UK aims for single trading feed within 18 months in bid to revitalise market

By Iain Withers

LONDON, July 31 (Reuters) - Britain's financial markets regulator said on Friday it aims to launch a single feed of UK stock market trading data within 18 months, as part of efforts to boost market activity and improve transparency.

The Financial Conduct Authority said it had refined its proposals for the so-called consolidated tape and was seeking feedback from market participants ahead of a planned launch in 2027 or early 2028.

"A consolidated tape will make it simpler and easier for investors to see the whole market picture," said Simon Walls, executive director of markets at the FCA.

The tape would combine real-time data from multiple trading venues, giving investors a clearer view of trading activity and helping address concerns about liquidity in UK markets. The European Union is planning to launch its own version in September, while the U.S. has operated one for decades.

TO TENDER FOR TAPE PROVIDER NEXT YEAR

The proposals have sparked debate across the financial industry about what data should be included.

Last month, the London Stock Exchange Group raised concerns that the planned inclusion of some pre-trade data — such as bids and offers before execution — could have unintended consequences and said it might seek government intervention.

The FCA confirmed on Friday it intends to include some pre-trade data. It also amended earlier proposals to require the tape provider to share some income with companies that contribute data.

The FCA plans to tender for a tape provider next year. In the interim, it has launched a daily trading volume data service.

An LSEG spokesperson said the company was reviewing the FCA's report and had no further comment.

LSEG is the largest customer of Reuters, which provides news for its Workspace news and data platform and ​other products.

Several financial industry trade bodies welcomed the proposals, alongside a broader FCA review of Britain's equity market structure.

"Together, these measures will make UK markets more efficient, deliver better outcomes for investors, and reinforce the UK’s position as a leading global financial centre," said Jillien Flores, chief advocacy officer at the Managed Funds Association.

(Reporting by Iain Withers. Editing by Catherine Evans and Mark Potter)