The Association for Financial Markets in Europe (AFME) has today welcomed the Financial Conduct Authority’s (FCA) consultation on the framework for introducing a UK equity consolidated tape (CT).
AFME strongly supports the FCA’s proposal to establish a consolidated tape that is commercially viable, improves market transparency from the start, and stays aligned with equivalent initiatives in the EU. Including attributed pre-trade data alongside post-trade data from launch will ensure the tape offers real value to market participants and supports the UK’s competitiveness as a global financial centre. AFME believes the tape would be even more useful if it included a greater depth of venues’ pre-trade data.
To support a robust and efficient trading ecosystem, AFME emphasises the importance of a single, competitively tendered tape that offers clarity and consistency for end users. We support a straightforward and cost-effective design so that the tape remains accessible and sustainable for all users. Where appropriate, the technical approach should be aligned with the EU model to ensure cross-border efficiency.
However, AFME notes that a consolidated tape on its own will not solve the broader issues around the cost and availability of market data. More comprehensive reforms to the UK’s Reasonable Commercial Basis (RCB) framework are still needed to deliver a long-term solution for data users.
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