FCA Pushes Forward With Equity Tape To Strengthen UK Market Competitiveness
The UK Financial Conduct Authority (FCA) has begun consulting on a proposed equity consolidated tape—a long-awaited step aimed at improving transparency and liquidity across UK equity markets. For years, equity trading in the UK has been fragmented across multiple venues, encouraging innovation and competitive pricing but creating challenges in assessing true market depth. Investors often underestimate liquidity simply because they cannot easily view the full picture of activity across all trading platforms.
A consolidated tape would aggregate post-trade data and top-level pre-trade information from all UK venues into a single, reliable view. This gives market participants a unified perspective on prices and volumes, assisting them better evaluate execution quality and liquidity conditions. According to the FCA, this enhanced transparency could assist stimulate greater participation, leading to deeper markets and a more competitive environment for both .
The proposal aligns with the FCA’s broader strategic goal to strengthen the UK’s position as a leading global financial centre. With jurisdictions such as the U.S. and EU already benefiting from consolidated data feeds, the absence of a UK equivalent has become increasingly noticeable. The regulator’s move signals a commitment to upgrading market infrastructure to meet global standards and support .
Takeaway
How A Consolidated Tape Could Improve Liquidity And Market Efficiency
The FCA’s proposed consolidated tape is designed to improve overall market effectiveness by delivering a consistent, unified view of pricing and trading activity across venues. By capturing post-trade data alongside attributed best bid and offer (BBO) prices—the initial layer of pre-trade data—the tape offers an optimal begining point without delaying implementation. The regulator believes this balance maximises market benefits while managing the operational and timing risks associated with building a more complex system from the outset.
For listed companies, the tape provides a clearer picture of how their shares trade across the market, assisting boards, investors, and advisers make more informed decisions. Firms that previously appeared less liquid may find that consolidated data reveals a healthier trading profile, potentially supporting and attracting more investor interest. This could also make UK listings more attractive by offering improved visibility into trading dynamics.
Enhanced access to affordable market data is central to the FCA’s mission. Smaller brokers, wealth managers, and institutional firms that do not subscribe to multiple venue feeds could gain equal footing with larger players. By lowering data barriers, the tape fosters a more inclusive ecosystem where better information leads to smoother trading and healthier liquidity across the board.
Takeaway
What Comes Next For Implementation And Market Impact
The FCA plans for the equity consolidated tape to become operational in 2027, giving market operators, technology providers, and data vendors time to prepare for integration. The timeline also reflects a desire to ensure robust testing and coordination across the industry. Once running for two years, the FCA will formally review the system’s effectiveness—including whether additional layers of pre-trade data should be introduced.
The regulator’s consultation follows extensive engagement with market participants, reflecting significant interest in building a tape that is both useful and pragmatic. The proposed framework emphasises speed of delivery and reduced implementation risk, positioning the tape as a foundational infrastructure upgrade that can evolve over time. The FCA’s approach acknowledges the importance of begining with a workable answer before expanding complexity.
Industry reaction so far has been constructive. Simon Walls, the FCA’s interim executive director of markets, underscored the need to simplify data, noting that the current venue landscape makes it hard for participants to evaluate market-wide conditions. The tape aims to address this by boosting transparency, supporting better investment decisions, and elevating the UK’s competitive standing against global financial centres such as the U.S. and EU.
Takeaway
