CP22/12: Improving equity secondary markets

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We are consulting on rule changes to improve trade execution and post-trade transparency for investors. We are also seeking views on future guidance on outages and the structure of UK markets for retail orders.

Read CP22/12 (PDF)

Why we are consulting 

We want to improve how equity markets operate. We aim to reduce harm by amending provisions that impose compliance and operational costs on firms but do not deliver demonstratable benefits to end users or to the functioning of equity markets. We are also proposing amendments which aim to improve the quality of post-trade information and the efficiency of consolidating trade reports from multiple sources. 

We are seeking views on future guidance on outages, with the aim of enhancing the resilience of UK markets. 

We are also seeking views on the structure of UK markets for retail orders. Specifically, on whether improvements can be made to the way retail orders for shares are executed in the UK. 

Who this applies to 

The proposals will apply to: 

  • trading venues 
  • investment firms 
  • UK branches of overseas firms undertaking investment services and activities 

Our proposals will also be of interest to law firms, market data and analytics firms, consultancies, retail investors and trade associations. 

Background to improving equity secondary markets 

This consultation paper is part of the Wholesale Markets Review (WMR), the review of UK wholesale financial markets we have been conducting with the Treasury. 

Our Strategy 2022-2025 and Business Plan include a commitment to strengthening the UK’s position in wholesale markets. To achieve this, we said that we would tailor our rules to better suit our markets and to promote competition and positive change. We said that we would develop proposals on secondary markets, including on the transparency regime for equity markets. This consultation supports those objectives and commitments. 

We intend to consult on other reforms covered in the WMR which are more closely linked to changes to legislation over the course of this year and next. This approach will allow firms to absorb and respond to our proposals in a more manageable way. 

Respond to this consultation 

Online response form

Please respond by 16 September 2022

Next steps 

We will consider responses and submit the relevant updated technical standards to the Treasury for approval. If the Treasury approves them, we will make and publish a policy statement and amend the technical standards.