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FCA proposes UK consolidated tape

The UK's Financial Conduct Authority is proposing the introduction of a consolidated tape in order to give investors clear and low-cost trading data.

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FCA proposes UK consolidated tape

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A consolidated tape combines multiple sources of trading data into one stream of information, boosting transparency and access by lowering cost and improving quality.

The FCA is proposing a consolidated tape first for bonds, followed by equities. A competitive tender process will be run to appoint a single provider for bonds.

Earlier this year, 14 European exchanges formed a JV to participate in the future selection process for the provision of a consolidated tape for equities in the EU.

Jim Goldie from Invesco has welcomed the UK plan, saying it "can only contribute to more robust capital markets via improved transaction cost analysis".

However, he warns that "the devil will be in the detail" and that it is important that ETFs are included alongside equities in one tape.

He also says that it is important to include venue attribution, something which the EU plan does not have.

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