LONDON (Reuters) – A surge in trading and booming demand for information services drove global exchange revenues to a record high in 2017, a report by consultancy Burton Taylor said on Tuesday.
Total global exchange industry revenue rose 8.1 percent in 2017 to $30.744 billion, Burton Taylor, a subsidiary of TP ICAP (TCAPI.L), found.
Intercontinental Exchange (ICE.N) retained the top spot in terms of revenue, followed by CME Group (CME.O).
Deutsche Boerse (DB1Gn.DE) remained third while LSE (LSE.L) edged ahead of Nasdaq (NDAQ.O) to nab the fourth spot with $2.52 billion revenues while Nasdaq managed $2.43 billion.
Margins remained strong across the industry, reporting an average 53.6 percent EBIT (earnings before interest and tax) margin in 2017.
Information services segments saw an average 9.1 percent increase in revenues as exchanges continued to push beyond real-time market data and into index and analytics services.
Rising trading volumes and higher margin interest revenues helped boost revenues in trading, clearing and settlement (TC&S) – the largest industry segment – up 6.4 percent.
CME Group remained the largest exchange for TC&S followed by Deutsche Boerse and Intercontinental Exchange (ICE).
ICE held the biggest market share in the Americas while Deutsche Boerse was the biggest exchange in EMEA. Hong Kong Stock Exchange dominated the Asian market.
In terms of regional market share, the Americas accounted for 38.9 percent of global revenues in 2017 with Europe, the Middle East and Africa (EMEA) accounting for 36.6 percent and Asia 24.5 percent.
Reporting by Helen Reid, editing by Louise Heavens