Global Exchange Revenues Hit $30.7 Billion in 2017

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 toBurton-Taylor International Consulting(a division of TP ICAPs 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 segments growth. Revenues in the market technology and access segment increased by 8.1%, with listings and issuer services rising by 6.2%.

Other key findings include:

  • Intercontinental Exchangeaccounted 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 industry revenues, totaling $3.6 billion.

  • Deutsche Boerse was the largest exchange in the EMEA region accounting for 21.9% of the regions 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%, whileJapan Stock Exchangewas 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%. TheAustralian Stock Exchangegenerated 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.

Free extracts from the report can be accessed by visiting: the sample codeEXCHANGE2018