EU probe into Thomson Reuters data access 'at critical stage'

The dispute centres around market participants’ access to data. Like other vendors, Thomson Reuters uses short, alphanumeric codes – Reuters Investment Codes (RICs) – that identify financial instruments and their trading locations. Banks, brokers and other financial institutions use them to convert information from Thomson Reuters market data feeds to their own systems.

The European Commission has argued that the availability of up-to-date data at a reasonable cost to participants is critical to a competitive market. Its initial assessment of the case found that restrictions imposed by Thomson Reuters created “substantial barriers” for customers to switch to alternative providers. It can fine companies up to 10 per cent of their annual turnover for breaching competition rules.

The Commission is examining whether customers could be “locked into” working with Thomson Reuters because rewriting software to replace RICs could be lengthy and costly.

“Recently, we have unsuccessfully market-tested a solution offered by Thomson Reuters to facilitate switching,” he said in a speech in Denmark. “We have now reached a critical stage in this investigation. If no effective solution can be agreed upon, then we will have to draw the adequate conclusions.”

“Thomson Reuters has just received feedback from the market test, which it is now analysing," the company said. "While we are undergoing this review, it would be inappropriate to comment. However, Thomson Reuters will continue to co-operate fully with the EU while we are engaged in this process.”

To settle the case, Thomson Reuters in December proposed that it would allow customers to license additional usage rights for RICs and provide them with information to map RICs to rivals’ codes.

Almunia said competitors and investment funds had demanded more concessions. ■