The Financial Conduct Authority (FCA) has announced a new investigation into competition in some areas of the wholesale data market.

The watchdog is concerned that competition in certain data markets is not working as well as it should and will investigate various metrics to determine whether it is working in a fair and effective way.

The FCA said its new study will probe potential competition problems in the markets for benchmarks, credit ratings data and market data vendor services, and whether they could be resulting in higher costs for investors, less effective investment decisions and preventing new firms entering these markets.

Sheldon Mills, executive director, consumers and competition at the FCA commented: “Our work aims to make sure that competition is working well in wholesale data markets and market participants can access data they need.”

He said that the regulator’s work is important to help foster the competition and innovation that will help boost the UK economy and secure better outcomes for investors.

An earlier trade data findings report by the authority, which the new study will build upon, found possible discrepancies including around the way data is sold, which it concluded could make it harder for data users to make informed choices.

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