ICMA welcomes the FCA’s Policy Statement for improving transparency for bond and derivatives markets
6 November 2024 ICMA welcomes the FCA’s Policy Statement for Improving transparency for bond and derivatives markets, published yesterday, which sets out the UK’s post-trade transparency framework for the keenly anticipated consolidated tape. This is an important step in bolstering the UK’s infrastructure for the trading of domestic and international bond markets and in ensuring that London remains a leading centre for global capital markets.
The success of the tape will hinge largely on the calibration of post-trade deferrals and the treatment of the most sensitive transactions, which are those in less liquid securities or very large size, and where the protection of both liquidity providers and investors is essential for market integrity. ICMA recognises the data-driven approach that the FCA has taken in determining the optimal design for the transparency framework, while balancing this with a need for implementational simplicity. ICMA further appreciates the high degree of industry engagement which has helped to refine some of the regime’s more technical features.
ICMA looks forward to providing a more detailed assessment of the FCA’s proposals and – looking ahead - supporting a smooth implementation of the new transparency framework and the successful launch of a bond consolidated tape.
