In an effort to bolster equity markets in the U.K., the Financial Conduct Authority (FCA) is consulting on its plans for consolidated trading data.
On Wednesday, the FCA issued a consultation paper setting out a proposed framework for introducing a consolidated tape for equity markets, under a single provider that would compile and distribute data on U.K. equity markets across various trading venues and over-the-counter (OTC) trade activity.
The proposal — which covers traditional equities, ETFs, depository receipts and certificates, along with similar instruments — seeks feedback on a tape that would provide both post-trade data and certain pre-trade data (attributed best bid and offer prices).
“This proposed design aims to balance delivering benefits to the market with the need to ensure the consolidated tape’s timely implementation and minimize excessive risk,” the paper said — adding that the FCA also aims to ensure that consolidated data is distributed at “competitive” prices and uses simple structures for licensing that data.
The regulator said its goal in launching a consolidated tape is to enhance market liquidity and transparency, with the ultimate objective of fostering growth in the U.K. markets by boosting market quality, supporting public listings and driving greater market activity.
“An equity tape brings data from across U.K. markets together, providing investors with a more comprehensive and clear view of the market. This will help boost market participation and the global competitiveness of U.K. equity markets,” the regulator said.
“U.K. markets offer diverse trading options which can be great for competition, choice, and lowering trading fees. But this landscape makes it harder to assess liquidity as a whole in our markets,” said Simon Walls, interim executive director of markets at the FCA, in a release.
“The equity consolidated tape seeks to tackle this challenge head on by delivering more straightforward access to equity market data from across venues, supporting better decisions and boosting market participation,” he added.
The consultation is open until Jan. 30, 2026.
The FCA aims to launch a consolidated equity tape in 2027, which would be reviewed after two years.
The regulator is also seeking expressions of interest from firms to fill the role of operating the consolidated tape.