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 (CTP).
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[1], setting out proposals for a UK bond CT framework.
In December 2023, we published CP23/33[2] which largely finalised the rules consulted on in CP23/15 but also included consultation questions on payments from the bond CTP to data providers (trading venues and Approved Publication Arrangements). In April 2024, we published Handbook Notice 117 (PDF)[3] 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[4] (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 starting the process of appointing a CTP in bonds. On 3 December 2024 we published a Concession Notice[5] on the Find a Tender service. The Concession Notice lays out our next steps for running the tender process to appoint a UK bond CTP.
By 31 January 2025, we will publish draft tender documents on Atamis[6], the FCA’s procurement portal which will contain details of:
- the award process
- the licences the successful bidder will need to provide
- how to participate in the tender and the information that we expect firms to submit to us as part of the application process
We will also publish a draft contract between the CTP and the FCA. Potential bidders will need to register in Atamis to access the relevant documentation.
The tender will proceed through the following steps:
- Prospective bidders will be invited to submit questions about the tender documents. We will then publish Q&As and updated tender documents, as appropriate.
- Bidders will be invited to submit initial and final bids for stage 1 of the tender process, demonstrating that they have the requisite technical capability to provide the CT to a sufficient standard. We will seek to ascertain from the stage 1 applications whether bidders are likely to be capable of being authorised, if appointed as the CTP.
- Bidders who successfully pass through stage 1 will qualify for stage 2, a multi-round descending price auction as specified in the tender documents. This will determine the winner that will progress to the authorisation stage.
Once the bond CTP has been appointed, the successful bidder will need to move through the FCA authorisation process and sign the contract with the FCA to provide the CT service. The CTP is not required to go live before bond transparency regime changes[7] take effect on 1 December 2025.