Consolidated tape expected to help UK bond market liquidity
Image: FCA
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Investors will get a single, real-time source of UK bond prices and trading activity for the first time, as a bond consolidated tape operated by ETS Connect UK launches, the Financial Conduct Authority has said. The UK is the first country outside North America to introduce a single source of trade data for bonds.
The introduction of the consolidated tape for UK bond trades was welcomed by financial organisations, which believe it will make the market more efficient and liquid.
“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,” said Simon Walls, executive director of markets at the FCA. “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 watchdog said it “is also working at pace to deliver a consolidated tape for equities, choosing to start with bonds following consultations with market participants”.
The watchdog said it “is also working at pace to deliver a consolidated tape for equities, choosing to start with bonds following consultations with market participants”.
ETS Connect UK was appointed for the bonds consolidated tape following a competitive two-stage tender process launched in March 2025. Unsuccessful bidder Ediphy had contested the decision, leading to the implementation of the single feed to be suspended. It dropped its legal challenge in May this year, paving the way for the launch.
Data on bond trades was previously fragmented, being spread across different sources, which made it difficult for investors and market participants to get a complete picture of market activity.
The tape covers 98% of post-trade transparency data for bonds admitted on UK venues. Exchange-traded notes and exchange-traded commodities are excluded.
The launch follows UK transparency rules that came into force last December, and which the FCA said have already increased real-time visibility of trades. The share of corporate bond trades reported in real time rose from less than 5% to over 75%, while for government bonds it went to about 80% from roughly 30%. In some smaller parts of the market, real-time reporting increased more than 50-fold, the FCA noted.
The FCA supervises ETS Connect UK throughout its five-year contract against data quality, completeness and timeliness standards.
