Global Inter-Dealer Broker Market Data Revenues Increased 9.3% To A Record $309.3 Million In 2020 Driven By FX And Interest Rate Data-new Burton-Taylor Report
- TP ICAP drives a majority of revenue growth in the market, owning the most developed data and analytics division in our study
- The IDBs are at varying stages of data program implementation, taking cues from more developed exchange data programs to aid growth.
- FX and interest rate data account for a majority of revenues, though energy and commodities data is beginning to see strong growth as the market seeks more data driven trade strategies.
LONDON and NEW YORK, Sept. 15, 2021 September 14, 2021 – Few industries have changes more dramatically in the past decade than that of inter-dealer brokers, whose businesses have been severely disrupted by post credit-crisis regulations and electronification. In response to this changing landscape, the IDBs have placed increased emphasis on alternate revenue streams, most notably through the installation of data programs according to two new research reports published today by Burton-Taylor International Consulting, part of TP ICAP's Data & Analytics division, Parameta Solutions.
Key findings include:
- Regulation has upended the traditional business models of IDBs, forcing many once-IDB dominated products onto SEFs and disallowing banks for proprietary trading activities, once big business for IDBs.
- As a result of a new regulatory landscape, mass consolidation has taken place over the past decade, dwindling the market down to four main competitors.
- Pandemic driven budget constraints have driven IDBs to be more creative in data delivery and storage, answering customer calls for decreased cost of ownership.
- Over 85% of total IDB market data spend is allocated to TP ICAP and BGC Partners, the two largest IDBs in the world.
"IDBs have been forced to go beyond their comfort zone in recent years as traditional revenue streams are challenged by macroeconomic factors beyond their control," said Sean Eskildsen, analyst at Burton-Taylor. "Increased focus on market data services is the logical next step for IDBs given the abundance of trade data they possess paired with an OTC market that's hungry for any data it can consume" he added.
Burton-Taylor today announced the publication of two reports covering the inter-dealer broker data and services industry. The Evolution of OTC Data: Analyzing the Role of IDBs in the OTC Data Market report analyzes the evolving role of the IDBs in the current market structure, offering insight into the catalysts of change while providing analysis of the industry moving forward. The IDB Market Data Industry 2021: The Next Frontier in OTC Market Data report analyzes the four major
IDBs of today, offering perspective on differentiating factors ranging from product offerings to technological advancements.
The reports are available for immediate download by Burton-Taylor research members through the research portal. Detailed information on the reports can be found here or the report can be purchased by contacting [email protected], or telephone +1 646 225-6696.
About Burton-Taylor International Consulting (www.burton-taylor.com)
Burton-Taylor International Consulting, part of TP ICAP Group's data & analytics division, Parameta Solutions, 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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