Financial Conduct Authority
FCA begins review on data in wholesale markets
The Financial Conduct Authority (FCA) yesterday began a review into the use and value of data and advanced analytics in wholesale financial markets, both now and in the future.
The FCA is using its Call for Input (CFI) to better understand how data and advanced analytics are being accessed and used, the value offered to market participants and whether they are competitively sold and priced.
The FCA will use its CFI to determine whether it needs to do further work to address any harm that it identifies.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, yesterday 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.”
The CFI considers the use and supply of market data, with a particular focus on trading data and benchmarks. Trading data and benchmarks play a vital role in wholesale financial markets.
They are used to trade, make investment decisions, to evaluate positions and to meet regulatory obligations. 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.
The CFI also invites comments about access and the changing use of data and analytical techniques across all wholesale financial markets.
The FCA wants to further understand how innovations in data are generated and used, the value offered to market participants and whether data are being competitively sold and priced.
This will help to assess what the implications are for competition and market integrity in wholesale financial markets now and in the future.
The scope of the review includes both FCA-regulated and connected, non-regulated activities and firms. This will allow the FCA to examine how these non-regulated firms and activities may affect competition in markets that the FCA regulates.
The CFI is open for feedback until 1 May 2020. A Feedback Statement will be published in Autumn 2020, which will set out the findings and any next steps.
Notes to Editors
Latest News from
Financial Conduct Authority
Christopher Woolard to chair review of unsecured credit market regulation17/09/2020 14:10:00
The Financial Conduct Authority (FCA) has announced that Chris Woolard will chair a review of the future regulation of the unsecured credit market, reporting to the FCA Board.
FCA proposes the next stage of support for consumer credit and overdraft customers17/09/2020 10:25:00
The Financial Conduct Authority (FCA) has announced proposals to ensure that firms provide tailored support for users of consumer credit and overdraft products who continue to face payment difficulties due to coronavirus (Covid-19).
FCA publishes Decision Notice against Corrado Abbattista for market manipulation16/09/2020 14:10:00
The FCA has published a Decision Notice today in respect of Corrado Abbattista, an experienced trader and a portfolio manager, partner and Chief Investment Officer at Fenician Capital Management LLP, for market abuse, imposing a financial penalty of £100,000 and prohibiting him from performing any functions in relation to regulated activity.
Result of FCA’s Business Interruption test case15/09/2020 13:20:00
The High Court has today handed down its judgment in the Financial Conduct Authority’s (FCA)’s business interruption insurance test case.
FCA seeks views on how to improve the consumer investment market15/09/2020 11:20:00
The FCA has today launched a Call for Input (CFI) to help shape its work on improving the consumer investment market.
FCA finalises its expectation for firms on maintaining access to cash for customers14/09/2020 15:05:00
The FCA has today set out its expectations for the steps firms should take when considering closing branches or ATMs, or converting a free-to-use ATM to pay-to-use.
FCA confirms the next stage of support for mortgage borrowers14/09/2020 13:20:00
The Financial Conduct Authority (FCA) has confirmed the support mortgage borrowers will receive if they continue to face payment difficulties due to coronavirus.
FCA publishes Annual Report and Accounts 2019/2011/09/2020 12:25:00
The Financial Conduct Authority (FCA) has published its Annual Report and Accounts, which looks back on the organisation’s key pieces of work throughout 2019/20.
FCA publicly censures former Worldspreads CEO for market misconduct10/09/2020 10:25:00
The Financial Conduct Authority (FCA) yesterday published a Final Notice in respect of Conor Foley, the former Chief Executive Officer of Worldspreads, publicly censuring him for market abuse and banning him from performing any roles linked to regulated activity.