Burton Taylor International Consulting, a TP ICAP Group, has released its 2023 report on global share and size of financial market product data/analytics. This report examines product trends with a focus on real-time and trading. Portfolio management and analysis. Pricing, reference and rating data. research; and news products.
Key findings include:
As in recent years, 2022 was no exception for the market data provider, which racked up record revenues of $37,341.9 million. In 2022, Research had the highest year-over-year return of all products and the highest five-year CAGR. Real Time & Trading is by far the largest of the five products. 38.1% of all market data spending is spent on real-time and trading. But strangely, it had the lowest year-on-year return, ranking 4th out of 5 in terms of 5-year CAGR. The Americas remains the region with the highest revenue at 50.8%, up from 49.1% in 2021. Many Asian companies want more support than companies in other regions. They are looking for more support from local vendors. The demand for reference data is partially driven by ESG and the lack of clarity around it. Since the presence or absence of classification criteria is a function of the legal entity, customers are eager to know as much as possible about the legal entity. Demand for data is increasing with clients looking to move their workloads and transaction flows to the cloud to take advantage of the cost savings, scale, and agility that the cloud offers. To enable this movement, market data must be used to power workflows. Clients want to move safely and efficiently while managing risk. Clients are eager to reduce costs and realize efficiencies. The difficult economic outlook may make it difficult to get corporate buy-in. Customers want fewer vendors and want those vendors to become partners. They want end-to-end solutions, and they want to hear how data providers can help them, provide actionable workflows, and map out what the journey will look like. I am thinking of doing so. Larger data providers will be the winners here, as they will be in a better position to work with larger investment firms, which cover more business areas and cover more market segments. Due to strategic partnerships between investment firms and data providers, M&A activity is always possible, especially for smaller and medium-sized companies that complement each other’s business activities.
Source: Burton Taylor International Consulting
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