The Fair Consolidated Tape
Designed to enhance transparency, liquidity and participation in bond markets, fairCT is a collaborative consolidated tape initiative.
Consolidated Tape Timeline
Bond market fragmentation and the resulting opacity have prompted regulatory bodies in Europe and the UK to take decisive action.
In the UK, HM Treasury and FCA set out consultations that resulted in the December 2023 FCA proposals for a CTP framework.
In January 2024 the European Parliament ratified an October 2023 preliminary agreement that envisages a single CTP for each of the three asset classes (Bonds, Equities & ETFs, and Derivatives).
UK
The pre-tender phase currently includes two consultations (CP23-15 and CP-23-32), a policy statement (CP23-33), and we are waiting for the final requirements for the tender process, predicted for Q4 2024.
The current expectation is for the UK bond tape to become operational in 2026.
EU
The pre-tender phase includes the so-called Level 1, i.e. the legislation adopted by the European Parliament in the form of a revised MiFIR (Markets in Financial Instruments Regulation) and MiFID II (Second Markets in Financial Instruments Directive), and the relative Level 2, i.e. the regulatory standards set by ESMA (European Securities and Markets Authority) to deliver the objectives set out in Level 1.
ESMA has proactively invited financial market stakeholders to a number of consultations during 2024 (MiFIR Review Consultation packages on CTPs, DRSPs, Reasonable Commercial Basis, non-equity transparency, reference data).
At present we expect the first tender process, for the post-trade bond tape, to start in Q1 or Q2 2025, with the tape becoming operational between 2026 and 2027.
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Frequently asked questions
fairCT is a joint initiative comprised of a group of institutions representing the full spectrum of financial industry stakeholders, each of whom are committed to improving access to trade data and promoting transparency within the framework of the Consolidated Tape programmes in the UK and Europe.
The Consolidated Tape is the official aggregate trade repository in UK and Europe, and will include a combination of real-time and historical trade reports. There are three asset classes currently in scope of the regulators: Bonds, Equities & ETFs, and Derivatives.
It is expected that there will be multiple contenders in the Consolidated Tape selection process, each with differing views and objectives driving the strategy and positioning of their offering. These will define the operating, governance and commercial models of each respective prospective operator's bid.
fairCT has the unambiguous objective of building a CT under a true utility model, delivering a high quality tape at the lowest possible cost. We are committed to returning any revenue in excess of the costs of building and running the tape to users via lower fees over time. It is our belief that a fair outcome for all market participants can only be achieved by making access to the data as cheap and easy as possible, truly democratising access to this essential source of market data.
The group includes well-recognised industry names such as Cboe Global Markets, Ediphy Analytics, FactSet, Google Cloud, Norges Bank Investment Management, TP ICAP and UBS, among others.
The fairCT initiative has been catalysed by Ediphy, a leading FinTech company in the Fixed Income space. Ediphy has been involved with the Consolidated Tape topic since the onset of MiFID II in 2018, engaging with the FCA, the European Commission and ESMA, trade bodies and expert groups, to promote best practices and identify existing challenges and solutions aimed at improving access to transparency data and investor confidence.
fairCT is currently intending to participate in both the UK and European tenders. Subject to it being successful in the selection and authorisation processes, fairCT is committed to building and launching the CTs as quickly as technically possible.
Please refer to the updated CT Timeline section for the latest details.
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