FCA Drives Reforms for Transparency in UK Securities Markets

The Financial Conduct Authority (FCA) of the United Kingdom has published a set of reforms aimed at improving transparency and access to information in the UK securities markets. These reforms include the development of a consolidated information system within 18 months, making market data more accessible.

Reform of the Consolidated Information System

A consolidated system gathers information from all market activity into a single source. The FCA estimates that this new system will enhance access to and use of data across the market. The aim is to develop this tool within an 18-month framework, facilitating a better understanding of trading volumes.

FCA's Assessment of the Markets

According to the FCA's assessment, the UK's securities markets are functioning effectively. However, the current fragmentation hampers a complete view of market activity. Therefore, the authority has introduced a market activity reporter while the consolidated system is being developed.

Consultation and Participation

The FCA has launched consultations, CP26/30 and CP26/31, open until October 16, 2026, regarding how the market structure should be shaped and which indicators should be monitored. Simon Walls, Executive Director of Markets at the FCA, highlighted the importance of these reforms as a foundation for liquid and resilient markets.

'The UK securities markets have evolved thanks to competition and innovation. A consolidated system will provide investors with a clearer view of the entire market,' said Walls.

Response from the Financial Sector

The initiative has been well received by industry specialists. According to Adam Farkas, CEO of AFME, the FCA's evidence-based and proportional approach will improve market data accessibility. Hugo Gordon from the Investment Association emphasized that the approach will increase transparency and efficiency in the UK's capital markets.

Next Steps

The FCA is considering contributions to the consultations before commencing the procurement of the future consolidated information system provider.

David Raw from UK Finance believes that these reforms will strengthen the UK's position as an attractive destination for global investors, enhancing transparency and price formation.

These initiatives are part of a broader program of capital market reforms aimed at improving transparency and trust in the UK's markets. The effective implementation of these reforms will be key to future success.