The UK’s Financial Conduct Authority (FCA) on Thursday said that despite acknowledging the wholesale data market can be improved, the regulator has ruled out a significant intervention.

It said that it would not step in because of potential unintended consequences, “such as on the availability and quality of data, in a market relied upon by investors worldwide”.

Announcing its positioning on the issue the FCA said that it had identified areas where competition does not work well across all three markets, noting that users may be paying higher prices for the data they buy than if competition was working more effectively.

The FCA added that it would 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.

Publishing the regulator’s findings, Sheldon Mills, executive director of consumers and competition, said: “The quality and availability of wholesale data is integral to well functioning wholesale financial markets. 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.”

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