Managed Funds Association (MFA) has submitted a letter to the UK’s Financial Conduct Authority (FCA) in supporting the implementation of a consolidated tape for fixed-income markets in response to the FCA’s consultation paper on the subject.
In its letter, MFA says it supports the development of a consolidated tape for bonds as it will “substantially benefit UK investors and markets”According to MFA, a properly calibrated tape will improve market transparency, price discovery, liquidity, and execution quality, and thus, enhance overall market competition.
MFA has further encouraged the FCA to develop a consolidated tape for equities to improve the proper functioning of markets and benefit UK markets and investors.
MFA’s letter highlights that the consolidated tape should provide fair pricing, reliable data, and flexibility in offerings so that managers need only subscribe to the data sets that they require. MFA recommends that the FCA appoint a single consolidated tape provider per asset class through a transparent, public tender process as multiple providers would raise the risk of inconsistent data for the same trade.