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Global Exchange Revenues Hit Record $30.7 Billion In 2017: Surging Transaction And Information Services Revenues Drive Gains According To Burton-Taylor Report

  •  London Stock Exchange Group (LSE) and Hong Kong Exchanges and Clearing (HKEX) drive global revenue growth
  • Intercontinental Exchange remains leading global exchange while CME Group and Deutsche Boerse round out top three
  • Cboe Global Markets and B3 gain global market share through acquisitions strategies

London and New York – Global exchange revenues totaled a record $30.7 billion in 2017, increasing by 8.1% 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% 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% compared with 2016 totals.  Exchanges continue to focus on building out information products, with acquisitions a key contributor to the segment’s growth. Revenues in the market technology and access segment increased by 8.1%, with listings and issuer services rising by 6.2%. There was a 47.6% increase in the other exchange business segment, as interest revenue from exchange clearing house operations surged following a spike in interest rates in 2017.

Other key findings include:

  • Intercontinental Exchange accounted for 15.1% of total industry revenues, with 2017 revenue reaching $4.6 billion, up 2.9% from 2016.
  • CME Group remained the next largest exchange in 2017, accounting for 11.9% of total industry revenues, totaling $3.6 billion in 2017.
  • 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.
  • HKEX was the largest exchange in Asia with a market share of 19.3%, while Japan Stock Exchange was second with a share of 13.0%.
  • The exchange industry continues to enjoy enviable operating margins, with our analysis indicating average EBIT operating margins of 53.6% in 2017. The Australian Stock Exchange generated the highest margin at 71.0% for calendar year 2017, followed by HKEX at 65.5%.

“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,” says Andy Nybo, Director at Burton-Taylor. “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.”