FCA advances package of equity market transparency reforms

The FCA equity markets package sets the framework for a UK equity CTP, seeks views on income sharing and inclusion of SI pre-trade data and proposes changes to UK equity transparency regime

The FCA has published a package of reforms on UK equity markets and transparency. The FCA’s findings on UK equity markets are presented in a consultation paper (FCA CP26/30) which includes proposals to improve the value of SI pre-trade transparency. Under the revised rules, UK equity SIs will need to provide public quotes of a price and volume at which they are generally prepared to trade (up to standard market size), while still being able to provide price improvements for individual transactions. The CP also highlights the FCA’s renewed focus on equity SIs’ trading behaviour and the trading venue perimeter, as well as proposing amendments to equity post-trade transparency requirements which would see back reporting limited to three years and the exclusion for non-price forming transactions expanded to cover on-venue trades, and putting forward guidance for trading venues on market outages. 

The package also includes final rules for the UK equity consolidated tape framework (FCA CP26/31). Importantly, the FCA has put forward new proposals for the UK equity CTP to share some of its income with data contributors. Having concluded (amongst other findings) that equity systematic internalisers contribute to liquidity and price formation in UK equity markets, the FCA is also proposing to capture attributed pre-trade (quote) data from equity systematic internalisers within the equity CTP.

Timings

The timeline for the equity package is busy, with a call for input on CTP income sharing closing on 18 September 2026, and the consultation on the inclusion of SI pre-trade data in the UK equity CTP closing on 16 October 2026. Following this, the FCA intends to finalise the remaining rules for the equity CTP in early 2027. There will also be further consultation on how CTP income would be distributed between data providers later this year. The tender for the UK equity CTP is set to commence in early 2027, with the CTP expected to go live later in 2027 / early 2028. In the interim, the FCA will share certain consolidated UK post-trade equity data on its website. 

The consultation on the changes to the UK equity transparency requirements also closes on 16 October 2026, with final rules due in H1 2027. We would expect any rule changes to the equity transparency regime to apply before the UK equity CTP commences operation.

Read our briefing note for more detail on the package of reforms.