Response to UK FCA Call for Input on Market Data

MFA and AIMA jointly submitted comments in response to the UK Financial Conduct Authority’s “Call for Input: Accessing and using wholesale data.” Our comments discuss concerns surrounding the rising costs of market data, complex licensing agreements, as well as concerns surrounding venues and vendors unbundling/bundling multiple data products forcing firms to pay more for data they previously had access to, or for products they do not need. In addition, the Call for Input requested feedback on the use of alternative data by investment firms. Our comments noted that firms are increasing their use of alternative data in order to better evaluate investment options for their clients; and note a trend in the industry towards using more data and hiring professionals/investing in IT infrastructure to process alternative data sets.