To implement this initiative, the FCA intends to initiate a competitive tender process to select a single provider for the CT in the bond market. This plan is a crucial component of the Edinburgh reforms and is expected to be realized through collaboration with the government by 2024.
Sarah Pritchard, executive director of markets and executive director of international at the FCA, said:
We are adapting our rules to make sure the UK market works well, providing certainty for firms and so providing a good environment for investment.
The new consolidated tape will help reduce trading costs, increase transparency and improve data quality.
Other enhancements
In addition, the FCA plans to explore further enhancements to transparency requirements for bonds and derivatives later in the year. The goal is to establish a streamlined and more effective regulatory framework that can enhance the quality and delivery of trade data across UK markets.
Additionally, the UK markets regulator has unveiled further measures to enhance competitiveness within the financial market including guidance that addresses inquiries from market participants with the aim of fostering innovation and the adoption of new technologies. The forthcoming guideline aims to provide clarity on the circumstances in which firms may require authorization as a trading venue and it is implemented in October 2023.
Moreover, the FCA has introduced the pre-application support service (PASS) to assist firms, particularly those based outside the South-East or planning expansion in the devolved nations. This service offers advantages such as pre-application meetings and the opportunity to attend industry events where FCA representatives discuss the authorization process.
Pritchard added:
Our other measures announced today aim to further support the UK’s thriving financial services sector.
The regulator recently implemented cryptocurrency marketing and advertising regulations within the country scheduled to come into effect in October 2023.
