FCA Introduces Reforms for UK Equity Market Transparency

The Financial Conduct Authority (FCA) has announced a comprehensive package to enhance transparency and strengthen access to information in UK equity markets. This initiative includes plans for an equity consolidated tape, targeted market structure reforms, and an interim market activity reporting tool for shares. The FCA's goal is to support market users by simplifying access to comprehensive trading data, thereby improving liquidity and resilience.

Developing the Equity Consolidated Tape

The primary feature of the package is the establishment of an equity consolidated tape within 18 months. This tool will aggregate trading information across the market, making data more accessible and usable for investors. The FCA’s assessment highlights that while UK equity markets are effective, they are also complex, with fragmentation increasing the cost and difficulty of obtaining a complete trading picture. The consolidated tape aims to simplify this landscape by offering a single, comprehensive source of market data.

Complementary Reforms to Market Structure

Alongside the tape, the package includes targeted reforms to market structures. These reforms are designed to monitor market quality proactively. The FCA seeks public consultation on how best to track market indicators and implement necessary interventions. During this period, the interim market activity reporter for shares will operate, providing daily insights into overall market activity, ahead of the full tape's implementation.

Supporting Long-Term Transparency Goals

This initiative continues the FCA’s ongoing capital markets reform program, which previously launched the UK bond consolidated tape in June 2026. That project has already seen high engagement with over 1.6 million licence subscriptions. Together, these efforts highlight the FCA's commitment to improving transparency, enhancing market access, and boosting confidence in UK equity markets.

Simon Walls, Executive Director of Markets at the FCA, stated, “UK equity markets have evolved through competition, innovation and the choices made by investors and companies. These continue to be great foundations for a liquid and resilient market. A consolidated tape will make it simpler and easier for investors to see the whole market picture.”

Industry Support and Consultation

The FCA invites feedback on its consultations, CP26/30 and CP26/31, until 16 October 2026. These consultations will guide the FCA's approach to finalizing the design and implementation of the consolidated tape. Adam Farkas, CEO of AFME, praised the FCA’s proposals as practical and evidence-based, recognizing the effectiveness of UK markets. Similarly, Hugo Gordon from the Investment Association and David Raw from UK Finance expressed support for these reforms, emphasizing their potential to improve data access and transparency across UK capital markets.

Industry participants look forward to the procurement phase once consultations conclude, aiming for successful implementation of these significant market reforms.