About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

FCA Launches Wholesale Data Review

Subscribe to our newsletter

The UK’s Financial Conduct Authority (FCA) has begun a review into the use and value of data and advanced analytics in wholesale financial markets, both now and in the future, in a bid to better understand how these services are being accessed and used, the value offered to market participants, and whether they are competitively sold and priced.

Access to data is needed to identify investment opportunities, trade, make investment decisions, to evaluate positions and to meet regulatory obligations. But as the demand for data increases, firms that generate data may be able to use or market their data in ways which create poor outcomes for users and ultimately end-consumers, in particular, data generators increasing charges or limiting the availability of data.

The Call For Input (CFI) will help the regulator to determine what (if any) action it needs to take to control or direct the development of this market, whilst also ensuring that its regulatory approach does not limit innovation.

It explores three primary areas: trading data, benchmarks, and market data vendor services. Trading data and benchmarks play a vital role in wholesale financial markets – used to trade, make investment decisions, to evaluate positions and to meet regulatory obligations; while trading venues and market data vendors also use them to provide other services, such as consolidated data feeds. The FCA wants to know whether users have concerns with the way trading data, benchmarks and vendor services are priced and sold.

“Feedback from our previous studies suggested that trading venues and benchmark administrators may not face sufficient competitive pressures, allowing them to charge high prices to clients and competitors. We want to know whether this is the case, which users are affected and why. This will help us decide whether further work is necessary to address any harms we observe,” says the regulator.

The FCA is also keen to explore the changing use of data and analytical techniques across all wholesale financial markets, with a view to understanding how innovations in data generation and use may change wholesale markets, and whether current regulations are blocking innovation.

Suppliers of data (and related products and services), users of data, and any stakeholders who interact with wholesale market participants, are invited to offer feedback by May 1, 2020. Following the CFI, the watchdog is likely to commission a further investigation on the longer-term impact of the changing use and value of data and data analytics.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to optimise SaaS data management solutions

Software-as-a-Service (SaaS) data management solutions go hand-in-hand with cloud technology, delivering not only SaaS benefits of agility, a reduced on-premise footprint and access to third-party expertise, but also the fast data delivery, productivity and efficiency gains provided by the cloud. This webinar will focus on the essentials of SaaS data management, including practical guidance on...

BLOG

Northern Trust Integrates FINBOURNE Technology with Data Mesh Digital Backbone

Northern Trust, a large asset servicer, has selected FINBOURNE Technology to provide enhanced valuations and reporting capabilities for its enterprise global technology. The Chicago-headquartered firm ran a thorough technology partner selection process before deciding to implement FINBOURNE’s cloud-native financial data management solution LUSID and data virtualisation engine Luminesce to modernise its valuations and reporting functions...

EVENT

TradingTech Briefing New York

Our TradingTech Briefing in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...