The FCA describes it as ‘an exploratory exercise’ seeking to highlight where competition may be weak or not be working properly in wholesale markets. It is calling for input from industry stakeholders.
The review will focus on competition in wholesale securities and investment markets, including markets and market infrastructure, investment banking, asset management and corporate banking.
The call for inputs will be open until 9th October, with written responses welcome. During this period the FCA also plans to hold round-tables with stakeholders to collect views before taking its decision on whether to target particular areas for in depth study.
“It is vital that wholesale financial markets are efficient, fair and competitive,” said Christopher Woolard, director of policy, risk and research at the FCA. “We are publishing this call for inputs today to seek views and evidence from stakeholders on areas where they think competition may not be working effectively,” he added.
Woolard said effective competition within the wholesale sector can lead to greater institutional efficiency, lower prices, more innovation and improved quality in financial services. “Improvements in competition should contribute to the sustainable development of the financial system, and have positive knock-on effects for retail consumers and real economy businesses,” he added.
