Some asset managers are being charged 26 times more than their peers for index data, according to recent research.
The report from London-based Substantive Research also revealed that some firms are paying six times more for both ratings data and ESG data.
The findings come at a time when regulators are investigating the affordability of market data. Earlier this month, the UK’s Financial Conduct Authority launched a study into the wholesale data market over concerns of a lack of competition and high costs.
Substantive’s report is a follow up to an initial study in October 2022 that revealed some firms were paying 13 times more than others for comparable services but this update, which saw a large number of firms added to the survey, shows the issue is even more concerning.
“We were always curious as to how a more comprehensive dataset would influence our core conclusions,” said Mike Carrodus, CEO of Substantive Research. “As more and more firms joined the project it became clear to us that we had only seen the tip of the iceberg.”
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