According to Financial Times News, the UK’s Financial Conduct Authority plans to ask a High Court judge to lift the suspension on a crucial bond market data contract later this month. Ediphy Analytics has sued the regulator, alleging it was wrongfully excluded from bidding due to a “technical fault” in the tender software. The legal challenge automatically froze the contract awarded to rival Etrading Software under UK public procurement rules. The lawsuit threatens to delay the UK’s launch of a consolidated tape that aggregates bond pricing data, potentially leaving the country lagging behind the EU. Ediphy also claims conflict of interest concerns regarding Stephane Malrait, who resigned from Etrading Software just weeks before joining the FCA board on October 20. If the suspension isn’t lifted, lawyers believe the legal battle could take two years to resolve.
What’s really at stake here
This isn’t just some boring contract dispute between financial tech companies. We’re talking about the UK’s entire effort to make its bond markets more transparent and competitive. A consolidated tape basically creates a single, unified stream of pricing data that everyone can access. Right now, bond market data is fragmented across different venues and providers. That makes it harder for investors to see what’s really happening and drives up costs.
Here’s the thing: the EU is already moving ahead with its own consolidated tape. If the UK gets bogged down in legal battles for two years, we’re looking at a serious competitive disadvantage. Market participants want this data yesterday, not in 2026. And both companies were apparently willing to provide this service for free, which tells you how valuable being the designated provider actually is.
The conflict of interest questions
Now let’s talk about the Stephane Malrait situation because it’s messy. Ediphy claims there was a perceived conflict when someone from the winning bidder was about to join the regulator’s board. The FCA says Malrait had no role in the decision-making and the contract was awarded before he joined. But the timing is… interesting.
Malrait resigned from Etrading Software around two weeks before joining the FCA board on October 20. Ediphy says this only happened after they raised questions. Even if everything was technically above board, it creates the appearance of potential favoritism. In regulated markets, perception matters almost as much as reality. The FCA really should have seen this coming.
Broader implications for market structure
What’s fascinating here is that both companies are playing for much bigger stakes than just the UK contract. Ediphy won the EU bond consolidated tape tender in July, while Etrading Software also bid for that contract. Basically, they’re both trying to build pan-European fixed income data services.
Think about it – whoever controls the UK tape could potentially combine it with the EU system to create a comprehensive European service. That’s why both were willing to work for free. The real money comes from being the dominant data provider across multiple jurisdictions. This legal fight isn’t just about one contract – it’s about who gets to shape the future of European bond market transparency.
So where does this leave us? The FCA will likely argue that the public interest in having a consolidated tape outweighs Ediphy’s procedural complaints. But if the judge doesn’t lift the suspension, we could be waiting years for resolution. Meanwhile, the EU pushes ahead while UK markets remain fragmented. Not exactly the post-Brexit competitive advantage we were promised.
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.