FTSE Russell ranks first in global revenue, followed by S&P and MSCI, Rising assets under management in ETFs drive a 14.8% surge in asset-based fees, 2018 volatility supports strong growth in derivative index license revenues
Global index revenue increased 13.4% in 2018, totaling a record $3.5 billion, according to a new benchmark study published by Burton-Taylor International Consulting (part of TP ICAP’s Data & Analytics division). The study provides a comprehensive analysis of the index industry, with detailed reviews of leading providers including FTSE Russell, S&P Dow Jones Indices, MSCI, Nasdaq, STOXX, Bloomberg, Alerian, Intercontinental Exchange, Solactive, Morningstar, CRSP, and SIX.
Index industry revenue increased across all segments in 2018, with asset-based fees rising 14.8% to a record $1.7 billion. Subscription fee revenue grew 8.8% to $1.4 billion in 2018, while other index revenue (non-recurring transaction revenue and revenue from index licensing for use with derivatives, OTC contracts, and structured products) surged 24.6% to $451.3 million.
Key findings in the report include:
- FTSE Russell accounted for the largest share of industry revenue, totaling $842.3 million in 2018. S&P Dow Jones Indices was the second largest index provider with revenue totaling $837.0, followed by MSCI which recorded $835.5 million in index revenue.
- Intercontinental Exchange reported the fastest growth in 2018, with revenue surging 119.0% to $41.4 million. Bloomberg index revenue has seen the greatest growth over the past 5 years, with a 74.4% CAGR since 2013.
- S&P Dow Jones Indices was the largest index provider in the Americas with a regional share of 26.3%, while MSCI was the largest index provider in both EMEA and Asia with a market share of 32.0% and 30.8%, respectively.
- Index providers are embracing the rapidly evolving ESG and Factor index segments, with revenue surging 30.6% and 25.5% in 2018, respectively.
“Resurgent volatility had a mixed impact on index industry revenue in 2018, with periods of declining asset valuations negatively impacting asset-based fees. Declining valuations, however, were offset by surging trading volumes in global derivatives markets which contributed to record licensing fees,” said David Tabaka, analyst at Burton-Taylor. “Future industry growth is a foregone conclusion, as the investment industry continues to move toward passive investment products and ESG and Factor indices continue to gain steam,” he added.
A free download of which includes extracts from the report, and the table of contents, may be requested by visiting the Burton-Taylor Research Request page and inputting research sample code INDEX2019BT.
The 99 page Burton-Taylor Index Global Share & Segment Sizing 2019 – Global Market Drivers, Global Market Share 2014-18, Global Revenue Mix 2014-18, Key Competitors, Global Index Mix 2014-18 report may be purchased by visiting https://burton-taylor.com/product/indexreport2019/ 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.