The London Stock Exchange Group (LSEG), which owns the London Stock Exchange, is making a final push to counter a regulatory move aimed at enhancing the transparency of UK stock trading. LSEG operates critical financial market infrastructure, including trading and clearing services, and provides data solutions to the global financial community. Julia Hoggett, CEO of the London Stock Exchange, indicated she might appeal to the government if Britain’s Financial Conduct Authority (FCA) proceeds with its plan for a consolidated equities tape, signalling an escalation in the ongoing dispute.
The FCA’s proposal, expected to be finalised in July, envisions a real-time feed combining equity prices and trades from multiple players. The regulator believes this tape could bolster Britain’s appeal for stock market listings by clearly demonstrating the vibrancy of its trading environment. However, LSEG, which sells similar pre-trade data to investors, fears that including such information could damage the UK market, arguing that limiting the tape to post-trade data would be more prudent. Hoggett highlighted concerns that the plan risks eroding ‘lit’ venues like the LSE, where buy and sell orders are visible, noting the UK’s low proportion of ‘lit’ exchange trading compared to Europe.
Conversely, banking trade groups, including the Association for Financial Markets in Europe (AFME) and UK Finance, support a comprehensive tape that incorporates sufficient pre-trade data to be commercially viable. They contend that only a full pre- and post-trade tape will accurately reflect the true size of the UK market, lower costs, and improve information access for investors. An FCA spokesperson affirmed the regulator’s close engagement with market users, who largely support the tape’s introduction, reiterating the objective to keep UK markets open, competitive, and an attractive place to trade, invest, and list.
