The Financial Conduct Authority (FCA) has launched a consultation on proposals to introduce a UK equity consolidated tape aimed at increasing capital investment and liquidity in equity markets.

Equity trading is spread across multiple trading venues in the UK, which the FCA said can make it challenging for market participants to assess overall market liquidity, causing it to be underestimated.

An equity tape would bring data together from across UK markets, looking to provide investors with a more comprehensive and clear view on the market, and improve market participation and the global competitiveness of UK equity markets.

The FCA said the equity tape was part of its strategic priority to support growth and ensure the UK remains a leading global financial centre.

Its new framework will look to improve market effectiveness by providing a clear and consistent view of trading volumes and prices across UK venues, and support UK listings by giving firms and investors a more complete picture of liquidity in UK equity markets.

Additionally, it will aim to increase participation in UK markets by ensuring simple and affordable access to market data, and strengthen international competitiveness by enabling informed comparisons of liquidity with other major financial centres.

The consultation is seeking feedback on introducing a tape that includes both post-trade data and the attributed best bid and offer prices across UK trading venues.

The FCA said the proposed design is aiming to balance delivering benefits to the market with the need to ensure the consolidated tape’s timely implementation and minimise excessive risk.

The equity tape is expected to be in operation in 2027, with the FCA to review the framework’s effectiveness after two years of operation, including whether pre-trade data levels should be varied.

“UK markets offer diverse trading options which can be great for competition, choice, and lowering trading fees,” said FCA interim executive director of markets, Simon Walls.

“But this landscape makes it harder to assess liquidity as a whole in our markets.

“The equity consolidated tape seeks to tackle this challenge head on by delivering more straightforward access to equity market data from across venues, supporting better decisions and boosting market participation.”

The consultation is open until 30 January 2026. The FCA has already established a framework for a bond tape, but this has received a legal challenge on the award of the contract for the consolidated tape provider. The regulator has filed an application with the High Court asking it to lift the suspension on the contract award.

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