NEWS UPDATE
DATA
Ediphy appeals FCA bond CTP decision
The FCA has confirmed that the challenge to its appointment of Etrading Software as the UK’ s consolidated tape provider is set to delay the implementation process.
Unsuccessful bidder for the
UK’ s fixed income tape, Ediphy( fairCT) has challenged the UK Financial Conduct Authority’ s( FCA) decision to award Etrading Software the consolidated tape provider( CTP) mandate. The FCA named trading technology provider Etrading Software the provider for the UK bond tape in early September, whilst the European Securities and Markets Authority( ESMA) selected Ediphy( fairCT) as the first CTP for bonds in the EU. In response to Ediphy’ s appeal, the FCA has reiterated that it“ undertook a fair, competitive two-stage process to ensure the provider could deliver a highquality tape and the best value for money”. Speaking to the next steps following fairCT’ s appeal, the watchdog stated that the process would now be delayed.“ This challenge means we can’ t enter into a contract with the successful bidder as quickly as planned. We will do so as soon as possible and, in the meantime, continue discussions with market participants to prepare for the tape.” Speaking in response to Ediphy’ s appeal, Sassan Danesh, chief executive, Etrading Software, has stated that“ Ediphy’ s legal challenge does not need to derail UK progress on establishing its own bond transparency infrastructure. With a bit of goodwill, a legal challenge can progress in parallel to the CT build.” He added:“ While we respect the right of bidders to pursue legal avenues, we also recognise that every day of delay hampers the UK’ s ability to improve price discovery and increase liquidity in UK bond markets […] We strongly advocate that the suspension be lifted urgently to stop the UK falling behind global peers in wholesale market data infrastructure.” A further delay to the UK’ s pursuit of a consolidated tape is likely to garner groans from an industry which has taken years of preparation for the tape as data challenges ramped up, including numerous consultations regarding both the UK and EU processes. The EU process is now underway, with ESMA having invited Ediphy( fairCT) to apply for authorisation“ without delay” in early July. Following the authorisation, fairCT is set to operate the CTP for bonds for the EU for a period of five years – under ESMA’ s direct supervision.
10 // TheTRADE // Q3 2025