Key facts
- The Financial Conduct Authority (FCA) has assessed London Stock Exchange trading volumes.
- FCA estimates trading volumes are up to three times higher than previously estimated.
- The higher estimates account for "dark trading" through non-official channels.
- This suggests greater market liquidity than official exchange data indicates.
The Financial Conduct Authority (FCA) has indicated that trading volumes on the London Stock Exchange are significantly higher than previously understood. The FCA's analysis suggests that when "dark trading"—transactions executed away from public exchanges—is factored in, trading volumes could be as much as three times greater than official figures show. This revelation implies a deeper level of market liquidity than is apparent from exchange data alone. The FCA's findings suggest that the true depth of the market may be underestimated, potentially influencing how market liquidity and trading activity are assessed by regulators and market participants. This revised perspective on trading volumes could lead to adjustments in market oversight strategies and the evaluation of market efficiency.