In an effort to boost competition and market quality, the U.K.’s Financial Conduct Authority (FCA) is proposing to introduce a consolidated tape of trading data starting with bonds.
The FCA said the proposed consolidated tape aims to improve investor decision-making by providing access to useful, low-cost trading data.
The regular said it’s starting with bonds since the U.K. is a leading global market for listing and trading bonds.
The FCA said it aims to have a regulatory framework in place for consolidated trading data by 2024, and that it will run a competitive tender process to appoint a provider for bond market data.
The regulator is also planning to consult on further reforms to bond and derivative transparency requirements later this year, “with the aim of creating a simpler and more effective regime which will enhance the content and delivery of trade data,” it said.
Alongside the consolidated tape, the FCA said it’s adopting new guidance to help firms understand when they need to register as a trading venue, and launching a new support service for foreign firms seeking to expand into the U.K. or to introduce novel business models.
“We are adapting our rules to make sure the U.K. market works well, providing certainty for firms and so providing a good environment for investment,” said Sarah Pritchard, executive director of markets and executive director of international at the FCA, in a release.
“The new consolidated tape will help reduce trading costs, increase transparency and improve data quality. Our other measures announced today aim to further support the U.K.’s thriving financial services sector.”
Commenting on the proposals, the International Capital Market Association welcomed the creation of a consolidated tape for bonds.