A new group, named fairCT, consisting of Google Cloud, UBS, TP ICAP, Cboe Global Markets, FactSet, and Norges Bank Investment Management, co-ordinated by Ediphy, has entered the tender process to become the UK’s consolidated tape provider for fixed income.
The CTP will focus on enhancing transparency, liquidity and participation in UK fixed income markets, set to operate as an industry utility, built with an ‘at reasonable cost’ philosophy.
Read more: FCA moves to consult with industry on UK consolidated tape model as back and forth continues
“The [fairCT] initiative remains open to engaging with others,” confirmed the group, and will focus on the FCA’s priority to lower the costs of accessing trading data and market participation.
In addition, Ediphy has confirmed its intention to bid for the European tape as well.
The market has been expecting that the UK would prioritise a fixed income consolidated tape first due to the opaque nature of the asset class compared to others such as equities.
With bond trading in the UK currently fragmented and liquidity spread across numerous trading venues and various lit and dark trading protocols, the CT is set to right some key complexities.
Read more: If you build it, will they come?
Chris Murphy, chief executive of Ediphy, said: “Our approach is fundamentally different from other contenders. First, we aim to return any economic value generated by the consolidated tape provider over its costs and reasonable returns to the users of the tape. Second, we have built this initiative as a collaboration between multiple participants representing all stakeholder groups.
No other potential tape provider brings this diversity of experience nor delivers as fully on the alignment of product and customer needs, as proposed under the FCA Consumer Duty commitment.”