LSEG Challenges FCA's UK Stock Tape Plan as Lit Trading Lags Europe 33.5% to 46%
Updated
Updated · Reuters · Jun 9
LSEG Challenges FCA's UK Stock Tape Plan as Lit Trading Lags Europe 33.5% to 46%
1 articles · Updated · Reuters · Jun 9
Summary
July is the deadline for the FCA to finalize a consolidated UK equities tape, and LSEG says it may appeal to the government if the regulator keeps its current design.
Julia Hoggett argued a tape limited to post-trade data would be safer, warning that adding pre-trade quotes could damage market integrity and further weaken visible trading on the London Stock Exchange.
33.5% of UK equity trades ran through lit exchanges on June 5, versus 46% across the rest of Europe, data LSEG cites to argue the market is already losing transparent on-exchange activity.
Banks and trade groups are pushing the opposite way, saying only a full pre- and post-trade tape would give investors a complete view of prices and trades while lowering information costs.
The dispute goes beyond transparency rules: the FCA says the tape could make UK markets more attractive for trading and listings, while critics say LSEG is defending revenue from selling market data.