Author: FINBOURNE– finbourne.com

Co-authored by Neil Ryan, Regulatory Lead and Chris Brook, Co-Founder and Head of Platform Architecture at FINBOURNE Technology.

In this two-part blog, we uncover the benefits of a fit-for-purpose CT, combined with an interoperable API framework and a holistic approach to organisational data; and why together, they are key to unlocking the value of transaction data in a consolidated tape, for firms and the market as a whole.

As the process of refining the requirements for a bond Consolidated Tape (CT) draws to a close, buy-side, sell-side, and regulatory bodies are looking past the data quality challenges previously identified, to the practicalities of how a CT will deliver data.

In our last CTP whitepaper – The ABC’s of the CTP – we identified the key aspects that need to be addressed to maximise the efficiency of CT data, whilst minimising cost.

We have also worked with industry bodies, leveraging our Modern Financial Data Stack, to contribute evidence-based research ahead of the creation of a CT, including:

The Dutch Authority for the Financial Markets high-level technical principles for the corporate bond consolidated tape in the European Union – in which FINBOURNE contributed to the report, as part of our role in the AFM Innovation hub.

AFME’s MiFIR 2021 Sovereign Bond Trade Data Analysis and Risk Offset Impact Quantification report, published this month (and an earlier report in April 2022), in which they emphasise a clear need for a longer deferral period, for the publication of larger or illiquid trades.

In the following blog, we will examine how data would flow through a CT and how it could be used inside an investment firm’s operational landscape. We also look at how open APIs not only increase the accessibility of CT data, but also help it to be integrated throughout the functions in an organisation, to deliver deeper data-led insights and market opportunities.

Read more here