Jim Goldie, Head of EMEA ETF Capital Markets at Invesco, has commented on the FCA’s proposals for a UK consolidated tape, published this week.
Goldie says: “It was announced this week that the EU consolidated tape will include pre- and post-trade transparency, something that is desperately needed in Europe. However, it would’ve been great to see the EU consolidated tape go one step further to include venue attribution, which would have maximised the utility of the tape.
“This is hopefully something we will see addressed by the UK consolidated tape proposals, as venue attribution is incredibly important to provide transparency to investors around which venues are displaying best execution at a given point in time. Additionally, similar to the EU’s consolidated tape, it will be incredibly important to see ETFs included alongside equities in the UK version.
“The added transparency a consolidated tape will bring to the UK can only contribute to more robust capital markets via improved transaction cost analysis. This will help to document best execution, enhance market surveillance, and improve liquidity risk management and portfolio valuation, all of which adds to investor protection.
“However, the devil will be in the detail. It is important that the UK consolidated tape is as near real-time as possible and includes ETFs alongside equities in one tape, similar to the EU consolidated tape. It is also important that it includes venue attribution, unlike the EU consolidated tape.”
