriate economic model for the CT and its benefits in the relevant trade data market.
Next Steps
We are working with DotEcon Ltd to finalise the tender design to appoint a bond CTP. We will share updates on the progress of this work, including commencement of the tender, on this page. We expect to commence the tender before the end of 2024.
We would like anyone who is potentially interested in taking part in the tender process for appointing the bond CTP to contact us by 13 September 2024. This will allow us to ensure we are in contact with all relevant parties when making decisions to finalise the tender process.
Please email stephen.hanks@fca.org.uk to let us know of your potential interest.
Source: FCA
Equities consolidated tape
Read more about our work to establish an equities consolidated tape (CT), including an update on our plan to carry out an independent study to help shape its design.
A CT collates market data, such as prices and volumes associated with trades in a financial market. It aims to provide a comprehensive picture of transactions in a specific asset class, bringing together trades executed on trading venues as well as those arranged over-the-counter.
We expect a CT to strengthen UK markets by making them more transparent and liquid.
We are considering the design of a CT for equities (shares and exchange traded funds (ETFs)), alongside also establishing a CT for bonds.
The market for bond data is distinct from that for equities and the two need distinct assessments of the potential role of a CT provider (CTP), its characteristics, the appropriate economic model for the CT and its benefits in the relevant trade data market.
Next Steps
Feedback to our consultation shows that interested parties hold different views on whether, and how much, pre-trade data (information about bids and offers) should be included in an equities CT.
We said in CP23/33 that, before finalising design proposals, we would conduct an analysis of the possible impact of the inclusion of pre-trade data on the stability and resilience of UK equity markets and the outcomes for different types of users of the market. As we noted, it is important for policy proposals to have a firm evidence base in relation to the use cases for pre-trade data, the ability of a CT to support them and any potential unintended consequences for UK markets.
Read the terms of reference for the study.
As part of the work, Europe Economics will be seeking to conduct interviews with a wide range of market participants. When completed, this analysis will be an important input to our decision making on an equities consolidated tape.
We intend to provide a further update before the end of 2024.
Source: FCA
MFA’s Head of Global Government Affairs, Jillien Flores, issued the following statement in response to the Financial Conduct Authority’s appointment of consultants to analyze potential designs for a Consolidated Tape (CT) for equities in the UK:
“MFA has long supported efforts to establish a CT for various asset classes in the UK and welcomes the FCA’s work to facilitate a path forward to establish a CT for equities. Pursuing a CT for equities will enhance UK capital markets and ensure that the City remains a preeminent financial centre.”
Source: MFA
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