(Bloomberg) -- The U.K. is expanding the Financial Conduct Authority's powers in a package of post-Brexit changes to the way it regulates the City of London.
The reforms will give the FCA responsibility for overseeing transparent fixed income and derivatives trading, as well as pre-trade transparency, according to a government statement on Tuesday.
The regulator will also help the industry create a single data feed from across several trading venues, known as a consolidated tape. This is an ambition that's long been held by the European Union, which is working on a cross-continental financial system that could compete with London following the U.K.'s withdrawal from the bloc in 2021.
The U.K. also plans to remove “double volume caps” on how much share-trading can occur on dark pools and repeal the so-called share trading obligation that determines where equities must be bought and sold. Regulation around the listing of companies will also be simplified.
But -- as previously signalled -- the U.K. has no plans for a wholesale overhaul of existing rules, as some had hoped after Brexit.
“In essence, these are common-sense, yet significant changes,” John Glen, the economic secretary to the Treasury, said in a speech Tuesday at the Association of Financial Markets in Europe. “This was never going to be and is not about change for change's sake. I should stress that we are still very much signed up to the overall objectives of the MiFID regime.”
Other changes include:
- Encouraging broader ownership of public companies, including for retail investors
- Delegating the commodities position limits regime to trading venues
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