Market participants have been asking for a bond consolidated tape for years; and they’re going to have to wait a little longer than planned, with both the EU and UK tapes facing delays.
In the UK, Etrading Software was granted the contract by the FCA in September.
READ MORE: Etrading Software to provide UK bond CT
However, after the FCA extended the standstill period on its decision, it became clear that rival bidder Ediphy had launched legal proceedings against the regulator challenging its decision.
While the court documents have not been made public, The DESK has confirmed that the challenge complains of a technically faulty auction process and a claim of conflict of interest for the FCA.
Questions have also been raised around the contract price point, which dropped from an estimated £29.5 million to £4 million in the final auction.
READ MORE: Clouds gather around UK transparency as consolidated tape decision delayed
Sassan Danesh, CEO of Etrading Software, has been vocal in his concerns that delaying the UK process could negatively impact the broader rollout of consolidated tapes and put operational strain on market participants.
Chris Murphy, co-founder and CEO of Ediphy, has not publicly commented on the legal challenge.
In Europe, ESMA awarded Ediphy (fairCT) the contract in July. The company’s backers include Cboe Global Markets, FactSet, Google Cloud, Norges Bank Investment Management, TP ICAP and UBS.
READ MORE: FairCT wins EU bond CT tender
Initial schedules from ESMA targeted Q2 2026 for the tape’s rollout. Recently, though, market sources have reported that the goalposts are likely to move to 2027.
ESMA declined to comment on the amended timeline.
The lack of clarity in both processes and delays is bitterly ironic for traders seeking greater market transparency.
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