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.”
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About Burton-Taylor International Consulting
Burton-Taylor International Consulting, part of TP ICAP group, is a recognized leader in information industry market research, strategy and business consulting. Burton-Taylor Exchange, Credit, Risk, Compliance, Media Intelligence, PR and Market Data share figures are regarded as industry standard globally. Burton-Taylor clients command an estimated 80% share of global revenue in the Market Data space and include the world’s largest information companies and exchange groups, key government organizations and regulatory bodies on multiple continents, the largest advisory firms serving the industry and more than 30 of the most active private equity and investment companies around the world.
About TP ICAP
TP ICAP brings together buyers and sellers in global financial, energy and commodities markets. It is the world’s largest wholesale market intermediary, with a portfolio of businesses that provide broking services, data & analytics and market intelligence, trusted by clients around the world. We operate from offices in 31 countries, supporting award-winning brokers with market-leading technology. For further information see www.tpicap.com.