The FCA has announced that it will release hidden trading data to combat the negative impact of under-reporting on the London Stock Exchange.
The data published by the FCA covers a large portion of the market and includes trades completed in dark pools and private platforms.
Regulators believe that current data tracks only the London Stock Exchange’s central order book and ignores “dark pools” and off-exchange exchanges, often missing nearly 75% of actual trading volume.
Is the London stock market made to look worse than it really is?
The UK’s Financial Conduct Authority (FCA) has confirmed that it will begin collecting and publishing comprehensive trading data from all available trading venues, including major stock exchanges, ‘dark pools’ and private trading platforms that operate away from public view.
The Financial Times reported that the FCA’s interim market director, Simon Walls, deemed the current method of measuring market health to be “stupid” and misleading.
The data investors and companies are looking at comes from the central limit order book of the London Stock Exchange (LSE), but it ignores large parts of the market where many large trades occur, such as scheduled auctions and dark pools.
Recent FCA estimates suggest a significant gap between reported data and reality. According to official records, there were about 270 million shares traded on the central order book between January and September last year.
However, the FCA believes that the actual total trading activity was around four times that figure. Showing only a portion of the trades makes the UK market appear less liquid, making it difficult for investors to buy or sell shares quickly without changing prices.
This perception of illiquidity has become a major issue for the City of London, as several major companies consider moving their primary listings to New York, where the market is seen as deeper and more active.
Can the FCA stop institutional migration to Wall Street?
Apart from the transparency plan, the UK government and regulators have been working for more than two years to improve London’s competitiveness.
For example, the Public Offering and Trading Regulations of January 19, 2026 (rower), which replaced old European-era laws with a system designed specifically for the UK.
One of the biggest changes in the January 2026 rules is how much easier it is now for already listed companies to raise further capital.
Previously, if a company wanted to issue a large number of new shares, it had to issue a large and expensive document called a prospectus. Companies can now issue up to 75% of their existing share capital without the need for a new prospectus.
Additionally, the FCA is developing a single real-time electronic feed that will combine all price and volume data for stocks into one stream. The full version of the platform for equities is due to be rolled out next year, but the FCA has already launched a version for fixed income.
Despite the UK’s efforts, the US market often offers higher valuations and attracts more specialized tech investors. Well-known companies such as Flutter and travel company TUI have already shifted their main focus away from London in recent years.
Still, several “unicorn” companies, including digital bank Monzo and software company Visma, are reportedly considering IPOs in London in 2026, provided new reforms make the market more attractive.
