UK Bond Consolidated Tape Provider

Description

A consolidated tape (CT) collates market data, such as prices and volumes, associated with trades in a financial market. It aims to give a comprehensive picture of transactions in a specific asset class, bringing together details of trades executed on trading venues as well as those arranged over-the-counter. <br/>The role of a CT provider (CTP) is to collect the market data from relevant trading venues and approved publication arrangements (APAs) and then disseminate the CT in a standardised electronic data feed to market participants. <br/>By providing a single, authoritative, complete and affordable source of market data, the CT should reduce trading costs, increase liquidity and allow investors to better assess their brokers’ execution quality. <br/>As per the framework for a UK consolidated tape laid out in CP23/33, the FCA is appointing a CTP to aggregate and disseminate details of executed bond trades in the UK.<br/>The FCA will operate the procurement process using its e-sourcing system Atamis, which can be accessed free of charge via the following web link: <br/>https://atamis-fca.my.site.com/s/Welcome<br/>The steps of the tender process are set out below. We intend to publish tender documents by 31 January 2025 laying out full details of the bidding process. The FCA will undertake the contract award process under the Concession Contracts Regulations 2016. Draft tender documents will be made available on Atamis by 31 January 2025. <br/>Prospective bidders will then be invited to submit questions about the tender documents, the award process and the resulting contract. The FCA will publish Q&A that are relevant to at least some other prospective bidders and final tender documents will be published reflecting any changes following from the Q&A exercise. <br/>Applicants will then be invited to submit initial bids for stage 1 of the tender process. Stage 1 will require applicants to submit standard company information and information requested in the tender documents to ascertain (i) if they are likely to have the required level of technical capability and appropriate organisational arrangements to apply for authorisation successfully, (ii) if they were to win the tender, whether their arrangements enable them to provide the CT service to the standards set out in the relevant regulation and in the tender documents. The FCA will provide feedback to applicants. Applicants will then be invited to submit final bids for stage 1 of the tender process. <br/>Applicants that are assessed to have submitted complete applications and evaluated to meet the standards assessed in stage 1 will qualify to participate in stage 2 of the award process. <br/>Stage 2 will be a multi-round descending price auction. This will determine a winner to progress to the authorisation stage and the weighted average price cap for the user licences the CTP will be required to provide. The award outcome will be notified to tenderers and will be made public shortly after that. <br/>The winning bidder will need to move through the FCA authorisation process and sign a contract with the FCA to provide the CT service. <br/>We previously sought expressions of interest from firms considering participating in the tender process for appointing the bond CTP contract. If your firm would like to participate in the tender and has not already engaged with the FCA, please email fcaprocurement@fca.org.uk to let us know of your interest. Any responses we receive will be treated as an expression of interest only and not as a firm commitment to bid during the tender. Those who express an interest will, if they decide to bid, need to register in Atamis to access the tender documents once published. Firms do not need to have previously expressed an interest to be able to submit a bid. For the avoidance of doubt, any communication between applicants and the FCA after the publication of the draft tender documents will be conducted exclusively via Atamis. Lot 1: The FCA is inviting applications from interested parties to tender for a contract for a single provider to offer the UK bond consolidated tape (CT). The successful applicant will, once authorised by the FCA, aggregate post-trade data for bond transactions on UK venues and reported via APAs and distribute this as a real-time continuous data feed and as a corrected historical account of trades since the CT’s inception to a variety of users. The contract for providing the UK bond CT will be awarded to the successful applicant from this tender process, once they have been authorised, for a fixed five-year term, commencing from a date to be determined by the FCA. The FCA may also identify a reserved concessionaire who may be awarded the contract if the successful applicant has failed to be authorised. <br/><br/>The FCA Handbook requirements applying to a CTP are set out in Chapter 9 of the Market Conduct (MAR) Sourcebook and Chapter 15A of the Senior Management Arrangements, Systems and Controls (SYSC) Sourcebook. The policy documents related to the development of those rules were Consultation Paper 23/14, Consultation Paper 23/33 and Handbook Notice 117. <br/><br/>Based on our cost-benefit analysis estimates, we estimate that the cost of establishing and running a CTP may be approximately £29,500,000 (excluding VAT) over the 5-year contract, reflected in the estimated total value below. The actual revenues of the CTP will vary based on market demand for the CT.