Is the London stock market being made to look worse than it really is?

The FCA has announced that it will be publishing hidden trading data in order to combat the negative effects of underreporting on the London Stock Exchange. 

The data the FCA will be publishing covers a large portion of the market and includes trades completed in dark pools and private platforms. 

The regulator believes that present data often misses nearly 75% of actual trading volume because it only tracks the London Stock Exchange’s central order book, ignoring “dark pools” and off-exchange venues.

Is the London stock market being made to look worse than it really is?

Britain’s Financial Conduct Authority (FCA) confirmed it will begin collecting and publishing comprehensive trading data from every available venue, including the main stock exchanges, “dark pools” and private trading platforms that operate out of the public eye.

The Financial Times reported that Simon Walls, the interim director of markets at the FCA, regards the current way of measuring market health as “silly” and misleading. 

The data investors and companies pay attention to comes from the London Stock Exchange’s (LSE) central limit order book, which ignores a huge portion of the market, like periodic auctions or dark pools, where many large trades take place. 

Recent FCA estimates suggest the gap between reported data and reality is massive. Between January and September of last year, official records showed about 270 million share transactions in the central order book. 

However, the FCA believes the actual total trading activity was roughly four times higher than that figure. By only showing a fraction of the activity, the UK market appears less liquid, making investors believe that buying and selling shares quickly without changing the price would be difficult.

This perception of low liquidity has become a major problem for the City of London as several major firms are considering moving their primary listings to New York, where the markets are seen as deeper and more active. 

Can the FCA stop the institutional move to Wall Street?

Aside from the transparency plan, the UK government and regulators have been working for over two years to make London more competitive. 

For instance, on January 19, 2026, the Public Offers and Admissions to Trading Regulations (POATRs), 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 easy it has become for already-listed companies to raise more money. 

Previously, if a company wanted to issue a large amount of new shares, it had to publish a massive, expensive document called a prospectus. Now, companies can issue up to 75% of their existing share capital without needing 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 shares is expected next year, but the FCA is already launching a version for bonds.

Despite the UK’s efforts, American markets often offer higher valuations and a larger pool of specialized tech investors. High-profile names like Flutter and the travel firm TUI have already shifted their primary focus away from London in recent years. 

Still, several “unicorn” companies, including the digital bank Monzo and the software firm Visma, are reportedly considering London IPOs in 2026, provided the new reforms continue to make the market more attractive.

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