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FCA reviews data on wholesale markets

Jake Carter

March 9, 2020

The Financial Conduct Authority has begun reviewing the use and value of data and analytics in wholesale financial markets.

The assessment looks at both the current market and the future market.

According to the authority, it will use its ‘Call for Input’ to determine whether it needs to do further work to address any harm that it identifies.

The CFI has a particular focus on trading data and benchmarks. It seeks to understand whether users have concerns with the way trading data, benchmarks and vendor services are priced and sold.

Furthermore, it also requests commentary on the access and changing use of data and analytical techniques across all wholesale financial markets.

The FCA intends to generate an understanding on how innovations in data are developed and used.

The CFI is open for feedback until 1 May 2020. Following this, a feedback statement will be published in Autumn 2020.

Christopher Woolard, executive director of strategy and competition, FCA, said: “Wholesale financial markets play a vital role in our economy, and it is important that they work well.

“There is rapid and wide-ranging innovation in data in wholesale markets as firms become better able to gather and analyse data.

“More efficient, comprehensive and timely data for wholesale market participants have the potential to generate significant benefits.

“But these changes may also create new risks that may require us to act. We are launching this review to better understand any risks and assess whether FCA action is needed.”


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