The UK is preparing to launch a single, consolidated source of share-trading data in an effort to revitalise its shrinking stock market and attract more companies to list in London.
According to new estimates from the Financial Conduct Authority (FCA), creating a unified feed of all UK equity trading activity would cost around £93 million but could deliver up to £100 million in benefits over the next decade through improved liquidity, lower capital costs, and increased investor participation.
A “Consolidated Tape” for UK Shares by 2027
The FCA published its proposal on Wednesday, outlining plans to introduce a UK equities consolidated tape by 2027.
The new system would:
- Combine real-time trading data from all UK venues
- Provide investors with the best bid/offer prices
- Include post-trade information
- Improve transparency and accessibility across fragmented markets
Similar systems already exist elsewhere:
- United States — consolidated tapes have existed since the 1970s
- European Union — preparing to launch its own version next year
The UK remains behind both regions in centralising market data.
Addressing Liquidity Concerns and Declining Listings
London has faced a prolonged drought of initial public offerings, with companies increasingly choosing to list in New York or Europe. Policymakers and financial executives have raised concerns about:
- Falling numbers of UK-listed companies
- Lower trading volumes
- A perception of weak liquidity
Recent listings from Shawbrook and Princes have offered some optimism, but concerns remain.
The FCA argues that a unified data system would:
- Make liquidity easier to assess
- Encourage institutional and retail investors to participate
- Strengthen London’s appeal as a listing destination
“UK markets offer diverse trading options… but this landscape makes it harder to assess liquidity as a whole,” said Simon Walls, interim executive director at the FCA.
Costs and Benefits
Over the next decade, the regulator estimates:
- Benefits: £50m–£154m (present value)
- Costs: £57m–£130m (creation, operations, regulation)
Overall, the FCA expects a net positive outcome.
Market participants have also expressed interest in a combined UK-EU-Swiss consolidated tape, and the FCA says its plans are compatible with EU proposals — enabling private-sector firms to integrate both regions’ data streams.
Concerns Over Market Transparency
Some critics warn that centralising data could unintentionally push more trading into dark pools — off-exchange private venues with limited transparency.
But the FCA said its analysis found such a shift unlikely, and the proposal has received strong support within the City.
Goldman Sachs executive Eleanor Beasley said the project would help correct the “misperception of low liquidity in the UK market.”
Next Steps and Legal Delays
The FCA has invited expressions of interest for a five-year contract to build and operate the equities tape.
A review is planned after two years to evaluate performance and assess whether pre-trade data access should be expanded.
Meanwhile, a separate consolidated tape for bond markets — awarded earlier in 2024 — has been delayed due to a legal challenge by an unsuccessful bidder. The FCA is seeking to overturn the suspension, arguing the challenge is “without merit.”
