Introducing fairCT
fairCT is the initiative launched by Ediphy and a group of like-minded institutions, with the objective of improving access to trade data and promote transparency within the Consolidated Tape frameworks in the UK and Europe.
Ediphy has been actively involved with the Consolidated Tape topic since 2018 and has consistently engaged with the FCA, the European Commission and ESMA, plus a variety of trade bodies and expert groups, to promote best practices, and identify existing challenges and solutions aimed at making the transparency regimes a success.
Purpose and Scope
fairCT is designed to operate within the relevant regulatory constraints in the UK and Europe.
As such, it is positioned as a utility service operating on a cost recovery basis, providing access to trade data and connectivity options within the scope defined by the regulatory bodies.
There are three asset classes in scope for separate Consolidated Tapes that will be launched over time. In Europe, these will be launched in stages: a tape for bonds first, followed by a tape for shares & ETFs, and finally a tape for derivatives. In the UK the current plan has only been finalised for bonds, with those for equities and derivatives still under consideration.
We are currently focused on the bond tape, both for the UK and Europe, whilst monitoring the landscape for the other asset classes as their respective tender processes are finalised.
The data is the core product, but to fully appreciate the value of the Consolidated Tape it’s worth linking the key features to the regulatory policy makers’ aims:
- The data must be comprehensive. This means that the CTP (Consolidated Tape Provider) must work with the trading venues and the APAs (Approved Publication Arrangements) to establish technically compliant API connections that support the delivery of all the data.
- The data must be accurate. The introduction of common data formats and, to a lesser extent, common transmission protocols, makes data standardisation a reachable goal, reducing data ambiguities and mitigating the risk of undetected errors.
- The data must be timely. Performance is particularly relevant for pre-trade transparency of equities markets but less so for bonds and derivatives markets where accuracy is the most valued data quality aspect by users. Nevertheless, bond market participants expect an accurate real-time feed of transactions coupled with a historical tape of record.
- The data must be secure. The necessary connectivity between data providers and the CTP and onward to data consumers and vendors will require layers of security that guarantee reliable authentication, authorisation, transport and storage of data and user information.
The data will be available via three main distribution channels, each with a specific set of features:
- The fairCT website - focused on real-time display data as well as daily queries and trade reports
- The fairCT API - focused on real-time non-display data as well as range-based queries and trade reports
- The fairCT database - providing the full data repository of end-of-day trade reports
Commitment
Our commitment is to create a Consolidated Tape for the bond market of the highest quality, at the lowest achievable price, for the benefit of the widest audience, and in full compliance with the regulatory demands. A truly fair CT.