The FCA has today introduced new transparency rules for bonds and derivatives markets which it hopes will give investors more information and reduce costs for firms.

It set out a package of measures to 'reinforce' the UK’s position in the bond, derivatives and asset management sectors, whixh it set would support growth. 

Under the new proposals, asset managers of pooled investment funds will be given greater flexibility in how they pay for investment research, making it easier to buy insight and analysis across borders. 

It is part of the FCA’s work to strengthen wholesale markets, while ensuring investors have access to the right information to make decisions.  

Jon Relleen, director of supervision, policy and competition at the FCA, said: “We want UK markets to be efficient and to support economic growth. Putting more information in the hands of investors and giving investment firms greater access to research to inform their strategies will bolster UK markets. 

“We want to seize opportunities to enhance and streamline our rules and support the competitiveness of sectors in which the UK is already a recognised world leader.”  

The FCA said it aims to cement The UK’s position as the world leader in bond and derivatives markets by ensuring investors have access to better, quicker and clearer data at a fair price, which helps these markets work efficiently:  

• Greater transparency, in terms of timeliness and content of the information published to the market.  
• Lower compliance costs for trading venues and investment firms by simplifying the regime.   
• Higher quality post-trade data, which will support the creation of a consolidated tape for bonds in the UK.  

The new bond and derivatives transparency rules will not come into force until 1 December 2025. The FCA recently set out rules giving institutional investors greater flexibility in how they pay for research. The FCA is now proposing to extend this flexibility to asset managers of alternative investment funds and undertakings for collective investment in transferable securities (UCITS).