FCA proposes to set up consolidated tape for clear and low-cost trading data
The UK Financial Conduct Authority (FCA) today announced a series of measures to help strengthen the UK’s position as a global and vibrant financial centre.
To help all investors make better, more timely decisions, the FCA is proposing to set up a consolidated tape (CT), so they can get clear and low-cost trading data. A CT combines multiple sources of trading data into one stream of information. This will increase transparency and access to trading data by lowering its cost and improving data quality.
The FCA is proposing a CT first for bonds, where the UK has a leading global market, followed by equities.
The regulator intends to run a competitive tender process to appoint a single CT provider for bonds.
As part of the Edinburgh reforms, the FCA is working with the government with the aim of having the regulatory framework in place by 2024. By building a more complete picture of the market, a CT will reinforce the UK’s position as a leading centre for the listing and trading of bonds.
The FCA will consult on further reforms to bond and derivative transparency requirements later this year, with the aim of creating a simpler and more effective regime which will enhance the content and delivery of trade data in UK markets alongside the CT.
To further support innovation and the development of new technologies, the FCA has issued guidance addressing queries that market participants have made to level the playing field and let firms know when they may require authorisation as a trading venue. The guidance will come into force in October 2023.
Building on its existing support for new entrants to financial services, the FCA is launching a new pre-application support service (PASS) for overseas wholesale firms and their advisers wishing to expand into the UK, firms already in the UK but planning to set up in the devolved nations and outside the south-east, and those with innovative, complex or high-risk business models.
The service, starting in July, will see more support such as pre-application meetings and the opportunity for FCA speakers to talk about the wholesale firm authorisation process at industry events, roundtables and conferences.