Global Spend on Market Data, News Tops $28B
It’s all about the data, right?
The financial markets’ collective carnivorous appetite for all kinds of data – traditional, alt, whatever, has pushed spend up to register the strongest growth levels since 2011, according to a new report from Burton-Taylor. The report said that spending on financial market data/analysis and news set new highs in 2017, while showing the greatest year-on-year growth since 2011.
“The financial market data/analysis story continues to be one of unending demand for the information and tools necessary to ensure regulatory compliance,” said Douglas B. Taylor, founder & Managing Director of Burton-Taylor. “Moreover, the continued posturing of global exchanges and traditional market data vendors to serve those data demands is causing significant “hand-wringing” around the industry.”
The report found that global spend was up 3.57%, to reach US$28.48 billion, topping the $28 billion mark for the first time ever. On a constant currency basis, the 2017 growth was 3.27%, as FX adjustments benefited the market by about USD$80m.
At 33.22%, Bloomberg increased revenue but slightly decreased market share, as did Thomson Reuters and S&P Global Market Intelligence, while FactSet Research Systems increased share to 4.45%. Of the global players, Moody’s Analytics led year-on-year growth with 19.06%, part of which was due to acquisition.
Risk & Compliance users again were the fastest growing customer groups in 2017 and have now delivered a whopping 9.71% compound annual growth rate (CAGR) over the past five years. Pricing, Reference & Valuation products and Portfolio Management & Analytics products were in highest demand, growing an average of 7.96% and 6.80% per year, respectively, over the same period.
The complete 148 page Burton-Taylor Financial Market Data/Analysis Global Share & Segment Sizing report shows that Moody’s Analytics (11.14%), Platts (9.62%), S&P Global Market Intelligence (9.33%) and FactSet (8.97%) delivered the highest five-year CAGR among market data/analysis or news vendors with at least USD500m in global revenue. The report also indicates that demand increased in all three regions; the Americas, Europe, Middle East & Africa (EMEA), and Asia.
A free download of which includes extracts from the report, and the table of contents, may be requested by visiting: http://www.burton-taylor.com/research.html and inputting research sample code FINMARKET2018.
Traders will continue to exploit any cracks in the system.
Challenges include changing market dynamics and increased regulation, GLMX notes.
Compliance reporting is still largely manual.
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