Insight - PIPs to the Post.

(From Financial Director)

Byline: Peter Bartram.

Has opening up the market improved the cost and quality of regulatory news distribution - announcements such as results, mergers, acquisitions and directors' share dealings? Eighteen months after it started, the answer is a definite maybe.

When the Financial Services Authority first said it planned to approve competitive primary information providers (PIPs), FSA managing director Michael Foot predicted that competition would make "information dissemination cheaper for the market as a whole".

According to Foot, "Listed companies should also benefit from a more transparent and fair pricing structure for their listing needs, and from being able to choose the information provider that can offer the best deal."

The usual benefits of competition were trotted out to justify the new system. "All types of investor will benefit from having instant access to all company announcements," Foot said. Has it happened?

In fact, there were seven entrants at the starting blocks when the competitive market opened in spring last year. But in the year-and-a-half since the new system has been operating, the eager new competitors have made little impact on the London Stock Exchange's market share.