FCA is to continue to investigate the markets for benchmarks, indices, credit ratings and trading data after responses to its call for input highlighted concerns that there is limited competition in the markets and that this may increase costs and affect investment choices for investors. Investment managers need wholesale data in order to identify and evaluate investment opportunities. FCA wants to see good competition for the benefits of the managers and ultimately consumers.
FCA will start a market study in the summer, focusing on concerns that complex contracts for benchmarks and indices are preventing switching to cheaper, better quality or more innovative alternative providers. Later in the year, a separate study will look at charges for access to credit ratings data.