The UK consolidated tape provider race may not be over yet. The Financial Conduct Authority (FCA) has extended the standstill period in which challenges can be raised on its decision to award the contract to Etrading Software.
The extension implies that one or more of the bidders may have contested the process.
On Monday 8 September, the tender document was updated to extend the standstill period to 17 September, more than the standard eight days, following the initial notification of the win on 29 August.
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The FCA received four tenders, three of which made it to final-stage assessments. The DESK has confirmed that Ediphy (FairCT) was the bidder who did not make it to the last stage of the selection process, despite having won the CTP contract in the European Union (EU).
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The CTP bidders were unable to comment directly on the process.
The two unsuccessful tenders that were assessed in the final stage included details for contracts above £5 million, the FCA noted.
Official expectations for the pricing of the provider contract were initially £29.5 million, sources have confirmed. The value of the deal won by Etrading Software was £4 million (£4.8 million including VAT), for the full tenor of the deal, running from 5 January 2026 to 31 March 2031, with a possible extension to 31 March 2033, potentially spreading the revenue over more than seven years.
One source close to the auction process suggested that it had been “messy”.
The FCA’s decision-making process was largely driven by cost, with the initial March tender notice stating that the only criteria for an award would be weighted average price. A number of industry bodies raised concern about the approach, with the International Capital Markets Association (ICMA) responding to this aspect of the process in 2024, stating concerns that this could produce a ‘race to the bottom’.
“The bidder with the lowest price might win the race, but perhaps to the detriment of the standard and quality initially presented,” it said.
With seven days until the standstill ends, one source had just a single comment for The DESK: “Popcorn”.
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