FCA to review competition concerns in wholesale data markets

Beginning this summer, the watchdog will look into concerns that complex contracts for benchmarks and indices prevent switching to cheaper, better quality or more innovative alternative providers. 

Its second market study, starting before the end of this year, will assess whether high charges for access to credit ratings data is adding costs to investors and limiting new market entrants. 

Additionally, the FCA will begin gathering further information on competition in the market for wholesale trading data. This will include information on how many financial instruments are being traded, what people are prepared to pay for them and the price at which trades are executed. 

Commenting on this news, the FCA’s consumers and competition executive director Sheldon Mills said: “Access to wholesale data is really important for those who want to make investment decisions. Without it, they lack the information they need to make properly informed choices. 

“Our Call for Input and planned market studies are intended to ensure that competition is working well, that information is available to market participants that want it, and that innovation is keeping up with market developments.”