Global exchange revenues hit record level
June 12, 2018

Global exchange revenues totalled a record US$30.7 billion in 2017, increasing by 8.1 percent as resurgent trading, clearing and settlement revenue supported industry growth according to Burton-Taylor International Consulting (a division of TP ICAP's Data & Analytics group) in a report published today.

Industry revenues were driven by a 6.4 percent increase in transaction-based revenues, with this segment reporting record revenues of $19.3 billion in 2017.

Industry growth was strong across all business segments, with information services revenues (including market data, index and reference data) rising by 9.1 percent compared with 2016 totals.  

Exchanges continue to focus on building out information products, with acquisitions a key contributor to the segment's growth, adds Burton Taylor. Revenues in the market technology and access segment increased by 8.1 percent, with listings and issuer services rising by 6.2 percent.  

Other key findings include the following.

Intercontinental Exchange accounted for 15.1 percent of total industry revenues, with 2017 revenue reaching $4.6 billion, up 2.9 percent from 2016. 

CME Group remained the next largest exchange in 2017, accounting for 11.9 percent of industry revenues, totaling $3.6 billion.

Deutsche Börse was the largest exchange in the EMEA region accounting for 21.9 percent of the region's revenues in 2017, followed by the London Stock Exchange Group with 16.1 percent of the total.

HKEX was the largest exchange in Asia with a market share of 19.3 percent, while Japan Stock Exchange was second with a share of 13.0 percent.

The exchange industry continues to enjoy enviable operating margins, with our analysis indicating average earnings before interest and taxation operating margins of 53.6 percent. The Australian Stock Exchange generated the highest margin at 71.0 percent for calendar year 2017, followed by HKEX at 65.5 percent.

Says Andy Nybo, Director at Burton-Taylor: "Global economic strength supported renewed growth in the global exchange industry in 2017, as rising transaction-based revenues propelled the industry to record levels. Exchange diversification strategies are beginning to pay off, as revenues from information services and other business activities contributed to industry gains.

"Expanding trading and data capabilities into fixed income and foreign exchange is also supporting industry revenues, especially in Asia and EMEA as exchanges aggressively expand their offerings to support rising demand for exposure to these asset types."





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Global exchange revenues totalled a record US$30.7 billion in 2017, increasing by 8.1 percent as resurgent trading, clearing and settlement revenue supported industry growth according to Burton-Taylor International Consulting (a division of TP ICAP's Data & Analytics group) in a report published today.

Industry revenues were driven by a 6.4 percent increase in transaction-based revenues, with this segment reporting record revenues of $19.3 billion in 2017.

Industry growth was strong across all business segments, with information services revenues (including market data, index and reference data) rising by 9.1 percent compared with 2016 totals.  

Exchanges continue to focus on building out information products, with acquisitions a key contributor to the segment's growth, adds Burton Taylor. Revenues in the market technology and access segment increased by 8.1 percent, with listings and issuer services rising by 6.2 percent.  

Other key findings include the following.

Intercontinental Exchange accounted for 15.1 percent of total industry revenues, with 2017 revenue reaching $4.6 billion, up 2.9 percent from 2016. 

CME Group remained the next largest exchange in 2017, accounting for 11.9 percent of industry revenues, totaling $3.6 billion.

Deutsche Börse was the largest exchange in the EMEA region accounting for 21.9 percent of the region's revenues in 2017, followed by the London Stock Exchange Group with 16.1 percent of the total.

HKEX was the largest exchange in Asia with a market share of 19.3 percent, while Japan Stock Exchange was second with a share of 13.0 percent.

The exchange industry continues to enjoy enviable operating margins, with our analysis indicating average earnings before interest and taxation operating margins of 53.6 percent. The Australian Stock Exchange generated the highest margin at 71.0 percent for calendar year 2017, followed by HKEX at 65.5 percent.

Says Andy Nybo, Director at Burton-Taylor: "Global economic strength supported renewed growth in the global exchange industry in 2017, as rising transaction-based revenues propelled the industry to record levels. Exchange diversification strategies are beginning to pay off, as revenues from information services and other business activities contributed to industry gains.

"Expanding trading and data capabilities into fixed income and foreign exchange is also supporting industry revenues, especially in Asia and EMEA as exchanges aggressively expand their offerings to support rising demand for exposure to these asset types."



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