Etrading Wins UK Bond Tape Deal Worth £4.8 Million

Etrading Software Secures Landmark UK Bond Tape Contract

The UK Financial Conduct Authority (FCA) has selected London-based Etrading Software to design and operate the countrys inaugural consolidated bond tape, awarding a £4.8 million, five-year contract set to commence on January 5, 2026. The deal, confirmed after a competitive tender process in August 2025, includes an option to extend through 2033, positioning Etrading as the central operator for post-trade bond data aggregation across UK trading venues and over-the-counter (OTC) markets.

A Step Forward for UK Fixed Income Transparency

This initiative marks a significant milestone for UK fixed income markets, long criticized for fragmented data and limited transparency compared to equities. By consolidating market activity into a single, standardized feed, the FCA aims to enhance price discovery, improve liquidity, and narrow spreads in sterling credit markets. Investors and dealers will gain access to comprehensive, real-time post-trade data, empowering more informed decision-making and potentially attracting greater participation to the UKs bond markets.

The project is a key part of the UK‘s post-Brexit financial services strategy, designed to maintain London’s competitiveness as a global financial hub. The Treasurys Wholesale Markets Review specifically recommended affordable, accessible market data as critical for sustaining growth and innovation in wholesale markets.

Why Etrading Software?

Etrading Software, established in 2005, brings a strong track record in managing large-scale, regulated financial market infrastructure—notably through its work with the Derivatives Service Bureau on global OTC derivatives identifiers. Industry experts highlight this experience as pivotal in the FCAs decision, given the technical and regulatory complexities of operating a consolidated bond tape. Competitors, including Ediphy (fairCT), TransFICC, and the BondTape consortium, were outpaced in the final stages of the tender.

Neil Ryan, CEO-designate of BondTape, offered a conciliatory note, expressing support for the projects goal of delivering a transparent, competitively priced bond tape to UK markets. Ediphy, meanwhile, will lead the parallel EU bond tape initiative following its July 2025 mandate from European regulators.

UK vs. EU: Diverging Paths for Bond Market Transparency

While both the UK and EU are rolling out consolidated bond tapes to boost market transparency, their regulatory frameworks differ significantly. The EUs model, overseen by ESMA, mandates broad data contributions from trading venues, aiming for maximum coverage. In contrast, the FCA has prioritized commercial viability and competitive pricing, seeking a balance between comprehensiveness and accessibility.

This divergence may influence how quickly each tape gains traction: the EU‘s mandatory approach could ensure wider initial adoption, while the UK’s market-driven model may foster innovation and cost efficiency. Cross-border investors, however, may need to subscribe to both feeds to maintain full visibility across European bond markets—a consideration for firms active in both jurisdictions.

Looking Ahead: Challenges and Opportunities

With the launch planned for 2026, market participants are keenly watching how the UK consolidated bond tape will be implemented. Key questions remain around the speed of trade reporting, the range of instruments covered, and the pricing structure to ensure widespread adoption. The FCA has emphasized that affordability and accessibility will be central to the tapes success, aligning with broader goals of improving market integrity and investor confidence.

For Etrading Software, the contract solidifies its reputation as a critical infrastructure provider in global capital markets. For the UK, the bond tape represents a flagship reform, signaling commitment to transparency, innovation, and competitiveness in a post-Brexit financial landscape.