Global exchange revenues totalled a record $28.3 billion in 2016, with
exchange data fees making up almost a third of global revenues, according to new research.
A report from Burton-Taylor, an international consultancy, highlighted industry revenues were driven by a 29.2% increase in exchange
market data businesses, with the segment reporting record revenues of
$5.4 billion last year.
Intercontinental Exchange (ICE) accounted for almost 16% of total
industry revenues, as its market data revenues reached $2.4 billion,
surpassing revenues made from its traditional trading and clearing
The report highlighted how market data and index revenues now
represent the second largest segment in the industry, accounting for
around 20% of global exchange revenues.
“The combination of weak trading volumes and emerging competi-
tion is forcing incumbent exchanges to dramatically expand their focus
on new business segments,” said Andy Nybo, director at Burton-Taylor.
“Market data and index businesses are the current target of these
expansion efforts but exchanges are constantly searching for new
opportunities to expand their offerings, especially as new competition
threatens to erode existing operating margins and profitability.”
Exchanges have been frequently criticised from both banks and buy-
side firms alike for their monopolistic dominance on market data costs
by ramping up data fees, as well as introducing complex and strict new
data licensing measures.
Data and index fees brought in $5.4 billion globally
last year, as exchanges look to move away from de-
pending on transactional businesses.
Exchange data made up a third of
revenues in 2016
TRADING VENUES Deutsche Bank plays ‘catch up’
with investment in trading tech
Deutsche Bank has said the
investment bank needs to
‘catch up’ in terms of investing
in technology for its equities
sales and trading business.
Chief executive, John Cryan, told
investors it recently changed the
focus of its equities business
after being ‘hamstrung’ by the
impact of litigation last year.
Nasdaq acquires market
Nasdaq has acquired market
surveillance and Reg Tech firm
Sybenetix. The firm provides
a combination of behavioural
analytics and cognitive comput-
ing to tackle market surveillance
in asset management firms. It
will be added to Nasdaq’s risk
and surveillance business to
provide improved technology
and expertise to the buy-side.
Deutsche Boerse leads $5m
investment in Reg Tech firm
Deutsche Boerse and venture
capital firm Illuminate Finan-
cial Management have co-led
a $5 million funding round for
Reg Tek.Solutions. Launched
earlier this year and based in
New York, the company is a
specialist provider of regula-
tory compliance software. The
investment will be used to scale
operations ahead of MiFID II.