We set out our final policy on the UK consolidated tape (CT) framework for bonds and response to discussion paper questions on a CT for equities. Considering the responses received to CP23/15, we are also consulting on payments to data providers and authorisation and supervisory forms for Data Reporting Service Providers.
Why we are changing
We aim to promote cheaper, higher quality and more accessible market data for its users by facilitating the creation of a consolidated tape for bonds.
Who this applies to
Our changes will apply to:
- trading venues which admit to trading or trade bonds
- approved publication arrangements (APAs) who publish trade reports for bonds
- approved reporting mechanisms (ARMs) who send transaction reports to us on behalf of investment firms
- firms interested in bidding to be a CT provider (CTP)
Our proposals will also interest data users, including:
- institutional investors
- asset managers
- retail investors
- data vendors
- market data and analytics firms
- trade associations
Trading venues and APAs should familiarise themselves with our rules to ensure they are able to comply with relevant requirements. They should assess their current arrangements to ensure that they will be able to share data with a bond CTP, once appointed.
Potential CTPs should consider our finalised rules before developing their approach to bidding for provision of the bond CT.
This consultation has now closed. We will publish feedback on responses and issue a Policy Statement once we have reviewed your comments.
We expect a bond CTP to commence operation in the second half of 2025.
We also expect to finalise changes to the transparency regime in 2024 with the changes applying in 2025 before the CTP goes live.
What we will do next
We will develop tender criteria to commence the tender itself to appoint a bond CTP in the course of 2024. As part of this process, we will speak to a full range of market participants to gather their views on relevant issues.
After we’ve considered the feedback to consultation chapters in the PS, we will aim to make the necessary amendments to our Handbook by 5 April 2024, the date on which the rules in the instrument in our PS are due to come into force.
CP23/15 was part of the UK Wholesale Markets Review (WMR) we have been conducting with the Treasury. The WMR was set up to improve the UK’s regulation of secondary markets, taking advantage of our new regulatory freedoms in financial services following the UK’s withdrawal from the European Union (EU).
As part of the WMR, there was a consultation in July 2021 and a response statement in March 2022. The Treasury committed to making legislative changes to ensure that the FCA has all the necessary tools to set the requirements to allow the creation of CTs in the UK. In addition, the Chancellor committed at the Edinburgh Reforms that the Treasury and the FCA would have a legislative and regulatory regime for a UK CT in place by 2024.