The Financial Conduct Authority has set out its plans to improve transparency of equity markets.
This includes creating a single source of data on the stock markets.
It said as the UK equity market has offered investors a wide choice of trading options, it has “increased fragmentation”.
Simon Walls, executive director of markets at the FCA, said: “UK equity markets have evolved through competition, innovation and the choices made by investors and companies.
“These continue to be great foundations for a liquid and resilient market.
“A downside of choice can be complexity, but this needn’t mean a lack of transparency.”
He said a consolidated tape, the real-time electronic record of stock prices, would make it easier for investors to see the whole market picture.
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The FCA aims to deliver this tape within the next 18 months and aims to introduce an interim market activity reporting tool for shares.
The interim tool is a “market activity reporter” for shares which provides a view of overall UK equity market activity each day.
The regulator has published a consultation on the reforms and asks for views on which indicators should be tracked.
Consultation on the plans is open until October 16.
tara.o’connor@ft.com
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