Global: FCA Declines Intervention in Wholesale Data Market Despite Identified Improvements

The Financial Conduct Authority (FCA) in the UK has decided against significant intervention in the wholesale market data sector, despite recognizing areas for improvement in data distribution. The FCA conducted a thorough examination of competition in markets related to credit ratings data, benchmarks, and services provided by market data vendors.

The regulatory body expressed concerns about potential unintended consequences that could affect the availability and quality of data, given the global reliance on this market by investors. While ruling out substantial intervention, the FCA acknowledged shortcomings in competition within these markets, leading to higher costs for data users.

Rather than pursuing wholesale enforcement, the FCA intends to explore initiatives that facilitate the availability of wholesale data on fair, reasonable, and transparent terms. This aligns with its broader initiative to “repeal and replace” assimilated EU law.

Sheldon Mills, Executive Director of Consumers and Competition, emphasized the findings of the market study, stating that firms currently have access to the necessary data for effective investment decisions. Mills highlighted that, at present, there is insufficient justification for substantial interventions. However, the FCA remains committed to exploring measures that promote fair, reasonable, and transparent terms for the provision of wholesale data.