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MFA Urges Swift Implementation of Consolidated Tape in UK Fixed Income Markets

Bryan Corbett: “We encourage the UK government to also pursue a consolidated tape for equities as part of their efforts to benefit investors, improve markets, and help secure the UK as a premier financial centre.”

LONDON, UK –  Managed Funds Association (MFA) submitted comments to the UK’s Financial Conduct Authority (FCA) in support of the implementation of a consolidated tape for fixed-income markets. The letter is in response to the FCA’s consultation paper on the framework for a consolidated tape for fixed income securities.

In its letter, MFA supports the development of a consolidated tape for bonds as it will substantially benefit UK investors and markets. A properly calibrated tape will improve market transparency, price discovery, liquidity, and execution quality, and thus, enhance overall market competition. MFA further encourages the FCA to develop a consolidated tape for equities to improve the proper functioning of markets and benefit UK markets and investors.

“Introducing a consolidated tape will improve transparency, promote liquidity, and encourage competition. Providing accurate, cost-effective, and timely market data will enhance the ability of alternative asset managers to deliver for their investors, including UK pensions and charities,” said Bryan Corbett, President and CEO of MFA. “We encourage the UK government to also pursue a consolidated tape for equities as part of their efforts to benefit investors, improve markets, and help secure the UK as a premier financial centre.”

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.

The full 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 £3.2 trillion (Q4 2022). 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.

About Managed Funds Association

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 170 member firms, including hedge funds, credit funds, and crossover funds that collectively manage nearly £2.44 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.

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