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Global exchange revenues have continued a years-long growth trend, gaining 2.87% for a record $49.15 Billion in 2022, according to a new report published today by Burton-Taylor International Consulting, part of TP ICAP’s Parameta Solutions division. The report also finds diversification strategies are trending towards information services, though trading, clearing, and settlement continue to account for most exchange revenues.
Although markets have been volatile, the exchange segments, with trading, clearing, and settlement, account for even more of the revenue pie than previously. Listing and Issuer Services revenues were stunted, showing little year-on-year growth, while Information Services and Market Technology and Access continue steady growth. This was strengthened by exchanges continuing to diversify their offerings with more content and analytics.
London Stock Exchange had the largest market share, accounting for 18.4% of global exchange revenues. ICE was next with 14.8% as it grows its products and services, and then Chicago Mercantile Exchange had 10.2% as they had several segments with trading record volumes.
Americas is seeing the greatest revenue growth, adding 5.7%, outpacing EMEA at 4.2% and with a slight decline in Asia at 5.9%. EMEA-based exchanges are battling for market share through aggressive M&A campaigns, expanding largely into information services. Americas accounted for 45% of global exchange revenues, while EMEA and Asia account for 37% and 18%, respectively.
Information Services offerings continue to be at the forefront of diversification strategies among global exchanges as firms look to capitalize on the seemingly endless demand for data solutions. Other expansion areas are exchanges partnering with cloud providers to lower the cost of ownership and provide more effective technologies to their customers. Exchanges are looking beyond traditional transaction-based revenue streams towards data offerings, leveraging current infrastructure, and deploying M&A activity to gain a strong foothold in the data space. Expansion in ESG, Sustainability, workflow, and analytics are also a focus of today’s global exchanges.
The 76-page Exchange Global Share & Segment Sizing 2023 report is available for immediate download by Burton-Taylor research members through the website. The report can be purchased by visiting https://tpicap.com/burtontaylor/reports/global-exchange-index or by contacting orders@burton-taylor.com, +1 646 225-6696.
