UK Targets Single Trading Feed in 18 Months to Revive Stock Market Transparency
FCA's Consolidated Tape Initiative and Industry Reactions
LONDON, July 31 (Reuters) - Britain's markets regulator the Financial Conduct Authority (FCA) said on Friday it would aim to launch a single feed of trading data for UK stock markets within 18 months, in an effort to reinvigorate activity and improve transparency.
The FCA said it had refined its proposals for the so-called "consolidated tape" and was seeking market feedback, ahead of launching in 2027 or early 2028.
Purpose and Expected Benefits of the Consolidated Tape
"A consolidated tape will make it simpler and easier for investors to see the whole market picture," said Simon Walls, executive director of markets at the FCA.
Enhancing Market Clarity and Liquidity
The aim is to combine real-time data from multiple trading venues to give investors more clarity and to counter perceptions the UK market lacks liquidity. The European Union is planning to launch its own consolidated tape in September, while the U.S. has operated one for decades.
Industry Debate and Concerns
The proposals have sparked debate within the financial industry about the scope of data to be included.
Concerns Over Pre-Trade Data Inclusion
Last month, the London Stock Exchange Group raised concerns that the planned inclusion of some pre-trade data — such as bids and offers before execution — could backfire and said it might ask the government to intervene.
FCA's Response and Adjustments
The FCA confirmed on Friday it intended to include some pre-trade data in the tape. It also tweaked earlier proposals in order to set out a requirement for the tape provider to share a portion of its income with companies that contributed data.
Next Steps and Interim Measures
The FCA plans to tender for a tape provider next year. In the interim, the regulator said it had launched daily trading volume data from today.
Market Participants and Related Entities
LSEG was not immediately available for comment.
LSEG is the largest customer of Reuters, which provides news for its Workspace news and data platform and other products.
Reporting Credits
(Reporting by Iain Withers; Editing by Emelia Sithole-Matarise and Catherine Evans)
