The U.K. Financial Conduct Authority is seeking input from money managers and trading venues on the creation of a consolidated tape to help investors access clear and low-cost bond trading data.
A consolidated tape combines multiple sources of trading data into one stream of information.
The FCA intends to run a competitive tender process to appoint a single consolidated tape provider for bonds and complete a regulatory framework by 2024.
The regulator wants money managers to provide feedback on how the proposal to create a consolidated tape will help better access trading data. The consultation runs until Sept. 15. The FCA first proposed a consolidated tape in its Edinburgh Reforms in 2022.
"We are adapting our rules to make sure the U.K. market works well, providing certainty for firms and so providing a good environment for investment," Sarah Pritchard, executive director of markets and executive director of international at the FCA, said in a news release Wednesday.
In response to the announcement, Adam Farkas, CEO of the Association for Financial Markets in Europe, said in a statement: "AFME supports the development of a consolidated tape and the role it plays in improving data quality. However, we recognize that even an appropriately constructed consolidated tape will not fully address the current unacceptably high cost of market data. We trust that the FCA's extensive work on wholesale data will help address anomalies in this area, which are detrimental to financial markets and their users."
AFME supports a single independent consolidator for each asset class and for a consolidated tape to be offered at appropriate price levels for professional and non-professional investors, the statement said. The association added that the provision of information must be mandatory across all trading venues.
The FCA will then seek to create a consolidated tape for equities and later this year will consult on further reforms to bond and derivative transparency requirements.
Last week, the EU Council reached a provisional agreement with the European Parliament on changes to the EU's trading rules that will give investors better access to market data through a pan-European consolidated tape for different assets.