London, UK – MFA calls for the swift implementation of a consolidated tape for UK fixed income markets in a comment letter to the Financial Conduct Authority (FCA) submitted today. The letter is a response to the FCA’s December consultation paper on the framework for a consolidated tape for fixed income securities.
MFA supports the implementation of a consolidated tape for fixed income securities because it will improve market participants’ access to timely, accurate data. Market data is critical to investment managers’ strategies and improved data will benefit UK market competitiveness. MFA also encourages the UK to improve the functioning of an even larger portion of its capital markets by developing a consolidated tape for equities.
“Implementing a consolidated tape for the UK’s fixed income markets will improve transparency, bolster liquidity, and make the UK’s capital markets more competitive. Making accurate, and timely market information widely available through a consolidated tape will empower alternative asset managers to better serve their investors, including UK pensions and charities,” said Bryan Corbett, MFA President and CEO. “We also urge the FCA to swiftly implement a consolidated tape for equities to further benefit investors and secure the UK as a leading financial centre.”
MFA’s letter highlights that to be successful the consolidated tape must be reliable, reasonably priced, and offer customizable options to allow managers to subscribe only to the datasets necessary for its business. To keep data costs reasonable, MFA:
- Encourages the FCA to keep a fair pricing requirement in its proposal.
- Opposes revenue sharing between the consolidated tape provider and the data providers.
The full comment letter is available here.
About the global alternative asset management industry
The global alternative asset management industry, including hedge funds, credit funds, and crossover funds, has assets under management of $5.5 trillion (Q3 2023). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.
Managed Funds Association (MFA), based in Washington, DC, New York, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 175 member fund managers, including traditional hedge funds, credit funds, and crossover funds, that collectively manage over $3.2 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time.