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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