FIX Pushes FCA to Improve Post-Trade Transparency in Bond and Derivatives Trading
The FIX Trading Community has called on the UK’s Financial Conduct Authority (FCA) to take decisive action in improving post-trade transparency as part of its Consultation Paper CP25/20. The consultation, focused on the systematic internaliser (SI) regime for bonds and derivatives and accompanied by a discussion paper on equity markets, has prompted FIX to highlight persistent shortcomings in market data. According to the association, inadequate post-trade transparency continues to obscure market depth and hinder effective liquidity assessments.
FIX Executive Director Jim Kaye stressed that the consultation represented a unique opportunity to resolve these issues.
“Post-trade data quality issues create noise that makes it hard for investors to make an accurate assessment of market depth and liquidity,”
he said. FIX’s recommendations include clearer definitions and standardized use of trade flags to distinguish between genuine price-forming trades and duplicative or non-price-forming trades. This, they argue, would eliminate distortions and strengthen investor confidence in reported data.
By sharpening post-trade data standards, FIX believes regulators can reduce uncertainty and improve market functioning. The organization insists that ensuring clean, reliable, and consistent information will not only benefit investors but also contribute to the overall stability of fixed income and derivatives markets.
Tackling Trade Duplication and Reporting Complexity
Another key concern raised in FIX’s response is the difficulty of duplicative reporting, which can artificially inflate trading volumes. Kaye pointed to the inefficiencies obligations across jurisdictions.
“Our response recommends recognising off-venue EU trade reports in the UK,”
he explained, noting that this adjustment would both streamline obligations and reduce unnecessary complexity for market participants.
The issue is not confined to the UK alone. FIX underlined that duplicative trade reporting affects broader European markets as well, creating misleading signals about liquidity and trading activity. Harmonizing recognition of trade reports across jurisdictions, FIX argues, would improve transparency and better reflect true market dynamics. Such harmonization would also alleviate operational burdens for firms navigating both UK and EU regulatory frameworks.
Market operators, trade-side, and purchase-side firms alike are said to support efforts to simplify reporting structures. The potential benefits extend beyond improved data quality, offering firms greater efficiency and cost . The call for streamlined trade recognition is thus framed as a win-win for both regulators and the financial community.
Recommendations on Market Identifiers and Waiver Rules
FIX’s submission to the FCA also includes proposals to enhance the granularity of trade data through clearer identification of trading activity. The organization recommends mandating separate market identifier codes (MICs) for mid-point versus lit trading activity. According to FIX, this change would ensure that transparency reforms—such as those involving the reference price waiver—are supported by accurate and reliable market data. Without such diverseiation, key insights into market quality risk being lost.
In addition, FIX supports a broader approach to mid-price referencing, advocating that such referencing should not be confined to a limited set of venues. Expanding the scope of eligible venues, they argue, would promote fairer price formation and enhance reference points. This aligns with the community’s broader push to modernize the way in which .
These recommendations emerged from FIX’s fixed income and equities consolidated tape working groups, which include a diverse membership of operators, purchase-side and trade-side firms, and technology vendors. The association noted that these groups are ongoing forums where interested stakeholders can engage, contribute, and assist shape the regulatory agenda in collaboration with industry peers.
Investor Takeaway
