CME Group and Deutsche Boerse drive global growth on strength in trading, clearing and settlement revenues, Intercontinental Exchange (ICE) remains leading global exchange while CME Group and Deutsche Boerse round out top three, London Stock Exchange Group and Nasdaq saw the strongest revenue gains in Information Services driven by double-digit revenue growth in index businesses
Global exchange revenues increased by 15.5% to $16.9 billion in H118, and are on pace to reach an annual record for 2018, according to a Burton-Taylor International Consulting (a division of TP ICAP’s Data & Analytics group) report published today. Trading, Clearing and Settlement revenues jumped 17.2% in H118 to $10.7 billion, as rising financial market volatility supported sharp increases in global cash and related derivative markets.
Exchange information service revenues (including market data, index and reference data) increased 13.2% in H118, as exchange index business revenues saw rapid growth. Revenues in the listings and issuer services segment increased by 6.8% in H118, with market technology and access revenues rising by 6.6%.
Other key findings include:
- Intercontinental Exchange the largest exchange, held its position with total revenue of $2.47 billion, accounting for 14.6% of total industry revenues in the period.
- CME Group was second with $1.85 billion in revenues, up 17.0% from H117. Deutsche Boerse placed third with $1.35 billion in revenues, an increase of 23.5%. Deutsche Boerse was the largest exchange in the EMEA region accounting for 21.9% of the region’s revenues in 2017, followed by the LSE Group with 16.1% of the total.
- B3 reported the fastest revenue growth in H118, with revenue increasing by 39.3% to $692.0m. Cboe Global Markets reported revenue growth of 33.0% in H118, largely due to its 2017 merger with BATS Global Markets.
- In Asia, Hong Kong Exchanges and Clearing saw a 31.0% increase in revenues in H118 to $1,045.5m, while Japan Stock Exchange reported a 17.1% revenue increase.
“Global exchange revenues are on pace to reach record levels in 2018, as rising market volatility supported sharp growth in exchange trading, clearing and settlement businesses in the first half of 2018. The current trading environment bodes well for these revenues for the remainder of the year, as rising interest rates and geopolitical uncertainty support renewed trading activity.” says Andy Nybo, Director at Burton-Taylor. “Exchanges are also beginning to enjoy success from diversification strategies, as non-transactional revenues are contributing to steady gains.”
Burton-Taylor publishes semi-annual reports covering the global exchange industry, analyzing factors influencing developments across multiple business segments. Free extracts from the report can be accessed by visiting: https://burton-taylor.com/research.html with the sample code EXCHANGE2018H1, or you can purchase the full 41 page Burton-Taylor Exchange Global Share & Segment Sizing 2018-H1 report by visiting https://burton-taylor.com/exchange-global-share-segment-sizing-2018-h1/ or by contacting firstname.lastname@example.org, +1 646 201-4152.
Douglas B Taylor, email@example.com, +1 646 201-4152
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.