The Financial Conduct Authority has launched the UK’s first bond consolidated tape, giving investors and market participants a single real-time source of prices and trading activity across the bond market.
The regulator said the service, operated by ETS Connect UK, brings together data that was previously spread across multiple sources, making it easier for users to monitor market activity.
Simon Walls, executive director of markets at the FCA, said: “Good markets run on good information. Today’s launch of a consolidated tape gives investors a clear, reliable and comprehensive view of UK bond trading for the first time.”
He added: “The UK is a global leader in fixed income issuance and trading, and this is another important delivery in enhancing the competitiveness of the UK as a leading centre of finance.”
The regulator said it was working to deliver a consolidated tape for equities, having chosen to start with bonds following consultations with market participants.
The FCA said recent changes to bond market transparency rules had increased the proportion of corporate bond trades reported in real time from less than 5 per cent to more than 75 per cent, while real-time reporting of government bond trades rose from around 30 per cent to 80 per cent.
Hugo Gordon, head of capital markets at the Investment Association, said: “The Investment Association welcomes the launch of the bond consolidated tape, a significant moment in the development of UK capital markets.
“This tape will enhance transparency and liquidity, and increase the ability of a wide range of bond investors to access the data they need to inform their investment decisions.”
Victoria Webster, managing director of fixed income at the Association for Financial Markets in Europe, said: “We welcome the UK bond consolidated tape as a major step for market transparency and access.
“It can improve price discovery, support liquidity and strengthen efficiency. With high-quality, usable data, it could become a cornerstone of a more transparent, efficient and globally competitive bond market.”
hereward.mills@ft.com
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