Global Index Revenues Jump 13.4% To $3.5 Billion In 2018 On Strength In Asset-Based Fees, ESG And Factor Sectors See Strong Growth

LONDON and NEW YORK, April 30, 2019 /PRNewswire/ -- Global index revenue increased 13.4% in 2018, totaling a record $3.5 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 FTSE Russell, S&P Dow Jones Indices, MSCI, Nasdaq, STOXX, Bloomberg, Alerian, Intercontinental Exchange, Solactive, Morningstar, CRSP and SIX.

Index industry revenue increased across all segments in 2018, with asset-based fees rising 14.8% to a record $1.7 billion.  Subscription fee revenue grew 8.8% to $1.4 billion in 2018, while other index revenue (non-recurring transaction revenue and revenue from index licensing for use with derivatives, OTC contracts, and structured products) surged 24.6% to $451.3 million.

Key findings in the report include:

• FTSE Russell accounted for the largest share of industry revenue, totaling $842.3 million in 2018.  S&P Dow Jones Indices was the second largest index provider with revenue totaling $837.0, followed by MSCI which recorded $835.5 million in index revenue.  
• Intercontinental Exchange reported the fastest growth in 2018, with revenue surging 119.0% to $41.4 million.  Bloomberg index revenue has seen the greatest growth over the past 5 years, with a 74.4% CAGR since 2013.
• S&P Dow Jones Indices was the largest index provider in the Americas with a regional share of 26.3%, while MSCI was the largest index provider in both EMEA and Asia with a market share of 32.0% and 30.8%, respectively.
• Index providers are embracing the rapidly evolving ESG and Factor index segments, with revenue surging 30.6% and 25.5% in 2018, respectively.

"Resurgent volatility had a mixed impact on index industry revenue in 2018, with periods of declining asset valuations negatively impacting asset-based fees. Declining valuations, however, were offset by surging trading volumes in global derivatives markets which contributed to record licensing fees," said David Tabaka, analyst at Burton-Taylor. "Future industry growth is a foregone conclusion, as the investment industry continues to move toward passive investment products and ESG and Factor indices continue to gain steam," he added.   

Free extracts from the report can be requested by visiting: http://www.burton-taylor.com/research.html and inputting sample code INDEX2019, or the full 97 page Burton-Taylor Index Global Share & Segment Sizing 2018 – Global Market Drivers, Global Market Share 2014-18, Key Competitors, Global Segment Sizing 2014-18 report may be purchased by visiting https://burton-taylor.com/indexreport/ or contacting [email protected], +1 646 201-4152.

About Burton-Taylor International Consulting (www.burton-taylor.com)
Burton-Taylor International Consulting is the recognized leader in information industry market research, strategy and business consulting.  Burton-Taylor Exchange, Risk, Compliance, Media Intelligence, PR and Market Data share figures are seen as industry benchmarks globally. B-T clients include the world's largest information companies and exchange groups, key government organizations and regulatory bodies on multiple continents, the largest advisory firms and private equity and investment companies around the world.

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. 

SOURCE Burton-Taylor International Consulting

Related Links

http://www.burton-taylor.com