The UK's Financial Conduct Authority (FCA) is intensifying its efforts to revive London's share trading market by launching a daily reporting system for all trading data and planning a full consolidated tape. Starting Friday, the FCA will publish its Market Activity Reporter, providing a single stream of total trading value in UK-listed shares. This initiative aims to address the significant under-reporting of market liquidity, which has been cited as a reason for some companies to shift their listings to other exchanges, particularly in the United States.
FCA interim director of markets, Simon Walls, stated that the regulator plans to collect and publish all share-trading data from every venue, including public stock markets, dark pools, and other opaque trading venues. The intent is to show that London has more liquidity than currently reported, as much of the existing data is based only on the London Stock Exchange's central limit order book and excludes many trades. This move is a stopgap measure before the launch of a more comprehensive consolidated tape for equities.
The FCA plans to award a tender for the full consolidated tape next year, which will combine real-time data from various equity trading platforms into a single, unified feed. This effort is part of a broader strategy by the FCA to boost the appeal of the London Stock Exchange, which has seen a downturn in new stock market listings. The regulator views this as crucial for enhancing transparency and maintaining London's competitiveness as a financial hub.
