In a move reminiscent of a detective diving deep into the heart of a mystery, the Financial Conduct Authority (FCA) disclosed on Thursday its intent to unravel possible damage to competition in the market that dishes out data to the non-retail financial sectors.
FCA Probing Competition : The Heart of the Investigation
Serving as a mirror reflecting the health and movements of major businesses, benchmarks such as the FTSE 100 index act as litmus tests for investment performance. Similarly, credit ratings hold the flashlight to a company’s ability to honor its debt. Entwined within these intricate webs, vendor services feed financial entities with this crucial data.
Peering into the depths, the FCA stated, “Our mission is to unearth any potential harm within these realms, and to find means to rectify it, if found.” It’s as if the FCA is setting sail on treacherous waters, declaring their belief that they have the navigational prowess to weather the storm and are open to opinions on their intended journey.
FCA Probing Competition : Barriers and Blockades
A closer look reveals a landscape fraught with challenges. For those daring to set foot as benchmark administrators, the mountainous startup costs—ranging from crafting financial market indexes to establishing complex systems—can be daunting. Imagine trying to enter a fortified castle with high walls and a deep moat; it’s a risky endeavor that few dare to undertake.
