FCA launches a consultation on revenue sharing and incident reporting for the UK equity consolidated tape, aiming to align incentives and boost market reliability.
The Financial Conduct Authority (FCA) has opened a formal consultation on two major regulatory adjustments that will affect every participant in the UK equity consolidated tape ecosystem. The first set of proposals tackles how the income generated by the equity consolidated tape provider (CTP) is redistributed to the firms that supply raw trade data.
The second set expands the mandatory operational incident-reporting regime, requiring all current and future CTPs to log and forward significant disruptions in a uniform manner. Both initiatives are designed to improve data quality, strengthen market integrity and ensure that the cost of accessing a comprehensive UK equity feed remains transparent and affordable.
Proposed income-sharing framework
In July 2026 the FCA signalled that the equity CTP must allocate a portion of its earnings back to the data contributors that feed the tape. The consultation now details how that portion will be calculated and formalised within the five-year concession agreement that the FCA will negotiate with the selected CTP.
The agreement will prescribe a specific metric – for example a percentage of net revenue or a fixed fee per volume of data – and will set a target share that the CTP must pass on to contributors. These figures are still under review, with the FCA inviting feedback on the most appropriate baseline and percentage before finalising the Feedback Statement slated for early 2027.
Method for allocating revenue among contributors
Beyond the overall share, the FCA proposes a detailed allocation model that determines how the earmarked income is distributed among individual data providers. According to the draft, every UK trading venue and approved publication arrangement (APA) would be eligible, with the weight of each participant linked to the relative value of the trades they submit to the equity tape. A distinct element of the plan reserves half of the shared income for central limit order books and periodic auction systems, rewarding them for supplying high-quality pre-trade data. Meanwhile, trades originating from smaller venues would receive a higher weighting, recognising the disproportionate cost burden they face in delivering data. The FCA will codify these rules in its Handbook, with a policy statement expected in spring 2027.
Extended operational incident-reporting requirements
Current operational-incident obligations apply only to certain market-infrastructure providers under SYSC 15A and MAR 9. The FCA now proposes to bring all equity and bond CTPs under the broader SUP 15.18 regime, aligning them with the standards that apply to recognised investment exchanges. Under the new rules, any significant outage, data-feed interruption, or third-party failure must be reported to the FCA promptly and using a standardised template. These measures build on the final rules in PS 26/2, which take effect on 18 March 2027, and aim to give regulators a clearer, real-time picture of service reliability across the entire tape landscape.
Implementation timeline and consultation process
The consultation closes on 17 December 2026. Interested parties – including trading venues, APAs, systematic internalisers, existing and prospective CTPs, as well as trade associations – may respond via the FCA’s online response form or by emailing [email protected]. After the deadline, the FCA will review all submissions, refine the revenue-sharing metrics and allocation rules, and publish the definitive Feedback Statement and Handbook guidance in early 2027. The equity consolidated tape is expected to commence operations in 2027 or early 2028, once the contractual framework and reporting infrastructure are fully in place.
