The UK’s Financial Conduct Authority (FCA) has confirmed that it has filed an application with the High Court, requesting that the suspension on the bond consolidated tape contract award be lifted.
Etrading Software was named the UK bond consolidated tape provider (CTP) by the regulator in early September, beating out three other bidders to win the contract.
Specifically, the firm will take on a contract valued at £4.8 million including VAT to deliver the tape, estimated to begin on 5 January 2026 for a five-year period.
However, following this, Ediphy – the named CTP for the EU fixed income tape – appealed the decision to award the mandate to Etrading Software. Since, the process has been halted leading many across the market disappointed by the delay.
Read more: Ediphy appeals FCA bond CTP decision
Were the High Court to lift this suspension, the FCA would be free to sign a contract with Etrading Software (ETS), while the legal challenge continues. The watchdog is set to submit its formal defence to the legal challenge by the end of the week.
“It is in the public interest to deliver the important benefits of the tape as soon as possible. It is our position that the legal challenge, which we consider to be without merit, should not get in the way of that […] We want to provide clarity to industry that we are moving forward as quickly as possible, so market participants can prepare for the tape,” said the FCA in an official statement.
Speaking on the selection process, the watchdog iterated that it has undertaken a “fair” and “competitive” two stage process in order to select a CTP which would deliver a tape of both high quality, and best value for money.
Specifically, the FCA explained that it focused on ensuring that the provider could meet regulatory requirements and service obligations, before the price auction determined the bidder which could offer the best price to users of the tape.
The regulator confirmed that it would continue to engage data contributors and users, alongside Etrading Software.
Read more: Etrading Software wins UK bond CTP tender beating out three other bidders
Speaking to The TRADE, Sassan Danesh, chief executive of Etrading Software, said: “We welcome the FCA’s application to lift the automatic suspension. The application is a strong signal to market participants to continue their preparations for the launch of the UK tape, while the legal challenge proceeds in parallel.”