In light of the legal challenge from Ediphy regarding the UK Financial Conduct Authority’s decision to award the contract for the UK bond consolidated to Etrading Software, chief executive of ETS, Sassan Danesh, unpacks why the suspension exists, what happens if Ediphy wins, and the stakes for the UK.
The UK’s long-awaited bond consolidated tape (CT) has reached an important milestone: the Financial Conduct Authority (FCA) has awarded the contract to build and operate it to Etrading Software. However, implementation is currently suspended following a legal challenge from Ediphy, one of the unsuccessful bidders.
It is entirely proper that unsuccessful bidders have the right to test procurement decisions in court. That safeguard is an essential part of the system. The question is whether the CT itself must be delayed while the legal process unfolds. The UK’s regulatory framework suggests that this need not be the case.
Why the suspension exists
UK procurement law provides for an “automatic suspension” when a challenge is launched. This ensures that a challenger is not necessarily excluded before their arguments are considered. But this suspension is not immutable. The FCA can apply to the High Court to have it lifted, allowing the contract to proceed while the substantive case continues in parallel.
Ediphy also has the option of indicating that it is content for the suspension to be lifted, in which case the process would be straightforward and could be resolved without the need for a contested hearing on this issue.
What happens if Ediphy wins
Should the suspension be lifted and Ediphy later succeed in its main legal claim, the remedy available under procurement law would be financial compensation, not a retrospective change on the award of the contract. In other words, the appointed provider would continue to operate the CT, while Ediphy could receive damages if the court ruled in its favour.
This would provide an important degree of certainty. Market participants can connect to the CT infrastructure with confidence, knowing that their investment will not be undone. Transparency and efficiency benefits can begin to flow immediately, while the courts still have the opportunity to reach a judgment on the challenge.
The stakes for the UK
The bond CT is more than a procurement exercise. It is a critical component of the UK’s financial data infrastructure and directly supports the ambitions set out in the government’s Leeds Reforms and the FCA’s Wholesale Markets Review. These initiatives seek to strengthen the UK’s competitiveness by improving transparency, lowering costs, and enhancing resilience.
Other jurisdictions have already taken significant steps. The US operates TRACE, its well-established reporting system. The EU has recently awarded its own bond CT contract. If the UK delays, it risks lagging behind peers in a global market where efficient access to data is a key driver of competitiveness.
Finding the right balance
No one disputes that legal challenges must be taken seriously. But the national interest also requires progress on delivering core infrastructure. Lifting the suspension would provide a balanced way forward: there remains scope to hear Ediphy’s case, while the UK proceeds with building a system that is vital to its markets.
Conclusion
The UK bond CT is a project of strategic importance. It embodies the country’s ambition to deliver modern, efficient and transparent financial market infrastructure. Ensuring that it proceeds without unnecessary delay will give retail and institutional investors the clarity they need, while maintaining confidence in the procurement process.
Due process and progress are not mutually exclusive. By lifting the suspension, the UK can achieve both.