The UK’s Financial Conduct Authority (FCA) is considering the introduction of a consolidated tape to provide investors with clear and affordable trading data.
A consolidated tape aggregates information from multiple trading sources into a single data stream, enhancing transparency and accessibility by reducing costs and improving quality. The FCA’s proposal focuses initially on bonds, followed by equities, with plans to conduct a competitive tender process to select a single provider for bonds.
Earlier this year, 14 European exchanges formed a joint venture to engage in the upcoming selection process for a consolidated tape for equities in the EU.
Jim Goldie from Invesco expressed support for the UK initiative, noting that it “can only contribute to more robust capital markets via improved transaction cost analysis.” However, he cautioned that the implementation details will be crucial and emphasized the importance of including exchange-traded funds (ETFs) alongside equities in the consolidated tape. Additionally, he highlighted the need for venue attribution, which is not part of the EU plan.