Transparency in UK Equity Markets

‘Some of the activities of the City may bear considerable resemblance to those of a casino … even so there is much to be said for a regulatory system which would ensure that the roulette wheel is not rigged.’ The Securities and Investments Board (SIB) appears to have taken Professor Gower's comments to heart in its latest report on the regulation of UK equity markets. The report, according to SIB chairman, Andrew Large, is designed to ‘pave the way for the future’, boost investor confidence that the market is a clean and fair place to do business, while at the same time assuring firms that the regulatory system is responding to product innovation and new technological developments in a diverse market place. With this aim in mind, the report heralds a significant increase in transparency resulting from an agreement between SIB and the London Stock Exchange (LSE) on post‐trade publication and invites comments on two consultation documents on market integrity and market‐makers' privileges.