The Financial Conduct Authority (FCA) has said it is on track to publish its wholesale data market study by 1 March 2024.

The regulator is currently investigating markets for benchmarks, credit ratings data and market data vendor services.

The work is part of a study the Financial Conduct Authority launched in to see if these sectors have competition issues.

Wholesale alongside capital markets rely on data to function effectively.

The government has flagged both markets as critical for the UK’s economic growth and international competitiveness.

Its Edinburgh Reforms are meant to boost the UK’s growth prospects and make it more attractive for foreign investors.

And the FCA is asking whether the data that underpins these markets aligns with those goals.

In the update report published today (31 August) the regulator said it has decided not to refer any of the three markets to the Competition and Markets Authority (CMA).

It also highlights emerging issues such as concerns about market power of large and established firms, which can reduce competition.

The report also flags commercial practices that could increase complexity and reduce transparency in pricing and contractual terms.

Other FCA work on wholesale data includes the trade data review, whose findings and next steps were published alongside the launch of the market study.

The FCA also launched a consultation on proposals to promote the emergence of a consolidated tape provider (CTP) for bonds data in July 2023.

That includes discussion of extending such a framework to equities.

A consolidated tape (CT) is a continuous live stream of data about prices, volumes, bids and offers and executed trades for different asset classes.

The FCA will consider further how this other work might affect the products and services looked at in the market study.

It said: “Well-functioning data markets are important for economic growth and the UK’s international competitiveness.

“Our work is a key part of our broader strategy to strengthen the UK’s position in global wholesale markets.”

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