Market data services are an increasing portion of exchanges' revenues, currently comprising 19% of exchanges' revenue mix, on average.
Boston, MA, May 24, 2010 – A new report from Aite Group predicts growth in the data solutions provided directly from exchanges, and highlights the drivers behind increasing demand. Based on in-depth Aite Group surveys of four exchanges (NYSE Euronext, NASDAQ OMX, Tokyo Stock Exchange, and Deutsche Börse), the report provides insight into what customers should expect from exchanges’ current and future data product offerings, and profiles the offerings of surveyed exchanges.
As global markets recover from the credit crisis, demand for market data products is growing. Exchanges have begun to evolve their business models, seeking to diversify their revenue streams while leveraging assets available to them. Until recently, most major exchanges would have cited trading activity as their primary source of revenue, followed by listings (a distant second) and market data. Today, market data services have surpassed listings to comprise roughly 19% of global exchange revenues.
"Aite Group expects this trend to continue, as almost every exchange we spoke with has fully committed to the data business for the long haul,” says Fritz McCormick, senior analyst with Aite Group and co-author of this report. “Market data groups are proven profit centers for the exchanges, and each has a vision for the future, with nuanced growth plans, support for additional direct and intermediary sales, increasing product breadth, and more active relationships with their clients.”
This 32-page Impact Report contains eight figures and 15 tables. Clients of Aite Group's Institutional Securities & Investments service can download the report.