The market for wholesale financial data isn’t working well with too few firms competing in some trading markets, and data often being sold in complex ways that hurts consumers, according to the UK’s financial watchdog.
(Bloomberg) — The market for wholesale financial data isn’t working well with too few firms competing in some trading markets, and data often being sold in complex ways that hurts consumers, according to the UK’s financial watchdog.
The initial Financial Conduct Authority report has prompted a study that will investigate “potential competition problems” in the markets for benchmarks, credit ratings data and market data vendor services and whether this means higher costs for investors, it said on Thursday.
Competition in providing wholesale data is important in helping to foster “the competition and innovation that will help boost the UK economy and secure better outcomes for investors,” Sheldon Mills, executive director of Consumers and Competition at the FCA, said.
“Market data is obviously an important area and we look forward to seeing what that’s about and working with the FCA,” David Schwimmer, London Stock Exchange Group Plc’s chief executive officer, said on an earnings call Thursday. “There’s a very competitive market for data on a global basis so not a concern there.”
Bloomberg LP competes in the provision of trading data to investors.
–With assistance from Marion Dakers.
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