FCA Hands Bond Tape Contract to Etrading Software Despite Legal Fight

The Financial Conduct Authority just signed with Etrading Software. The deal puts ETS in charge of building the UK’s first consolidated bond tape, giving investors a complete picture of bond trading across the market.

ETS rolled out a new website this week with technical specs and key dates for anyone contributing data or using the system. The site breaks down how the whole thing will work when it goes live in June 2026. The FCA said it’s backing ETS all the way through launch, plus they’re working with market players to make sure everything runs smooth. Bond traders have been asking for this kind of transparency for years, and now they’re getting it. The tape should boost price discovery and make the UK look better to international investors who want clearer market data.

Legal drama almost killed the project.

But the High Court lifted a freeze order in December 2025, letting the contract move forward even though someone’s still challenging it in court. The FCA didn’t back down from the legal pressure. They’re defending their pick of ETS pretty hard, saying the selection process was fair and thorough.

Sassan Danesh runs ETS and he’s pumped about the whole thing. “We’re setting a new standard for market clarity,” Danesh said when the contract got announced. He thinks the bond tape will change how investors see the UK market. The CEO didn’t give specifics about technical details, but he’s confident his team can deliver what the FCA wants by the June deadline.

Market watchers are keeping close tabs on this project because it’s pretty much the biggest infrastructure change in UK bond trading in decades. The tape will pull data from multiple sources and create one unified feed that shows what’s really happening with bond prices and volumes.

Things got messy fast after the initial contract announcement. Someone filed a legal challenge right away, though the FCA won’t say who or what the complaint covers. The agency had to freeze everything while lawyers sorted through the mess. That delay worried market participants who thought the whole project might get scrapped.

John Glen from the Treasury called the bond tape “a cornerstone for UK financial innovation.” His backing shows the government wants this thing to work. Glen’s comments came during a speech where he talked about keeping London competitive after Brexit. The bond tape fits into that bigger picture of making UK markets more attractive to global investors.

The next court hearing is set for March 2026, just three months before the planned launch. That timing makes everyone nervous, but both the FCA and ETS say they’re not changing their schedule. They’re betting the legal challenge won’t stop the project from going live on time.

Data providers are already lining up to work with the new system. ETS has been meeting with major bond dealers and trading platforms to hash out data-sharing agreements. These talks are crucial because the tape only works if it gets comprehensive coverage of market activity. Some providers want guarantees about how their data gets used and who can access it.

The competitive bidding process started in early 2025 with several tech companies throwing their hats in the ring. ETS beat out bigger competitors by promising faster implementation and lower costs. Their proposal included detailed technical specs and a timeline that impressed FCA evaluators. The selection committee spent months reviewing proposals before picking ETS in late 2025.

Bond market transparency has been a hot topic since Brexit changed how UK markets operate. Traders complain they can’t see the full picture when making investment decisions. The consolidated tape should fix that problem by showing all trades in one place instead of scattered across different platforms.

ETS is working around the clock to build the technical infrastructure needed for June 2026. The company hired extra developers and set up new data centers to handle the massive amount of information flowing through the system. They’re testing everything multiple times to avoid any glitches when the tape goes live.

The FCA’s commitment to this project shows how serious they are about modernizing UK financial markets. Officials have been planning this tape for over two years, consulting with industry groups and getting feedback from traders. The agency sees the bond tape as essential for keeping London competitive with other financial centers that already have similar systems.

Market participants are split on whether June 2026 is realistic given the legal uncertainty. Some think the court case could drag on and delay everything. Others believe the FCA will push ahead no matter what happens in court. The agency hasn’t announced any backup plans if the legal challenge succeeds.

ETS stock jumped 15% when the contract got announced, showing investor confidence in the company’s ability to deliver. The bond tape represents a major revenue opportunity for ETS, which has been trying to expand beyond its core trading software business. Success with the UK project could lead to similar contracts in other countries looking to improve market transparency.