S&P Dow Jones Indices accounted for the largest share of global index revenues; Strong growth at MSCI and FTSE Russell supported industry revenue; Rising assets under management in ETFs drove a 23.1% surge in asset-based fees; Demand for custom index services resulted in an 15.7% jump in subscription revenues
Global index revenues totaled a record $2.7 billion in 2017, increasing by 18.8%, according to a benchmark study published by Burton-Taylor International Consulting, part of TP ICAP’s Data & Analytics division. The new study provides a comprehensive analysis of the index industry with detailed reviews of leading index providers including S&P Dow Jones Indices, MSCI, FTSE Russell, STOXX, Nasdaq, Bloomberg, Solactive, Intercontinental Exchange, CRSP, and Morningstar.
Index industry revenues increased across all business segments in 2017, with asset-based fees surging 23.1% to a record $1.4 billion and accounting for 49.8% of total industry revenues. Subscription fee revenues grew 15.7% to $1.1 billion in 2017, representing 39.9% of the industry total, while other index revenues (including non-recurring transaction revenue and revenue from index licensing for use with derivatives, OTC contracts, and structured products) increased 11.3% to $286.5 million.
Key findings in the study include:
- S&P Dow Jones Indices accounted for the largest share of industry revenues, totaling $733.0 million in 2017 (26.6% of global revenues).
- MSCI was the second largest index provider with revenues totaling $719.0 million in 2017 (26.1% of global revenues).
- FTSE Russell rounded out the top three with index revenues reaching $703.6 million, (25.5% of global revenues).
- Bloomberg index revenues surged 161.6% to $84.3 million, as full-year results from the 2016 acquisition of Barclays Risk Analytics and Index Solutions supported revenue totals.
- S&P Dow Jones Indices was the largest index provider in the Americas with a regional share of 33.8%, while FTSE Russell was second with a 27.2% share. MSCI was the largest index provider in EMEA and Asia.
“Surging assets under management levels in exchange-traded funds and growing demand for custom indexing solutions propelled global index revenue to record levels in 2017,” said David Tabaka, analyst at Burton-Taylor. “While S&P Dow Jones Indices, MSCI and FTSE Russell dominated the index industry and held a combined market share of 78.1% in 2017, consolidation and the emergence of niche providers continues to reshape the landscape,” he added.
Free extracts from the report can be accessed by visiting: https://burton-taylor.com/research.html with the sample code INDEX2018, or you can purchase the full 58 page Burton-Taylor Index Global Share & Segment Sizing 2018 – Global Market Drivers, Global Market Share 2013-17, Key Competitors, Global Segment Sizing 2013-17 report by visiting https://burton-taylor.com/indexreport2018/ 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.