London Stock Exchange Group is opposing the UK Financial Conduct Authority's proposed consolidated equities tape, a real-time data feed combining share prices and trades from multiple venues. Julia Hoggett, chief executive of the London Stock Exchange, said she may appeal to the government if the FCA proceeds with the proposal in the form set out last year, with the dispute centering on whether the tape should include pre-trade data such as best bid and offer information. The FCA is expected to finalise its plans in July. The opposition stems from LSEG's concerns that broader public access to pre-trade information could reduce the value of proprietary data products and weaken public exchanges if rival venues are not required to contribute comparable information. The proposal forms part of regulatory efforts to increase transparency and competitiveness in UK capital markets following years of concern about London's ability to attract major listings.
LSEG Objects to Pre-Trade Data Inclusion in FCA Tape Proposal
The dispute centers on the FCA's proposed consolidated equities tape designed to increase transparency in stock trading. Regulators argue that a single view of market activity could make UK markets easier to understand, cheaper to access, and more attractive for investors and listed companies.
Julia Hoggett's objection focuses on whether the tape should include pre-trade data, such as the best bid and offer available on UK venues before a trade is executed. That data is commercially important for LSEG. The exchange group sells market data to investors and trading firms, and broader public access to pre-trade information could reduce the value of some proprietary data products.
The group argues the issue is not only commercial, but structural: including pre-trade data could weaken public exchanges if rival venues and banks are not required to contribute comparable information. LSEG argues that a tape limited to post-trade data would be more prudent and pragmatic. Post-trade data shows completed transactions without exposing the live order information that exchanges sell and that some market participants rely on for pricing and execution decisions.
UK Lit Exchange Trading Share Falls to 33.5% on June 5
The argument reflects a shift in UK equities trading. Traditional lit exchanges such as the London Stock Exchange display visible buy and sell orders. But a large share of trading has moved to alternative venues, bank internalizers, and other mechanisms where orders may not be visible in the same way before execution.
Hoggett said the UK now ranks near the bottom internationally for the proportion of trading that happens on lit exchanges. She argued that this is partly because UK rules have allowed more activity to move away from public order books than in the US or Europe.
Data from BMLL Technologies showed that on June 5, around 33.5% of UK equity trades took place on lit exchanges, compared with 46% in the rest of Europe. For LSEG, that gap supports its argument that the FCA should avoid measures that could further reduce the role of visible exchanges in price formation.
The FCA sees the problem differently. Its view is that a consolidated tape could show the full depth of UK trading across fragmented venues, giving investors a clearer picture of liquidity and making the UK market appear more active than it does through any single venue.
Banks and Trade Groups Support Fuller Tape with Pre-Trade Information
Banks and trade groups argue that a tape without enough pre-trade information would be less useful and may fail to attract commercial demand. UK Finance said a full pre- and post-trade tape would give investors a true reflection of the size of the UK market and provide a single view of share prices and trades across venues.
The Association for Financial Markets in Europe accused LSEG of putting its own business interests ahead of the broader market. LSEG declined to comment on that allegation or on the expected revenue impact of the tape.
Pre-trade data is the most sensitive part of the proposal because it shows bids, offers, and available volumes before transactions occur. Investors and brokers value that information because it helps assess execution quality, liquidity, and trading costs.
The commercial tension is clear. Exchanges want to protect data revenues and the role of lit venues. Banks and asset managers want a broader, cheaper, and more complete market data product. Regulators want to improve market quality without undermining the economics of public exchanges.
FCA Links Tape Proposal to UK Listings Competitiveness Efforts
The FCA's proposal is part of a wider effort to make UK capital markets more competitive after years of concern about London's ability to attract and retain major listings. A consolidated tape could help by showing investors that UK equities trading is deeper and more active than fragmented venue-level data suggests.
For asset managers, a useful tape could lower information costs and improve execution analysis. For brokers and banks, it could reduce reliance on exchange-controlled data products while giving clients a clearer view of available liquidity. For listed companies, the benefit would be indirect: a more transparent secondary market may support confidence in London as a listing venue.
The FCA is expected to finalise its plans in July, but LSEG's threat to escalate the matter to government raises the chance of further pressure before the final rules are set. An FCA spokesperson said the regulator is engaging closely with market users who support the introduction of a tape. "Our objective is to keep UK markets open, competitive and an attractive place to trade, invest and list," the spokesperson said.
FAQ
What is the consolidated equities tape the FCA proposed?
The FCA proposed a consolidated equities tape, a real-time data feed that would combine share prices and trades from multiple trading venues. Regulators argue that a single view of market activity could make UK markets easier to understand, cheaper to access, and more attractive for investors and listed companies.
Why does LSEG oppose including pre-trade data in the tape?
LSEG argues that broader public access to pre-trade information could reduce the value of proprietary data products the exchange group sells to investors and trading firms. The group also contends that including pre-trade data could weaken public exchanges if rival venues and banks are not required to contribute comparable information.
When will the FCA finalise its consolidated tape plans?
The FCA is expected to finalise its plans in July. Julia Hoggett said she may appeal to the government if the FCA proceeds with the proposal in the form set out last year.
