The regulator’s “consolidated tape” is intended to give investors and companies a clearer view of liquidity across UK equity markets and support listings
International News via Reuters:
Britain’s Financial Conduct Authority (FCA) said on Wednesday its equities trade tape detailing pre- and post-trade data will be operational by 2027, as it launched a consultation on the design and scope of the regime.
The regulator’s “consolidated tape” is intended to give investors and companies a clearer view of liquidity across UK equity markets and support listings. The FCA has proposed including post-trade data and attributed best bid and offer prices from multiple UK trading venues.
After two years of operation, the regulator will review the tape’s effectiveness and consider whether to adjust the level of pre-trade data.
Simon Walls, interim executive director of markets at the FCA, said that diverse trading options in UK markets made it harder to assess liquidity as a whole.
“The tape seeks to tackle this challenge by delivering more straightforward access to equity market data from across venues,” he said.
The U.S. has long operated tape aggregating for stock and bond prices, while the European Union plans to select a provider for its equities tape by year-end.
EuroCTP, a joint venture of European exchanges including Deutsche Boerse and Euronext, is the only confirmed bidder for ESMA’s tape.
The FCA has chosen a provider for its bond tape, but that rollout faces delays due to a legal challenge.
The proposals were welcomed by some in the industry.
Goldman Sachs’ Eleanor Beasley, head of market structure, said the tape would bring “long-needed transparency” and play a “meaningful role in attracting capital and driving future growth”.
London Stock Exchange Group has previously said there was no clear use case for a tape containing pre-trade data, as that information was already provided by a number of vendors.
A person familiar with the group’s thinking said that position had not changed.
Reporting by Yadarisa Shabong in Bengaluru and Phoebe Seers in London; Editing by Anil D’Silva and Ed Osmond
