MFA welcomes the FCA’s review of the structure of UK equity markets, and its recognition that investors benefit from a diversity of execution methods suited to their specific needs. In our view, the trends identified in the Consultation reflect healthy competition between execution mechanisms and the legitimate pursuit of best execution for end investors, rather than any structural degradation of liquidity or price formation.
MFA explains:
- The diversity of execution mechanisms reflects healthy competition, not market failure.
- Market data, connectivity and licensing costs remain among the most significant barriers to accessing liquidity.
- A comprehensive, reasonably priced consolidated tape is the most effective structural response.
- MFA supports streamlining post-trade transparency but does not support extending public reporting to equity swaps at this time.
- MFA supports removing disproportionate and duplicative requirements.
- Operational resilience must preserve the integrity of the official closing price.
