UK Should Accelerate Creation of Equities Consolidated Tape

A cross-industry group made of up the Investment Association (IA), the Association for Financial Markets in Europe (AFME), the Alternative Investment Management Association (AIMA) and UK Finance commented:

“The establishment of a UK consolidated tape for equities and Exchange Traded Funds (ETFs) would be a major step in enhancing the competitiveness, transparency and resilience of UK capital markets. We strongly support the FCA’s ongoing work to develop the tape and its goal of strengthening the UK’s position in global wholesale markets.

“The ‘sell-side’ and ‘buy-side’ are aligned in their views regarding the scope and features of the tape for equities and ETFs. Namely, we urge the regulator to require the inclusion of both pre-trade and post-trade data from launch. Including real-time pre-trade data will be crucial for the tape’s commercial viability and long-term success – it would, for example, attract the widest user base and promote retail market participation. In particular, we believe the tape should include, from the outset, five layers of best bids and offers and venue attribution. This would offer market participants and regulators a complete view of market liquidity. Ultimately, it has the potential to boost trade in UK markets.

“We understand that the FCA is due to provide an update on its work by the end of this year. We would welcome an acceleration in the timeline to create a UK consolidated tape for equities and ETFs and look forward to working with the FCA on the design and the development of a tape that is comprehensive, meaningful and delivers optimal outcomes.”