The Financial Conduct Authority (FCA) has asked the High Court to overturn a suspension that is blocking it from completing a bond consolidated tape contract.

Etrading Software was selected in September 2025 as the UK bond consolidated tape provider (CTP), with the software firm awarded a contract worth £4.8 million (including VAT), with the contract supposed to be running for five years from 5 January 2026.

However, competitor Ediphy, which has previously been awarded the EU fixed income tape mandate, appealed against the deal, with the firm claiming that a technical error in the auction software unfairly excluded it from the tender.

Consolidated tape aggregates trading data from multiple venues into a single standardised feed.

For bonds, it provides a unique and reliable view of the UK bond market, aiming to boost transparency, lowering costs and helping investors make better informed decisions.

Under UK procurement rules, Ediphy's legal challenge resulted in the automatic suspension of the contract award, halting preparations for the implementation of the UK tape in January.

The FCA argues that the legal challenge should not delay the delivery of the tape, which it considers ‘essential’ to maintaining the UK's competitiveness as a financial centre.

The FCA said in a statement: "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."

The court will now decide whether to lift the suspension.

If the request is granted, the FCA will be able to sign the contract with Etrading Software immediately and at the same time defend itself against the legal challenge.

---