LONDON, Feb 29 (Reuters) – Britain’s Financial Conduct Authority confirmed on Thursday that it had ruled out “significant interventions” in the market for stock and bond prices, saying that stopping banks and asset managers overpaying for data “could take years”.
The regulator examined competition in the markets for credit ratings data from Moody’s, S&P and Fitch Ratings, benchmarks and the “highly concentrated” 3.3 billion pound ($4.18 billion) data vendor services market.
Publishing its final findings, opens new tab on Thursday, the watchdog said it had identified areas where competition does not work well and that banks and asset managers may be paying higher prices for data than if competition was working more effectively.
“The quality and availability of wholesale data is integral to well-functioning wholesale financial markets,” said Sheldon Mills, Executive Director of Consumers and Competition at the FCA.
“We do not believe the case has been made for significant interventions. However, we will examine ways to help support wholesale data being provided on fair, reasonable and transparent terms,” he said.
The final report is in line with initial findings last August.
The FCA said it would review rules but changes could “take a number of years” given the international nature of some of the markets.
British markets industry body AFME, whose members are users of financial data for trading stocks and bonds, said the findings were consistent with AFME’s concerns.
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