Global Index Industry Revenues Increase 8.0% To A Record $3.7 Billion In 2019 On Strength In Asset-Based Fees; ESG And Factor Segments Continue To See Strong Gains - New Burton-Taylor Report
-- MSCI leads industry in global revenues, followed by S&P and FTSE Russell
-- Traditional equity index segment accounts for majority of industry revenues
-- ESG and Factor segment revenues see strongest revenue growth
LONDON and NEW YORK, April 29, 2020 /PRNewswire/ -- Global index industry revenues increased 8.0% in 2019, reaching a record $3.7 billion, according to a new benchmark study published by Burton-Taylor International Consulting, part of TP ICAP's Data & Analytics division. The study provides a comprehensive analysis of the index industry, with detailed reviews of leading providers including MSCI, S&P Dow Jones Indices, FTSE Russell, Nasdaq, Qontigo, Bloomberg, Alerian, Intercontinental Exchange, Solactive, Morningstar, CRSP and SIX.
Index industry revenue increased across all segments in 2019, with the fastest growth occurring from index license fees based on assets under management which increased 9.0% to a record $1.9 billion. Subscription fee revenue grew 8.3% to $1.4 billion in 2019, while other index revenue (non-recurring transaction revenue and revenue from index licensing for use with derivatives, OTC contracts, and structured products) increased 3.3% to $457.5 million.
Key findings in the report include:
- MSCI accounted for the greatest market share, accounting for 24.74% of total industry revenues and narrowly edging out S&P Dow Jones Indices which accounted for a market share of 24.66%. FTSE Russell rounded out the top three with a 20.5% market share.
- Solactive reported the fastest growth in 2019, with revenue jumping 21.9% while Bloomberg index revenue has seen the highest growth since 2015 with a CAGR of 72.0%.
- ESG index revenues surged sharply in 2019 rising 31.3% while factor segment revenues increased by 11.4% over 2018 totals.
"A convergence of rising asset valuations, trend towards passive investing strategies and record derivatives trading volumes all supported industry revenues," said David Tabaka, an analyst at Burton-Taylor. "Index providers continued to see strong growth in 2019, with ESG and Factor indices an area that will support rising revenues in 2020 and beyond," he added.
The 97-page Burton-Taylor Index Global Share & Segment Sizing 2019 – Global Market Drivers, Global Market Share 2015-19, Key Competitors, Global Segment Sizing 2015-19 report is available for immediate download by Burton-Taylor research members through the research portal. A detailed information kit for the report can be downloaded here or the report can be purchased by visiting https://burton-taylor.com/indexreport2020/ or by contacting [email protected], +1 646 225-6696.
About Burton-Taylor International Consulting (www.burton-taylor.com)
Burton-Taylor International Consulting, part of TP ICAP group, is the recognized leader in information industry market research, strategy and business consulting. Burton-Taylor Exchange, Credit, Risk, Compliance, Media Intelligence, PR and Market Data share figures are seen as industry benchmark standard globally. For further information see www.burton-taylor.com.
About TP ICAP (www.tpicap.com)
TP ICAP brings together buyers and sellers in global financial, energy and commodities markets. It is the world's largest wholesale market intermediary, with a portfolio of businesses that provide broking services, data & analytics and market intelligence, trusted by clients around the world. We operate from offices in 31 countries, supporting award-winning brokers with market-leading technology. For further information see www.tpicap.com
SOURCE Burton-Taylor International Consulting
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