UK Financial Conduct Authority to Tackle Potential Inefficiencies in Trading Data Including Benchmarks, Credit Ratings & Market Vendor Services, Resul
London Stock Exchange Group Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2023 Investment Day | 2023 Family Office Summits | Family Office Circle This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion. 
UK Financial Conduct Authority to Tackle Potential Inefficiencies in Trading Data Including Benchmarks, Credit Ratings & Market Vendor Services, Resulting in Higher Costs for Investors, Less Effective Investment Decisions & Preventing New Firms from Entering the Market 11th March 2023 | Hong Kong
The UK Financial Conduct Authority (FCA) is launching a wholesale data market study to investigate potential inefficiencies in trading data including benchmarks, credit ratings & market vendor services, resulting in higher costs for investors, less effective investment decisions and preventing new firms from entering the market. UK FCA: “Benchmarks are widely used in financial markets, for example as a reference for funds to track or to evaluate an asset manager’s performance. Access to high-quality credit ratings helps investment managers and others assess financial risk, influencing which investments they make. Market data vendors are key players in wholesale data markets as they provide a one stop shop for many wholesale data users. If the FCA finds evidence of competition concerns in one or more of these markets, it will consider the most appropriate way to address these concerns, including, for example, through rule changes as part of the upcoming adoption of retained EU law and wider influencing of international standards.” Sheldon Mills, UK FCA Executive Director of Consumers & Competition: “Our work aims to make sure that competition is working well in wholesale data markets and market participants can access data they need. This is important to help foster the competition and innovation that will help boost the UK economy and secure better outcomes for investors. We will use the findings from our wholesale data work and findings from our market study to guide us in our efforts to achieve these aims.” More info below.
“ UK Financial Conduct Authority to Tackle Potential Inefficiencies in Trading Data Including Benchmarks, Credit Ratings & Market Vendor Services, Resulting in Higher Costs for Investors, Less Effective Investment Decisions & Preventing New Firms from Entering the Market “
- Article continues below - Web links may be disabled on mobile for security. Please click on desktop. Quick Links, Ads & Announcements Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2023 Investment Day | 2023 Family Office Summits | Family Office Circle New to Caproasia Learn More | Sign Up | Subscribe | Register Events The 2023 Investment Day | HK & SG Where do you invest $250k, $1 million, $10 million, $100 million or $1 billion? Can you generate IRR of 10% / 15% / 20% or more? Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Taking place on 28th March 2023 in Hong Kong, 4th April 2023 in Singapore, and Virtual Investment Day in April 2023. Visit | Register here
UK Financial Conduct Authority to Tackle Potential Inefficiencies in Trading Data Including Benchmarks
London Stock Exchange Group Financial Conduct Authority to tackle competition problems with the trade data market. A new Financial Conduct Authority (FCA) report has found that competition in some parts of the wholesale data market is not working as well as it should.
2nd March 2023 – Access to good quality, fairly priced trade data is important for the whole financial system. It allows for properly informed, timely investment decisions. Trading data includes information on prices and volumes traded and supplied by venues, like stock exchanges, where shares and other financial products are bought and sold.
Markets in which firms compete to provide good quality wholesale data will make the UK an attractive place to do business for a wide range of financial service providers, and so can improve the UK’s international competitiveness.
The FCA’s work in this area is fundamental to its efforts to strengthen the UK’s position in global wholesale markets while maintaining the UK’s reputation as a leading global market of choice.
Alongside its findings on competition in the market for trade data, the FCA has launched a market study amid concerns that competition in other types of wholesale data markets may not be as effective as they should be.
This new wholesale data market study will investigate potential competition problems in the markets for benchmarks, credit ratings data and market data vendor services and whether they could be resulting in higher costs for investors, less effective investment decisions and preventing new firms entering these markets.
Trade data findings report
Today’s report suggests the market currently does not work as effectively as it could in allowing effective competition and innovation which is a key part of the FCA’s strategy to improve the UK’s financial services sector. Among the findings, the report found:
- Some trading markets are concentrated among a few firms so there is little choice for users not to buy this important data and switching supplier is not an easy option.
- The way data is sold can be complex, making it harder for data users to make informed choices.
- Complexity and limited choice result in additional costs to data users. These are likely to be passed on to UK retail investors and savers.
- Despite rules in place requiring delayed data to be distributed for free, many users end up with little choice but to pay for data.
The FCA is working with the Government to develop consolidated tapes, which collect wholesale data across the market and distribute them in single, standardised data feeds. Consolidated tapes could help improve the overall cost, quality and accessibility of wholesale data.
Launch of the wholesale data market study
The FCA’s new wholesale data market study will investigate whether the markets for benchmarks, credit ratings data and market data vendor services are working well.
Benchmarks are widely used in financial markets, for example as a reference for funds to track or to evaluate an asset manager’s performance. Access to high-quality credit ratings helps investment managers and others assess financial risk, influencing which investments they make. Market data vendors are key players in wholesale data markets as they provide a one stop shop for many wholesale data users. If the FCA finds evidence of competition concerns in one or more of these markets, it will consider the most appropriate way to address these concerns, including, for example, through rule changes as part of the upcoming adoption of retained EU law and wider influencing of international standards.
Notes
You are:
InvestorProfessionalFamily OfficeExecutive
Select:
TrialSubscriptionMembershipEvents
Interests / Events / Summits / Roundtables / Networking:
Professional InvestorPrivate WealthFamily OfficePrivate BankingWealth ManagementInvestmentsAlternativesPrivate MarketsCapital MarketsESG & SICEO & EntrepreneursTax, Legal & RisksHNW & UHNWs Insights
Your Name*
Company*
Job Title*
Email 1 (Work / Personal)*
Email 2 (Work / Personal)
Country
New to Caproasia Learn More | Sign Up | Subscribe | Register Events Caproasia Users - Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
- Professional Investor
- Family Office
- HNW Partnership
- Family Office Circle
- Family Office Networking
- Family Office Roundtable
- The Family Office Summit
- 28th March 2023 - Hong Kong
- 4th April 2023 - Singapore
- April 2023 - Virtual
- Sept 2023 - Hong Kong
- Oct 2023 - Singapore
- Oct 2023 - Hong Kong
- Visit: The Investment Day | Register: Click here
- The Investment Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
Owl Media Group takes pride in providing social-first platforms which equally benefit and facilitate engagement between businesses and consumers and creating much-needed balance to make conducting business, easier, safer, faster and better. The vision behind every platform in the Owl Media suite is to make lives better and foster a healthy environment in which parties can conduct business efficiently. Facilitating free and fair business relationships is crucial for any thriving economy and Owl Media bridges the gap and open doors for transparent and successful transacting. No advertising funds influence the functionality of our media platforms because we value authenticity and never compromise on quality no matter how lucrative the offers from advertisers may seem.