FCA to Mandate Full Trading Data Publication for London-Listed Shares, Boosting Market Transparency

The UK's Financial Conduct Authority (FCA) is set to implement a significant overhaul of market data transparency by requiring the public disclosure of all trading data for London-listed shares. This initiative aims to combat "drastic under-reporting of market liquidity" by bringing trades executed on off-exchange venues, such as dark pools and internalisers, into the public domain. Currently, a substantial volume of trading occurs away from public view, hindering accurate price discovery and potentially disadvantaging retail investors. The FCA's proposal seeks to create a more level playing field by providing a comprehensive view of market activity, aligning with global trends towards enhanced transparency. While lauded for its potential to improve market efficiency and investor confidence, the reforms necessitate careful implementation to manage operational costs and ensure practicality for all market participants. The FCA is also considering a consolidated tape to aggregate all trading data into a single feed, a move that could revolutionize market data accessibility.