London Stock Exchange challenges overhaul of UK trade data

The Financial Conduct Authority is set to finalize its blueprint for a consolidated equities tape in July. This feed aims to aggregate price and trade data across multiple venues to boost the UK's attractiveness to global investors. However, the exchange argues that including pre-trade data—bids and offers currently sold privately by LSEG—would erode the stability of “lit” venues where orders remain visible to the public.

Hoggett contends that the regulator’s path favors off-exchange trading, a shift she claims has already pushed the UK to the bottom of international rankings for exchange-based activity. Data from BMLL Technologies shows only 33.5% of UK trades occurred on lit exchanges as of June 5, compared to 46% across the rest of Europe. Conversely, banking groups like the Association for Financial Markets in Europe argue that LSEG is merely protecting its own revenue streams at the expense of market-wide visibility. UK Finance maintains that a comprehensive tape is the only way to provide a true reflection of the market, insisting that anything less would fail to lower costs or improve information access for investors.