FCA details CTP tender process

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The FCA has outlined its next steps in the consolidated tape provider (CTP) selection process, from initial applications to final authorisation.

Applications must be submitted no later than 31 January 2025. By this date, the FCA will have published draft tender documents and a draft contract via its procurement portal Atamis, it stated.

These documents will include details of the award process, the requisite licences to operate as the CTP and instructions on how to participate in the tender. Prospective bidders are invited to submit questions about the documents, which the FCA will respond to via Q&As and amendments to the papers.

Once initial and final bids have been submitted for the first stage of the tender process, including proof that technical requirements can be met, the FCA will decide which qualify for stage two: a multi-round descending price auction. The successful CTP will then go through the FCA’s authorisation process.

The tape will not go live before 1 December 2025, when the new bond transparency regime comes into play.

On the announcement, Neil Ryan, consultant at FINBOURNE and part of CTP hopeful Bondtape, said: “The FCA’s renewed emphasis on a phased approach is a welcome step toward ensuring a robust and more effective outcome. The selection process prioritises a system that reflects the requisite technical characteristics of fixed income markets and adapts to their unique needs. 

“The proactive elements of the new process that the FCA have outlined is more measured and better calibrated to the market’s needs – a high-quality CT at a reasonable price. The emphasis is on high-quality, accurate data is key — without this, the CT risks losing its effectiveness and the trust of market participants.”

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