The FCA is seeking to ‘bridge a gap in the market’ while the consolidated tape consultation takes place, a spokesperson told Global Trading
While the intended purpose is clear, showing that stocks and securities are a lot more liquid than simply accounting for primary and lit venues volume, details remain scant as to how the FCA intends to report this in a manner useable by market participants.
An FCA spokesperson said : “Our intention is to collect post trade data in relation to all over-the-counter and on-venue business conducted in the UK”.
How the FCA purports to describe addressable liquidity at systematic internalisers, dark venues and in the growing chunk of off book on exchange will remain the question in every market participant’s mind.
Read more: FCA pieces price data together 20 years after fragmenting it
Sources at the regulator say the FCA has grown concerned that systematic underreporting of UK trades is discouraging UK primary listings due to liquidity concerns. The move comes after months of concerns expressed by market participants. An Aquis study last year prompted a lot of further discussions on the matter of accessible and addressable liquidity.
Read more: Frustration builds over Europe’s hidden liquidity
