FCA Unveils Consolidated Tape to Lower Trading Costs in the UK Financial Market

<p>The
<a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/">Financial Conduct Authority (FCA</a>) has <a href="https://www.fca.org.uk/news/press-releases/financial-regulator-sets-out-further-reforms-improve-markets-bolster-competitiveness" target="_blank" rel="nofollow">unveiled </a>a series of new measures aimed
at solidifying the UK's status as a global financial hub. The proposed changes
span from launching a consolidated tape (CT) for trading data to a comprehensive
overhaul of the regulatory framework.</p><p>FCA aims to
stimulate more informed investment decisions, provide a robust environment for
trading, and bolster competitiveness.</p><p>FCA Introduces
Consolidated Tape for Low-Cost Trading Data</p><p>In an
effort to enable more efficient and well-informed investment decisions, <a href="https://www.financemagnates.com/tag/fca/" target="_blank" rel="follow">the FCA</a>
intends to introduce a consolidated tape. This new measure combines multiple
sources of trading data into a single stream, significantly improving transparency
and accessibility. </p><p>What is
more, it reduces the cost and enhances the quality of trading data. Initially,
the CT will be implemented for bonds, in which the UK is a global market leader
before being introduced to <a href="https://www.financemagnates.com/terms/e/equities/">equities</a>.</p><p>The FCA
plans to conduct a competitive tender to assign a single CT provider for bonds
to implement this initiative. This plan forms a part of the Edinburgh reforms
and is set to materialize by 2024 with the collaboration of the government. </p><p>“We are
adapting our rules to make sure the UK market works well, providing certainty
for firms and so providing a good environment for investment,” Sarah Pritchard,
the Executive Director of Markets and Executive Director of International at
the FCA, commented.</p><p>“The new
consolidated tape will help reduce trading costs, increase transparency and
improve data quality.”</p><p>Moreover,
the FCA is set to consider additional modifications to bond and derivative
transparency requirements later in the year. The objective is to establish a
simpler, more effective regime that can improve the content and delivery of
trade data in the UK markets.</p><blockquote><p lang="en" dir="ltr">