Two Tapes, One Objective: Supporting Market Transparency Across UK and EU

Two Tapes, One Objective: Supporting Market Transparency Across UK and EU

Over the past few years, both the UK and the EU have taken major steps toward building comprehensive bond and derivatives transparency infrastructures. These initiatives — each designed around their own regulatory mandates — share many of the same objectives: improving data quality, enhancing market integrity, and providing participants with a clearer picture of liquidity across Europe’s capital markets.

I welcome Ediphy’s recent decision not to oppose the FCA’s application to lift the suspension on the UK Bond Consolidated Tape contract. Their decision helps bring greater certainty to the UK market, and reflects a strong desire across the industry to ensure that this important infrastructure can progress without unnecessary disruption.

At the same time, Ediphy has made clear that its wider legal claim will continue. While this ongoing litigation naturally limits the scope for direct cooperation today, I remain convinced that collaboration between the UK and EU Consolidated Tapes will ultimately be essential for the end users we both serve.

Why collaboration between the two Tapes matters

Market participants view the financial system across jurisdictional boundaries. Firms active in the UK are, in most cases, the very same firms operating across the EU. They need data that works seamlessly across markets — and both Tapes have a role to play in delivering that.

There are several areas where constructive collaboration between the UK and EU Tapes can meaningfully benefit the market:

• Operational efficiency. A significant share of trading venues, investment firms, and data vendors rely on both infrastructures. Where appropriate and permitted, coordinating and aligning operational processes can reduce friction and cost for users.
• Cross-border transparency. Liquidity often spans multiple jurisdictions. Supporting an ecosystem of vendors who can create a pan-European post-trade transparency dataset — while fully respecting each regulator’s policy decisions — gives investors a more coherent and holistic view of market conditions.
• Shared commitment to high-quality data. Regardless of jurisdiction, both Tapes ultimately depend on clean, accurate, and resilient inputs. Market integrity improves when both infrastructures can exchange views on quality metrics, validation standards, and best practices.
• Reinforcing Europe-wide market effectiveness. The UK and EU frameworks are distinct, but they support a single, interconnected market ecosystem. When both Tapes operate effectively and in a coordinated spirit, they strengthen that ecosystem as a whole.

This is not about one system learning from another. Rather, it is about ensuring that two complementary transparency initiatives can collectively support the ambitions of market participants and public authorities on both sides of the Channel.

An inclusive approach

For now, collaboration is naturally constrained by the ongoing High Court process initiated by Ediphy. Once that process has concluded, I look forward to opportunities — formal or informal — for constructive engagement between the two Tape operators.

For our part, Etrading Software remains fully committed to delivering the UK Bond Tape with professionalism, transparency, and an unwavering focus on data quality. We recognise the leadership and technical work undertaken by the EU authorities and their chosen operator in pursuing their own Tape, just as we acknowledge the FCA’s sustained commitment to ensuring the UK Bond Tape is implemented to the highest standards. Our hope is that, over time, the two initiatives will reinforce each other, improving outcomes for the many firms who operate within both frameworks.

Closing reflection

The development of transparency infrastructure is not a zero-sum competition. It is an opportunity to serve the market and to strengthen trust in Europe’s capital-market architecture.

As CEO of Etrading Software, I believe that a collaborative, respectful, and stability-focused approach is the only sustainable path forward. We stand ready to play our part — calmly, constructively, and with a long-term perspective — once the legal processes allow.