The European Union’s plan to introduce its first consolidated bond tape—a centralised feed of trading data—may not materialise until 2027, following warnings from the European Securities and Markets Authority (ESMA) that the authorisation process could take longer than initially anticipated, Financial News reported.
Extended Authorisation Timeline
British fintech firm Ediphy, selected earlier this year to operate the EU bond tape, had originally aimed for a rollout in late 2026. However, the firm’s launch is now dependent on securing ESMA’s authorisation. While ESMA is required by EU law to confirm whether an application is complete within 20 working days and assess compliance within three months, the regulator has recently indicated that the process could take up to nine months, reflecting expectations of multiple rounds of review.
Ediphy has yet to submit its application, though it is expected to do so in the coming weeks. ESMA, citing confidentiality rules, declined to comment on its ongoing discussions with applicants but stressed that its expectations regarding timing were clearly communicated to market participants throughout the procurement process.
Alignment with UK Timeline in Doubt
The earlier guidance suggested that the EU tape could have been launched as early as March 2026, broadly in line with the UK’s equivalent, which the Financial Conduct Authority (FCA) has previously said would go live no later than March 30, 2026.
However, the UK timeline has also come under pressure. The FCA’s appointment of Etrading Software as the UK bond tape provider is currently subject to a legal challenge filed by Ediphy, automatically suspending the contracting process. The FCA had planned to finalise the contract by January 2026.
Industry sources have voiced concern that misaligned or inconsistent implementation between the UK and EU tapes could prompt market participants to shift business activity between jurisdictions.
Market Transparency Goals at Risk
The EU bond tape initiative is designed to improve transparency and lower costs by consolidating information on the price, size, and timing of bond trades across venues into a single data source. Regulators on both sides of the Channel have promoted the project as a key step toward deepening market efficiency and catching up with the United States, where consolidated tapes have been in place for decades.
Meanwhile, ESMA is expected to select an operator for the EU’s consolidated tape for equities and ETFs by the end of 2025. In parallel, the FCA has indicated it will consult on a similar measure in the UK.
Additional Regulatory Scrutiny
Separately, the FCA has intensified oversight of algorithmic trading. The regulator recently required two firms to provide attestations regarding their algorithmic trading controls, as part of a wider probe into the sector.
