UK financial data market escapes competition probe for now

Britain’s financial watchdog has stopped short of referring parts of the financial data market to the competition authority for now despite concerns over the power of large companies, it said on Thursday.

The Financial Conduct Authority (FCA) said in March that competition in some parts of the wholesale financial data market is not working as well as it should, a sector which includes information on stock prices used by investors.

It also launched a study to investigate if markets for benchmarks, credit ratings data and market data vendor services are working well, setting a Sept. 1 deadline to decide whether to refer any of the three market sectors to the Competition and Markets Authority (CMA).

“We are continuing to identify any harm in these markets and, where appropriate, potential ways to address it,” an FCA statement said.

“We consider at this stage that we are likely to be best placed to address any harm and have invited views on this proposed stance.”

The update report highlights emerging issues in these markets, including concerns about the market power of large and established companies, which can reduce competition.

“The report also highlights commercial practices that could increase complexity and reduce transparency in pricing and contractual terms,” the FCA added.