Financial Services Sector Warns Against Diluted Market Data Reforms as FCA Reviews Equity Trading Framework

Financial Services Sector Warns Against Diluted Market Data Reforms as FCA Reviews Equity Trading Framework

(IN BRIEF) Financial industry organisations are calling on the UK Financial Conduct Authority to introduce a full consolidated tape that includes both pre-trade and post-trade data as part of its upcoming review of UK equity market structure. Industry participants argue that a comprehensive and high-quality system is essential for market transparency, price formation and international competitiveness. Firms are also urging regulators to maintain stability, avoid unnecessary regulation and preserve competition across trading venues in order to strengthen the UK’s position as a leading global financial centre.

(PRESS RELEASE) LONDON, 20-May-2026 — /EuropaWire/ — As the Financial Conduct Authority prepares to examine the future structure of the UK equity market, leading financial industry organisations are urging regulators to adopt a comprehensive consolidated tape framework that includes both pre-trade and post-trade data. Industry participants argue that anything less could weaken market transparency, reduce competition and damage the United Kingdom’s standing as a leading international financial centre.

The debate surrounding the design and implementation of the consolidated tape has intensified in recent months, with market participants stressing that the reform’s effectiveness will depend heavily on the breadth, quality and accessibility of the data provided. Financial firms warn that a limited or post-trade-only model would fail to provide a complete overview of market liquidity and would not meet the practical requirements of investors and trading firms operating in modern financial markets.

Several major industry bodies, including the Association for Financial Markets in Europe, the Investment Association and UK Finance, are jointly calling on policymakers to implement a consolidated tape that integrates both pre-trade and post-trade information with sufficient market depth and quality to support accurate price discovery and informed trading activity.

Industry representatives argue that pre-trade transparency remains fundamental to efficient price formation, fair competition and improved execution quality. Firms also point out that several global financial centres are already progressing toward more sophisticated and comprehensive market data solutions, increasing pressure on the UK to avoid introducing a diluted system that could place its markets at a competitive disadvantage internationally.

Financial services companies are therefore encouraging the FCA to pursue an ambitious implementation timeline, ideally targeting deployment by early 2027. They stress that the consolidated tape should reflect real-time market conditions and provide a reliable, consolidated view of liquidity across trading venues.

Beyond the consolidated tape initiative, the financial industry is also urging regulators to maintain stability within the wider market structure review process. Firms caution that frequent regulatory changes can increase operational complexity, elevate compliance costs and create uncertainty for market participants. Instead, they advocate for focused, evidence-based adjustments aimed at improving liquidity and preserving the UK’s competitiveness in global capital markets.

Industry participants additionally argue that concerns surrounding execution quality should primarily be addressed through stronger enforcement of existing rules rather than introducing additional layers of regulation that could complicate trading activity and reduce market efficiency.

The discussion also highlights the importance of maintaining a diverse and competitive trading ecosystem in the UK. Market participants warn against regulatory measures that could limit how investors access liquidity across exchanges, multilateral trading facilities and systematic internalisers. Restricting access to different trading venues, firms argue, could reduce competition, weaken investor outcomes and negatively affect the UK’s international financial standing.

Banks that use their balance sheets to facilitate client trades are also viewed as an essential component of the market ecosystem, particularly for handling large or sensitive transactions. Industry representatives warn that limiting the role of these institutions could reduce market resilience and increase trading costs for investors.

The debate comes at a time when the UK equity market has shown signs of renewed strength. The FTSE 100 has reportedly climbed approximately 23 percent since January 2025, reaching near-record levels, while IPO activity and the pipeline for new listings in 2026 have also improved.

Industry participants believe the current momentum provides a valuable opportunity to reinforce the UK’s position as a global financial hub. However, they also caution that poorly designed reforms or excessive restrictions could weaken the recovery and reduce the attractiveness of UK capital markets for companies and long-term investors.

Media contact:

AFME Contacts
Rebecca Hansford
rebecca.hansford@afme.eu
+44 (0)20 3828 2693

IA Contacts
Helen Ayres, Head of Communications: helen.ayres@theia.org
T: +44 (0)20 7269 4620

Sebastian Merrett, Communications Manager: sebastian.merrett@theia.org
T: +44 7802 449693

IA Press Office: press@theia.org
UK Finance press office
020 7416 6750
press@ukfinance.org.uk

About AFME:
The Association for Financial Markets in Europe (AFME) is the voice of the leading banks in Europe’s financial markets, providing expertise across a broad range of regulatory and capital markets issues. We represent over 150 leading global and European banks and other significant market players. Our members play a vital role in Europe’s financial ecosystem, underwriting around 90% of European corporate and sovereign debt, and 85% of European listed equity capital issuances. Importantly, AFME members are market makers, providing liquidity, which is essential for ensuring financial markets can function efficiently. We also represent law firms and other associate members which advise market participants and support AFME’s legal and regulatory initiatives. For more information please visit the AFME website: www.afme.eu

About the Investment Association (IA):
• The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £10.0 trillion of assets.
• Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
• Our purpose is to ensure investment managers are in the best possible position to:

o Build people’s resilience to financial adversity
o Help people achieve their financial aspirations
o Enable people to maintain a decent standard of living as they grow older
o Contribute to economic growth through the efficient allocation of capital.

• The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
• The UK is the second largest investment management centre in the world after the US and manages £5.1 trillion in overseas client AUM.

About UK Finance
UK Finance is a membership organisation that represents the banking and finance industry Representing 300 firms we’re a centre of trust, expertise and collaboration at the heart of services

SOURCE: AFME