Source · Select Committees · Treasury Committee
Recommendation 6
6
Not Addressed
Paragraph: 35
Continue monitoring market impact of the new consolidated tape by Government and regulators.
Recommendation
The Sub-Committee remains sceptical that a government-approved monopoly for providing data to market participants through a consolidated tape is good for competition. Once a monopoly were granted, the incumbent would have little incentive to reduce costs or to innovate. Given the claimed benefits that a consolidated tape would provide to market participants, and the widespread consensus within the market that these benefits do exist, it is not unreasonable to expect the financial markets of the UK to be able to create their own conditions for such a tape to emerge without the regulator granting a monopoly. The Sub-Committee’s preference would Edinburgh Reforms One Year On: Has Anything Changed? 27 have been that market forces created a consolidated tape, therefore the Government and regulators should continue to monitor the impact on market forces of the new tape.
Government Response Summary
The government notes that the Financial Conduct Authority (FCA) published rules for a UK consolidated tape for bonds, but does not directly address the recommendation to monitor its impact on market forces.
Paragraph Reference:
35
Government Response
Not Addressed
HM Government
Not Addressed
Further progress has been made since the report was published, including: ... • The FCA published their rules for a UK consolidated tape for bonds on 20 December 2023.