Leading industry bodies have called for the creation of a UK consolidated tape for ETFs and equities.
In a joint statement, the Investment Association (IA), the Association for Financial Markets Europe (AFME), the Alternative Investment Management Association (AIMA) and UK Finance said the move would be a “major step” to enhancing the competitiveness of the UK market.
The group added sell-side and buy-side participants are “aligned in their views” regarding the scope and features of the tape and called for pre and post-trade data from launch.
“Including real-time pre-trade data will be crucial for the tape’s commercial viability and long-term success – it would, for example, attract the widest user base and promote retail market participation," the statement said.
“In particular, we believe the tape should include, from the outset, five layers of best bids and offers and venue attribution.”
It said the move would boost trade in UK markets by offering market participants and regulators a complete view of market liquidity.
Last July, the Financial Conduct Authority (FCA) outlined a proposed framework for a tape for bonds, with the idea of establishing one for equities over a longer timeline.
However, the group called for an acceleration in the timeline, adding they would be willing to work with the FCA on the design and development of the tape.
Last June, the European Council and Parliament agreed to establish a consolidated tape for equities and ETFs that publishes data “as close as possible to real-time”.
However, the agreement failed to incorporate venue attribution despite asset managers and some sell-side firms pushing for a tape that includes five layers of quotes.
The prospect of a regulated consolidated tape may not be implemented in Europe until 2025.
