The Financial Conduct Authority (FCA) of Britain announced on Thursday that it would not pursue major interventions in the stock and bond data market. This decision comes after an examination of competition in credit ratings data and vendor services, valued at £3.3 billion.
Despite concerns about overpricing and competition inefficiencies, the FCA concluded that significant interventions were unwarranted.
Sheldon Mills, Executive Director of Consumers and Competition at the FCA, emphasized the importance of quality and availability of wholesale data for financial markets’ proper functioning. While acknowledging areas where competition falls short, the FCA believes that no compelling case exists for major interventions.
However, it pledges to explore ways to ensure fair, reasonable, and transparent terms for wholesale data provision.
The final report aligns with preliminary findings from last August. The FCA intends to review regulations, but any changes may take several years due to the international nature of the markets involved.
The Association for Financial Markets in Europe (AFME), representing financial data users, welcomed the FCA’s stance, advocating for a holistic approach to data regulation. They emphasize the potential benefits of consolidated tapes in promoting competition and accessibility.
David Schwimmer, Chief Executive of the London Stock Exchange Group, expressed support for fair and transparent data distribution.
He highlighted the importance of such principles in both data provision and consumption. Overall, the FCA’s decision reflects a cautious approach to addressing competition concerns in the financial data market, prioritizing transparency and fairness.
