Subsequent to the EU’s decision to establish consolidated tapes for the bloc, the Financial Conduct Authority (FCA) is proposing that the UK follows suit. The regulatory body has published a consultation paper for establishing a framework for a UK consolidated tape. It states that the aim is to put a legislative and regulatory regime in place by 2024 to facilitate the tape’s emergence.
The consultation paper focuses on a proposed framework for a consolidated tape for bonds, which was suggested as a priority during the UK’s Wholesale Markets Review. It also includes a discussion on a consolidated tape for equities, which is second in line to be set up after the one for bonds has been established.
The FCA states that working on consolidated tapes forms part of the 2022 to 2025 strategy to “strengthen the UK’s position in the global wholesale markets”. Tapes will also ensure that “the UK continues to be regarded as one of the leading global markets of choice for issuers, intermediaries and investors”.
The FCA is calling for comments on its consultation paper to be submitted by 15 September 2023. It will also be working to identify a suitable consolidated tape provider.