Read more about our work to establish an equities consolidated tape (CT), including the independent study to help shape its design.
A CT collates market data, such as prices and volumes associated with trades in a financial market. It aims to provide a comprehensive picture of transactions in a specific asset class, bringing together trades executed on trading venues as well as those arranged over-the-counter (OTC). We expect a CT to strengthen UK markets by making them more transparent and liquid.
We are considering the potential design features of a CT for equities (shares and exchange traded funds (ETFs)), alongside also establishing a CT for bonds[1].
The market for bond data is distinct from that for equities and the 2 need distinct assessments of the potential role of a CT provider (CTP), its characteristics, the appropriate economic model for the CT and its benefits in the relevant trade data market.
Independent study
We said in CP23/33[2] that, before finalising design proposals, we would conduct an analysis of the possible impact of the inclusion of pre-trade data on the stability and resilience of UK equity markets and the outcomes for different types of users of the market. As we noted, it is important for policy proposals to have a firm evidence base in relation to the use cases for pre-trade data, the ability of a CT to support them and any potential unintended consequences for UK markets. We also said we would provide an update on our work on an equity CT before the end of 2024.
In August 2024 we appointed the consultancy Europe Economics (EE) to conduct an independent analysis of the issues around the inclusion of pre-trade data in an equities CT. We previously published the terms of reference[3] for their work. Today we are publishing their report alongside an update regarding our work on an equities CT.
You can read the EE report and our update below.
We are seeking expressions of interest from potential equity CTPs by 10 January 2025, and will shortly arrange to speak with market participants regarding questions laid out in our update.