The Financial Conduct Authority is to launch two market studies to investigate access and competition in the wholesale data market.

It has concerns that limited competition in the markets for benchmarks, indices, credit ratings and trading data may increase costs for investors.

The first market study will look into concerns that complex contracts for benchmarks and indices prevent switching to cheaper, better quality or more innovative alternative providers.

This study will begin this summer.

The second study will assess whether high charges for access to credit ratings data is adding costs to investors and limiting new market entrants. This study will begin before the end of the year.

Sheldon Mills, executive director, consumers and competition at the FCA, said: “Access to wholesale data is really important for those who want to make investment decisions. Without it, they lack the information they need to make properly informed choices.

“Our Call for Input and planned market studies are intended to ensure that competition is working well, that information is available to market participants that want it, and that innovation is keeping up with market developments.”

The FCA said it will also gather further information on competition in the market for wholesale trading data.

It has concerns that a lack of competition could affect the quality of wholesale data and mean increased costs for investors, including pension savers.