26 Jun 2019 Global Exchange Revenues Surge 10.1% to Record $33.9 Billion in 2018; Trading/Clearing Fees and Information Services Revenues Drive Gains – Burton-Taylor Report
- Cboe Global Markets, CME Group and Hong Kong Exchanges and Clearing (HKEX) drive revenue growth
- Intercontinental Exchange remains leading global exchange, CME Group and Deutsche Boerse round out top three
- Cboe Global Markets, CME and Deutsche Bourse see market share gains as derivatives trading volumes surge
Global exchange revenues totaled a record $33.9b in 2018, rising 10.1% as surging volatility resulted in higher trading, clearing and settlement revenue, according to Burton-Taylor International Consulting (part of TP ICAP group) in a report published today. Industry revenues were driven by a 11.7% increase in transaction-based revenues, with the segment reporting a record of $21.3b.
Exchange diversification efforts into non-transactional business segments continued to support industry growth, with information services revenues (including market data, index and reference data) growing by 9.0% in 2018. Exchanges remain focused on building out information and analytical products, with acquisitions a key contributor to the segment’s growth. Revenues in the market technology and access segment increased by 7.4%, listings and issuer services rose 6.6%.
Other key findings include:
- Revenue-leader Intercontinental Exchange holds a 14.7% industry share, with $5.0b revenue, up 7.4%.
- CME Group saw an 18.2% revenue jump to $4.3b, on strong trading volumes.
- Deutsche Boerse was the largest EMEA exchange accounting for 22.9% of the region’s revenues, followed by the LSE Group.
- HKEX was the largest Asia exchange, with a market share of 21.3%, while Japan Stock Exchange was second with an 13.0% share.
- The exchange industry continues to enjoy enviable operating margins, average EBIT operating margins of 57.6% in 2018. London Stock Exchange generated the highest margin at 74.7% for calendar year 2018.
“Resurgent volatility supported growth in transaction revenues in 2018, especially for exchanges offering derivatives trading and clearing services. The industry is well-positioned to benefit from continued economic uncertainty, especially as the global trade war continues and investor confidence erodes,” says David Tabaka, Analyst at Burton-Taylor. “Exchange efforts to expand their information services offerings are also seeing success, as they focus on providing enhanced analytical capabilities to their clients.”
Free extracts from the report can be accessed by visiting: https://burton-taylor.com/research.html with the sample code EXCHANGE2019, or you can purchase the full 91 page Burton-Taylor Exchange Global Share & Segment Sizing 2019 report by visiting https://burton-taylor.com/exchangereport/ or by contacting firstname.lastname@example.org, +1 646 201-4152.
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