FCA Launches Consultation on UK Equity Consolidated Tape to Boost Market Liquidity

The Financial Conduct Authority (FCA) has opened a consultation on proposals to introduce a UK equity consolidated tape, designed to increase transparency, improve liquidity, and strengthen the competitiveness of the UK’s equity markets.

Why a UK Equity Consolidated Tape Is Needed

Equity trading in the UK takes place across multiple trading venues. While this structure promotes competition, innovation, and reduces trading costs, it also makes it difficult for market participants to see a complete view of liquidity. As a result, the overall liquidity picture is often underestimated.

A consolidated tape would gather equity market data from all UK venues into a single, central source. This would provide investors with a clearer, more accurate overview of trading activity, supporting better investment decisions and increasing market participation.

How the Equity Tape Supports the FCA’s Strategic Goals

The introduction of an equity consolidated tape aligns with the FCA’s strategic priority to:

• Support sustainable growth in the UK financial markets
• Enhance transparency for investors
• Strengthen the UK’s position as a global financial centre

Key Aims of the Proposed Framework

The FCA’s proposed framework for the consolidated tape is designed to:

• Improve market effectiveness by offering a consistent view of prices and trading volumes
• Support UK listings through better visibility of liquidity
• Encourage greater participation by making market data more accessible and affordable
• Boost international competitiveness by enabling comparisons with major markets such as the US and EU

FCA Statement on the Equity Consolidated Tape

“UK markets offer diverse trading options that support competition and reduce trading fees. However, this structure makes it more difficult to assess liquidity across the market.

The proposed equity consolidated tape directly addresses this challenge by providing easier access to market data, helping investors make better decisions and driving increased market engagement.”

What the Consultation Is Seeking Feedback On

After extensive engagement with the industry, the FCA is consulting on a tape design that includes:

• Post-trade data
• Attributed best bid and offer prices (Level 1 pre-trade data)

This approach aims to deliver significant benefits while ensuring the tape can be implemented efficiently and without unnecessary risk.

Implementation Timeline and Review Plan

The FCA intends for the UK equity consolidated tape to be operational in 2027.
After two years of operation, the regulator will conduct a review to assess the framework’s effectiveness and determine whether additional levels of pre-trade data should be included.