On 4 December 2024, the Financial Conduct Authority (FCA) announced its next steps for establishing a consolidated tape (CT) for bonds, aimed at ensuring that data is accessible in a cost-effective way.

Background

The FCA consulted in July 2023 (in CP23/15) on proposals for a UK bond CT framework, and subsequently published CP23/33 in December 2023 which largely finalised the rules consulted on but also included consultation questions on payments from the bond consolidated tape provider (CTP) to data providers. In April 2024, the FCA confirmed that it would not require the bond CTP to make payments to data providers.

The FCA is separately considering the design of a CT for equities (i.e. shares and exchange traded funds), noting that the market for bond data is distinct from that for equities and the two need distinct assessments for 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

The process of appointing a CTP for bonds has now begun, with the publication on 3 December 2024 of a Concession Notice setting out the FCA’s next steps for running the tender process.

By 31 January 2025, the FCA plans to publish draft tender documents on its procurement portal (Atamis) and invite questions from bidders before it issues final tender documents. Those documents will include details of:

  • The award process.
  • The licences the successful bidder will need to provide.
  • How to participate in the tender and the information that firms will be expected to submit to the FCA as part of the application process.

The FCA also intends to publish a draft contract between it and the CTP. Potential bidders will need to register in Atamis to access the relevant documentation, and they will then need to follow the steps set out in the FCA’s announcement.

Following the appointment of the bond CTP, 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 take effect on 1 December 2025.