By Huw Jones
LONDON (Reuters) – Britain’s financial watchdog said on Wednesday it would start work this year on price feeds for investors to find the best deals across securities trading platforms, playing catch-up with the United States and the European Union.
As global competition to attract listings becomes tougher, and London competes with European Union centres like Amsterdam in share trading since Brexit, regulators face pressure to speed up financial reforms.
The Financial Conduct Authority said on Wednesday it would “further increase” its focus on facilitating London’s global competitiveness by implementing many of the government’s proposed “Edinburgh Reforms” to capital markets over the coming year.
“As part of the Edinburgh Reforms, the FCA will consult this year on consolidated tapes, which could improve the overall cost, quality and accessibility of wholesale data,” the watchdog said in its business plan.
Such reforms “will help ensure that the UK maintains its position as a preeminent financial centre”.
The tape would combine prices from competing trading platforms and exchanges to give investors a single feed, a feature of Wall Street stocks for decades.
The EU has already proposed a draft law to set up tapes for stock, bond, derivatives and exchange trade fund price feeds, but is facing lobbying from stock exchanges who want restrict how much of their valuable market data they will have to feed into the tapes.
The FCA announced last month it was investigating competition in UK financial data, whose findings will shape how consolidated tapes are constructed.
The FCA said last week that UK listings rules were facing a shake-up, as the City worries about listings shifting to New York.
There will also be proposals for changes to prospectus rules, for a new public offer regime, and to amend securitisation and shortselling rules, the FCA said.
The watchdog’s payroll has risen from 3,800 at the start of 2022 to nearly 4,500 by the end of last month with more hires to come. It is taking on new responsibilities, such as crypto markets, speeding up authorisations, and stepping up enforcement against scams.
(Reporting by Huw Jones; Reporting by Christina Fincher)
