London and New York, April 15, 2020 – Global spending on financial market data and news continued its decade-long growth streak with revenues jumping 5.6% to a record $32.0 billion in 2019. Although real-time trading and data spending accounted for the largest share of total revenues, strong demand for Pricing, Reference and Valuation data drove spending according to a new report published today by Burton-Taylor International Consulting, part of TP ICAP’s Data & Analytics division.
Growth was consistent across all global regions, with market data spending in the America’s increasing by 5.7% in 2019, just slightly outpacing the 5.6% rate in EMEA while spending in Asia grew by 5.2%. Market data spend in the Americas accounted for 48.2% of the global total, with EMEA and Asia accounting for 33.2% and 18.6% of the total, respectively.
Bloomberg extended its position as the largest global market data vendor, accounting for 32.7% of total spending in 2019, followed by Refintiv and S&P Global Market Intelligence with market shares of 21.4% and 6.0%, respectively. IHS Markit reported the sharpest revenue growth in 2019, followed by Moody’s Analytics and IRESS.
“Robust demand for data to support fixed income market activities was a significant factor driving industry market data revenues, as the global investment community continued to focus resources and attention on the segment,” says Robert Iati, Director at Burton-Taylor. “Strong performance in global interest rate markets drove spending across both the pricing, reference and valuation and portfolio management and analytics areas as end-users enhanced their efforts to fulfill risk and compliance mandates.”
Regulatory reporting obligations was a key driver of rising spend in the Risk & Compliance user segment which reported a 10.5% increase in spending in 2019. Spending to support Investor relations and C-Suite needs also saw strong growth, reporting an increase of 10.0%. Segments reporting lagging demand included both the sales and financial advisor areas, as the growth in passive investment strategies continued to erode the need for real-time market data products and services.
Although the Covid-19 pandemic will create a radically different environment for market data spending in 2020, many of these effects have yet to have a measurable impact on the industry. Burton-Taylor will examine these topics in a series of future research reports.
The 102-page Burton-Taylor Financial Market Data/Analysis Global Share & Segment Sizing 2020 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/financialreport/ or by contacting orders@burton-taylor.com, +1 646 225-6696.
