The Financial Conduct Authority (FCA) is seeking Expressions of Interest from potential providers for a UK equity consolidated tape, aiming to enhance liquidity in the country’s diverse capital markets.
An equity tape aggregates data from various UK markets, offering investors a cohesive view of trading volumes and prices across different venues. Simon Walls, the interim executive director of markets at the FCA, stated, “While the variety in UK markets provides beneficial competition and choice, it complicates the overall assessment of liquidity.”
The objective of the equity consolidated tape is to simplify access to comprehensive equity market data, thereby supporting informed decision-making and increasing market participation. The consultation is designed to gather insights on implementing a consolidated tape incorporating both post-trade data and attributed best bid and offer prices across UK trading venues, with a target launch in 2027.
Previously, the FCA laid the groundwork for a bond tape, but this initiative has encountered a legal challenge regarding a £4.8 million contract awarded to Etrading Software. Competitor Ediphy, which has previously managed the EU fixed income tape mandate, has contested the decision, claiming a technical glitch in the auction software unfairly barred it from the bidding process. The FCA has approached the High Court to lift the suspension on the contract award.