LONDON (Reuters) – Britain’s Financial Conduct Authority (FAC) said on Thursday it was launching a study to gauge potential competition issues in the trading data market.
The FCA says competition in some parts of the wholesale data market is “not working as well as it should”.
A trading data market is where investors buy information about what is happening in the financial markets, such as what prices assets are selling for, in order to make decisions.
Concentration in a small number of companies means that investors have little choice in who they buy their data from, resulting in additional costs for data users, and those costs are likely to be passed on to “UK retail investors and savers.” is likely to be passed on to ,” said the FCA.
According to the FCA, the study will examine potential competitive issues in the market for benchmarks, credit rating data and market data vendor services.
If evidence of competitive problems is found in any of those markets, the FCA may consider addressing them with “rule changes,” the statement said.
latest update
Show 2 more stories
Watchdog is currently working with the government to develop a system called “Unified Tape,” a way to collect wholesale data across markets and distribute it in a standardized feed, the statement said. .
Reporting by Elizabeth Howcroft, Editing by Sinead Cruz
Our criteria: Thomson Reuters Trust Principles.