- U.S. equity exchange revenues are projected to jump 12.9% in 2020.
- Record volumes driving projected 33.6% increase in net transaction revenues.
- Market data revenues and listing segments projected to see small increases.
U.S. exchanges are expected to see record equity-related revenues in 2020 as surging share volumes are supporting strong growth in transaction-based revenues. U.S. equity-related exchange revenues are projected to increase 12.9% to a record $2.2 billion in 2020, according to a new research study published today by Burton-Taylor International Consulting, part of TP ICAP's Data & Analytics division. The report provides a comprehensive review of existing U.S. equity exchanges and analyzes the prospects for new equity exchange launches from MEMX, MIAX PEARL Equities, Long Term Stock Exchange, and the Dream Exchange.
Key findings in the report include:
- Total U.S. exchange equity-related revenues from trading, market data and listing services are projected to total $2.2 billion in 2020, a 12.9% increase from $2.0 billion in 2019.
- Net transaction fee revenues are projected to total $906.0 million in 2020, an increase of 33.6% from the $677.9 million total in 2019.
- U.S. equity exchange market data revenues from proprietary products and SIP shared tape revenues are projected to total $652.6 million in 2020, a 4.0% increase from 2019, while listing service revenues are projected to remain flat at $660.0 million in 2020.
"The entrant of three new exchanges into the already crowded marketplace will have significant impacts on market structure and exchange economics," said Andy Nybo, managing director at Burton-Taylor. "Although incumbent exchanges are well-positioned to fend off competitive threats posed by these new entrants, the new exchanges will have a considerable impact on equity market structure resulting in shifting market shares, greater structural complexity, and changes in industry governance practices," he added.
