Explosive Growth: Exchanges Report Record $30.7 Billion Revenue in 2017

by David Kimberley
  • Growth in transaction-based revenue and new business lines drove growth for exchanges across the globe
Explosive Growth: Exchanges Report Record $30.7 Billion Revenue in 2017
FM

Global revenues for exchanges reached record highs in 2017 according to a new report by Burton-Taylor International Consulting. The firm, which is owned by TP ICAP, claims that exchanges made over $30 billion in revenue last year.

Intercontinental Exchange (ICE), the owner of NYSE Euronext, was the largest exchange in the world last year. The firm made $4.6 billion in revenue in 2017, a 4.6 percent increase on 2016. This also meant it made 15 percent of the total $30.7 billion in revenue made by exchanges across the globe last year.

In the Europe, the Middle East and Africa (EMEA) region, Deutsche Boerse was the largest exchange. The German company made 21.9 percent of all revenue in the region. The next largest was the LSE Group which accounted for 16.1 percent of total revenue in the EMEA region.

Hong Kong Exchanges and Clearing (HKEx) was the largest exchange operator in Asia. The owner of the Hong Kong Stock Exchange earned 19.3 percent of all exchange revenue in Asia.

Old transactions, new business lines

Growth in revenue for the global exchange industry was driven in part by an increase in transaction-based earnings. These increased to $19.3 billion in 2017, representing a significant 6.4 percent increase on 2016.

The industry has also been expanding, often via acquisitions, into other business areas that further supported growth. For example, revenue from information services, such as providing market data, increased by almost 10 percent in 2017.

Commenting on the new report, Andy Nybo, a director at Burton-Taylor, said: “Global economic strength supported renewed growth in the global exchange industry in 2017, as rising transaction-based revenues propelled the industry to record levels. Exchange diversification strategies are beginning to pay off, as revenues from information services and other business activities contributed to industry gains."

Global revenues for exchanges reached record highs in 2017 according to a new report by Burton-Taylor International Consulting. The firm, which is owned by TP ICAP, claims that exchanges made over $30 billion in revenue last year.

Intercontinental Exchange (ICE), the owner of NYSE Euronext, was the largest exchange in the world last year. The firm made $4.6 billion in revenue in 2017, a 4.6 percent increase on 2016. This also meant it made 15 percent of the total $30.7 billion in revenue made by exchanges across the globe last year.

In the Europe, the Middle East and Africa (EMEA) region, Deutsche Boerse was the largest exchange. The German company made 21.9 percent of all revenue in the region. The next largest was the LSE Group which accounted for 16.1 percent of total revenue in the EMEA region.

Hong Kong Exchanges and Clearing (HKEx) was the largest exchange operator in Asia. The owner of the Hong Kong Stock Exchange earned 19.3 percent of all exchange revenue in Asia.

Old transactions, new business lines

Growth in revenue for the global exchange industry was driven in part by an increase in transaction-based earnings. These increased to $19.3 billion in 2017, representing a significant 6.4 percent increase on 2016.

The industry has also been expanding, often via acquisitions, into other business areas that further supported growth. For example, revenue from information services, such as providing market data, increased by almost 10 percent in 2017.

Commenting on the new report, Andy Nybo, a director at Burton-Taylor, said: “Global economic strength supported renewed growth in the global exchange industry in 2017, as rising transaction-based revenues propelled the industry to record levels. Exchange diversification strategies are beginning to pay off, as revenues from information services and other business activities contributed to industry gains."

About the Author: David Kimberley
David Kimberley
  • 1226 Articles
  • 19 Followers
About the Author: David Kimberley
  • 1226 Articles
  • 19 Followers

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