The
Financial Conduct Authority (FCA ) has unveiled a series of new measures aimed
at solidifying the UK’s status as a global financial hub. The proposed changes
span from launching a consolidated tape (CT) for trading data to a comprehensive
overhaul of the regulatory framework.
FCA aims to
stimulate more informed investment decisions, provide a robust environment for
trading, and bolster competitiveness.
In an
effort to enable more efficient and well-informed investment decisions, the FCA
intends to introduce a consolidated tape. This new measure combines multiple
sources of trading data into a single stream, significantly improving transparency
and accessibility.
What is
more, it reduces the cost and enhances the quality of trading data. Initially,
the CT will be implemented for bonds, in which the UK is a global market leader
before being introduced to equities .
The FCA
plans to conduct a competitive tender to assign a single CT provider for bonds
to implement this initiative. This plan forms a part of the Edinburgh reforms
and is set to materialize by 2024 with the collaboration of the government.
“We are
adapting our rules to make sure the UK market works well, providing certainty
for firms and so providing a good environment for investment,” Sarah Pritchard,
the Executive Director of Markets and Executive Director of International at
the FCA, commented.
“The new
consolidated tape will help reduce trading costs, increase transparency and
improve data quality.”
Moreover,
the FCA is set to consider additional modifications to bond and derivative
transparency requirements later in the year. The objective is to establish a
simpler, more effective regime that can improve the content and delivery of
trade data in the UK markets.
🇬🇧 Britain to set up real-time bond and stock trading record.
The Financial Conduct Authority (FCA) said it was proposing to create a ‘consolidated’ tape, which combines trading data from the London Stock Exchange and other platforms, to increase transparency and access to… pic.twitter.com/77EpuXABk6
— PiQ (@PriapusIQ) July 5, 2023
Additional Measures by FCA
In addition
to these significant measures, the FCA made further announcements to enhance
competitiveness. Among these include the issuance of guidance addressing
queries from market participants aimed at promoting innovation and new
technologies. The new guideline, which will be enforced from October 2023,
seeks to clarify when firms might need authorization as a trading venue.
“Our other
measures announced today aim to further support the UK’s thriving financial
services sector,” Pritchard added.
The FCA
also introduced the pre-application support service (PASS) to assist firms,
particularly those from overseas or planning expansion outside the South-East
and within the devolved nations. This service will offer benefits like
pre-application meetings and the opportunity to hear FCA speakers discuss the authorization
process at industry events.
Important Regulatory
Updates
According
to the FCA, the global financial sector witnessed a significant transformation
as the US dollar London Interbank Offered Rate (LIBOR) panel bid farewell. On 30
June 2023, the overnight and 12-month US dollar LIBOR settings were permanently
discontinued, while the 1, 3, and 6-month settings continued in a synthetic
form.
Meanwhile,
the regulator found itself in the final stages of implementing cryptocurrency
marketing and advertising regulations within the country. These regulations are
scheduled to come into effect on October 2023. The decision came at a time when
the number of cryptocurrency holders in the UK had more than doubled in the
past year, reflecting the growing interest and participation in the crypto
market.
In tandem
with these developments, the Joint Regulatory Oversight Committee (JROC),
co-led by the FCA and the Payment Systems Regulator (PSR), released its
proposed guidelines for the upcoming phase of open banking in the United
Kingdom.
The
Financial Conduct Authority (FCA ) has unveiled a series of new measures aimed
at solidifying the UK’s status as a global financial hub. The proposed changes
span from launching a consolidated tape (CT) for trading data to a comprehensive
overhaul of the regulatory framework.
FCA aims to
stimulate more informed investment decisions, provide a robust environment for
trading, and bolster competitiveness.
In an
effort to enable more efficient and well-informed investment decisions, the FCA
intends to introduce a consolidated tape. This new measure combines multiple
sources of trading data into a single stream, significantly improving transparency
and accessibility.
What is
more, it reduces the cost and enhances the quality of trading data. Initially,
the CT will be implemented for bonds, in which the UK is a global market leader
before being introduced to equities .
The FCA
plans to conduct a competitive tender to assign a single CT provider for bonds
to implement this initiative. This plan forms a part of the Edinburgh reforms
and is set to materialize by 2024 with the collaboration of the government.
“We are
adapting our rules to make sure the UK market works well, providing certainty
for firms and so providing a good environment for investment,” Sarah Pritchard,
the Executive Director of Markets and Executive Director of International at
the FCA, commented.
“The new
consolidated tape will help reduce trading costs, increase transparency and
improve data quality.”
Moreover,
the FCA is set to consider additional modifications to bond and derivative
transparency requirements later in the year. The objective is to establish a
simpler, more effective regime that can improve the content and delivery of
trade data in the UK markets.
🇬🇧 Britain to set up real-time bond and stock trading record.
The Financial Conduct Authority (FCA) said it was proposing to create a ‘consolidated’ tape, which combines trading data from the London Stock Exchange and other platforms, to increase transparency and access to… pic.twitter.com/77EpuXABk6
— PiQ (@PriapusIQ) July 5, 2023
Additional Measures by FCA
In addition
to these significant measures, the FCA made further announcements to enhance
competitiveness. Among these include the issuance of guidance addressing
queries from market participants aimed at promoting innovation and new
technologies. The new guideline, which will be enforced from October 2023,
seeks to clarify when firms might need authorization as a trading venue.
“Our other
measures announced today aim to further support the UK’s thriving financial
services sector,” Pritchard added.
The FCA
also introduced the pre-application support service (PASS) to assist firms,
particularly those from overseas or planning expansion outside the South-East
and within the devolved nations. This service will offer benefits like
pre-application meetings and the opportunity to hear FCA speakers discuss the authorization
process at industry events.
Important Regulatory
Updates
According
to the FCA, the global financial sector witnessed a significant transformation
as the US dollar London Interbank Offered Rate (LIBOR) panel bid farewell. On 30
June 2023, the overnight and 12-month US dollar LIBOR settings were permanently
discontinued, while the 1, 3, and 6-month settings continued in a synthetic
form.
Meanwhile,
the regulator found itself in the final stages of implementing cryptocurrency
marketing and advertising regulations within the country. These regulations are
scheduled to come into effect on October 2023. The decision came at a time when
the number of cryptocurrency holders in the UK had more than doubled in the
past year, reflecting the growing interest and participation in the crypto
market.
In tandem
with these developments, the Joint Regulatory Oversight Committee (JROC),
co-led by the FCA and the Payment Systems Regulator (PSR), released its
proposed guidelines for the upcoming phase of open banking in the United
Kingdom.
