Financial Market Data Spending Hits $27b in 2016, Driven by Americas, Asia

2016 proved to be an up and down year for markets due to wavering Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term. However, the demand for financial information was on the uptick, as has been the case for the past few years. According to a report published by Burton-Taylor International Consulting, part of TP ICAP group, 2016 saw an increase of 3.45 percent in global spending of financial information, ultimately reaching a figure of $27.48 billion during the year.

In particular, Bloomberg Terminal, a computer software module providing financial market data and other analysis, saw its user base incur a decline in 2016 for just the second time since its inception. At the forefront of the industry for financial information, Bloomberg once again accounted for a sizable portion, solidifying its role as a market leader. This corresponded to a 33.4 percent market share, though its terminal accounts did contract slightly over a year-over-year basis.

Movers and Shakers

Furthermore, Thomson Reuters, another key player in the industry for financial market data, saw its market share decline slightly to 23.1 percent in 2016 from 24.2 percent in the year prior – this decline was pared by positive net sales during each quarter of the fiscal year.

One key mover in this space has been S&P Global Market Intelligence, which had a sizable jump in revenue in 2016, 21.9 percent year-over-year. This growth was buttressed by its acquisitions - 2016 saw the group make a series of moves to help advance its market position. It finished with a market share of 10.9 percent.

Rounding out the other leaders, Platts (11.1 percent), Moody’s Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term (10.1 percent), and FactSet (8.7 percent), all showed positive annual growth, per the report’s findings.

Looking at specific consumer segments, risk and compliance users and research analysts in 2016 were seen as the fastest growing customer groups – this trend was also seen over a five year interval, in which the highest number of new users has continuously come from risk and compliance, investment bankers and corporate financiers.

Additionally, pricing, reference, and valuation products saw the highest levels of consumer demand, growing by average of 8.5 percent per annum over a five-year period. Geographically speaking, there has also been an increasing demand for this data and services in Americas and Asia – conversely, Europe, Middle East and Africa (EMEA) suffered a decline in demand in 2016.

According to Douglas B. Taylor, founder and Managing Director of Burton-Taylor, in a statement on the report and its findings: “The industry showed steady overall growth in 2016 and, in spite of rather pessimistic forecasts from market participants surveyed last year, performed surprisingly well in the Americas and Asia. Although EMEA held the market back last year, MiFID II requirements and the tight regulatory environment should drive spend in all regions in 2017.”