The FCA’s recent report on the wholesale data market is an important and high-quality study which echoes many long-standing buy-side concerns. It finds evidence of unequal market power in terms of market concentration, highly profitable margins, opaque pricing practices, excessive charging, bundling practices and complex licensing agreements, all of which negatively impact data users. Much of this data is indispensable for users to stay in business and fulfil regulatory obligations.

EFAMA and EFSA have expressed concern that, given the weight of the evidence, the FCA has chosen to take no immediate action and has not indicated a clear plan for future action. In a joint letter, we ask that they align with the work of ESMA on ‘reasonable commercial basis’ rules before the implementation of consolidated tape and provide more imminent concrete proposals for regulatory actions. Higher market data costs affect the whole value chain and addressing abuse of dominant market power is of utmost importance if the UK and EU want to achieve growth and competitiveness in their respective capital markets.  

 

Read the full statement here