Britain to set up real-time bond and stock trading record By Reuters

© Reuters. FILE PHOTO: Signage is seen for the FCA (Monetary Conduct Authority), the UK’s monetary regulatory physique, at their head places of work in London, Britain March 10, 2022. REUTERS/Toby Melville/File Picture

By Huw Jones

LONDON (Reuters) – Britain’s monetary watchdog proposed a real-time report of inventory and bond costs on Wednesday to assist traders spot the most effective offers and enhance the capital markets’ attraction.

It’s the newest in a welter of reforms, many contained in a brand new regulation permitted final week, to bolster the Metropolis of London as a world monetary centre, notably after being largely reduce off from the European Union as a consequence of Brexit.

The Monetary Conduct Authority (FCA) stated it was proposing to create a ‘consolidated’ tape, which mixes buying and selling information from the London Inventory Trade and different platforms, to extend transparency and entry to buying and selling.

The FCA goals to have the regulatory framework in place by 2024 and would run a aggressive tender for a bonds market tape first, adopted by shares.

“By constructing a extra full image of the market, a CT will reinforce the UK’s place as a number one centre for the itemizing and buying and selling of bonds,” the FCA stated in an announcement. 

Later this 12 months, the watchdog will seek the advice of on additional reforms to the transparency of bond and derivatives markets to assist supply of buying and selling information alongside a tape.

Wall Avenue has lengthy had tapes for inventory and bond markets, and the EU has simply finalised a deal on updating its securities buying and selling guidelines that features introducing tapes for shares and bonds regardless of heavy pushback from exchanges in Europe.

The FCA stated in March it discovered that competitors in monetary market information will not be working in addition to it ought to and that it may change the principles, findings that will “inform the design” of a tape.

“The brand new consolidated tape will assist cut back buying and selling prices, enhance transparency and enhance information high quality,” stated Sarah Pritchard, the FCA’s govt director for markets.

There may be additionally new steerage that may come into power in October to make clear the place the regulatory “perimeter” lies, that means when authorisation is required for an exercise, the FCA stated.