Despite finding room for improvements in the distribution of wholesale market data, the Financial Conduct Authority has ruled out intervention for fear of "unintended consequences".
The UK regulator has been conducting an extensive examination of competition in the markets for credit ratings data, benchmarks and market data vendor services.
The regulator has ruled out a significant intervention because of potential unintended consequences, such as on the availability and quality of data, in a market relied upon by investors worldwide.
However, across all three markets, the FCA has identified areas where competition does not work well. Users may be paying higher prices for the data they buy than if competition was working more effectively, the study concludes.
Rather than whoesale enforcement, the FCA says it will take forward ideas to help support wholesale data being available on fair, reasonable and transparent terms as part of its work to ‘repeal and replace’ assimilated EU law.
Sheldon Mills, executive director of consumers and competition, explains: "Our market study found that firms can access the data they need to make effective investment decisions.
"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."