UK Regulator Moves to Publish Full Trading Data for London Shares

Britain’s financial watchdog is planning a major transparency push by publishing comprehensive trading data for all London listed shares, a move aimed at restoring confidence in UK markets and countering claims that liquidity in London is weaker than it really is. The proposal comes as policymakers seek to reverse a slowdown in stock market listings and prevent companies from drifting toward overseas exchanges.

The Financial Conduct Authority has signalled that it wants to collect and release trading information from every venue where UK shares change hands. That would include traditional exchanges as well as so called dark pools, private trading venues often used by large institutional investors to execute sizeable orders without causing sharp price swings. Regulators believe a large portion of trading activity currently goes unseen by the wider market, distorting perceptions of how active and attractive London really is.

According to senior officials, much of the data used today focuses on transactions recorded on the London Stock Exchange’s main order book, leaving out significant volumes executed elsewhere. The FCA argues that this partial picture has fuelled a narrative that London suffers from poor liquidity, encouraging some companies to consider listings in the United States where markets are perceived as deeper and more dynamic.

By publishing a fuller dataset, the regulator hopes to show that UK markets are more liquid than widely assumed. Officials acknowledge the plan carries some operational and legal risk, but say the cost of inaction would be greater if misconceptions continue to damage London’s reputation as a global financial centre. The data release is intended as a temporary solution ahead of a longer term reform already in development.

That longer term project is a consolidated tape for equities, expected to launch next year. The consolidated tape would bring together real time trading data from multiple platforms into a single feed, making it easier for investors to see where and how shares are being traded. Similar systems already operate in the United States and parts of Europe, and have long been discussed as a missing piece of UK market infrastructure.

The push for greater transparency forms part of a broader effort to revive the appeal of London’s capital markets. The UK has seen a decline in initial public offerings in recent years, alongside high profile decisions by some companies to list abroad or shift their primary listing overseas. In response, regulators and the government have introduced changes to listing rules and capital raising frameworks designed to make it easier and cheaper for firms to access funding.

Supporters of the FCA’s plan say clearer data could help investors better assess trading conditions and valuations, potentially narrowing the gap between UK and US markets. Critics, however, warn that publishing sensitive trading information could deter some participants who value anonymity, particularly in dark pools.

The FCA has said it is consulting widely with market participants before finalising its approach. If implemented, the move would represent one of the most significant transparency initiatives in the UK equity market in years, with implications for investors, issuers and trading venues alike. As competition between global financial centres intensifies, regulators appear determined to use data and openness as tools to strengthen London’s standing.