Global exchange revenues totalled a record $28.3 billion in 2016, rising 6.83% as strong revenue gains in exchange market data businesses drove industry growth according to Burton-Taylor International Consulting’s (part of TP ICAP’s Data & Analytics division) latest report published today. Industry revenues were driven by a 29.2% increase in exchange market data businesses, with the segment reporting record revenues of $5.4 billion in 2016.  

Other key findings include:

• Intercontinental Exchange accounted for 15.9% of total industry revenues, with 2016 revenue reaching $4.5 billion, up 34.78% from 2015 primarily a result of an 127.1% surge in market data revenues.
• CME Group remained the next largest exchange in 2016, accounting for 12.7% of total industry revenues, supported by an industry leading 9.1% growth in trading revenues.
• Deutsche Boerse was the largest exchange in the EMEA region accounting for 25.1% of the region’s revenues, followed by the LSE Group with 16.8% of the total.
• Hong Kong Exchange Group was the largest exchange in Asia with a market share of 15.8%, while Japan Stock Exchange was second with a share of 13.6%.
• The exchange industry continues to enjoy enviable operating margins, with our analysis indicating average operating margins of 51.63% in 2016. The Australian Stock Exchange generated the highest margin at 71.90% for calendar year 2016, followed by CME Group at 66.15%.

In terms of business segments, the report found:

• Trading, Clearing and Settlement revenues remained the largest business segment, generating $18.1 billion in industry revenues and accounting for 63.4% of all exchange revenues.
• Market Data & Index revenues have surged in recent years, representing the second largest industry, accounting for 19.18% of total global exchange revenues. Exchange market data revenues have grown at a CAGR of 11.99% since 2011.
• Listing and issuer service revenues stagnated as the weak IPO environment resulted in a 1.29% increase in revenues to $2.3 billion. Deutsche Boerse and the Japan Exchange Group bucked the trend, reporting revenue increases of 7.75% and 6.98%, respectively.
• Market Technology and Access revenues totaled $1.5 billion in 2016, rebounding 4.97% after two years of revenue declines. Nasdaq led the segment in terms of both total revenues and YoY growth, reporting an increase in revenues of 11.8% to $541 million.

“The global exchange industry continues to undergo a steady transformation, as exchanges evolve their models to diversify away from a dependency on transactional businesses. The combination of weak trading volumes and emerging competition is forcing incumbent exchanges to dramatically expand their focus on new business segments,” says Andy Nybo, Director at Burton-Taylor. “Market data and index businesses are the current target of these expansion efforts but exchanges are constantly searching for new opportunities to expand their offerings, especially as new competition threatens to erode existing operating margins and profitability.”

Free extracts from the report can be accessed by visiting: http://www.burton-taylor.com/research with the sample code EXCHANGE2017, or you can purchase the full 89 page Burton-Taylor Exchange Global Share & Segment Sizing 2017 - Key Competitors, Global Market Share 2017, Global Segment Sizing 2017, Global Market Trending 2012-16, Global Segment Trending 2012-16 report by visiting https://burton-taylor.com/exchangereport/ or by contacting orders@burton-taylor.com, +1 646 201-4152.

London, June 28, 2017: TP ICAP, the world’s largest interdealer broker, today announces a number of changes to its senior management team.

David Casterton has been appointed as Vice Chairman of ICAP with immediate effect.

This is a new senior role within the TP ICAP group, reporting directly to John Phizackerley, CEO of TP ICAP. As Vice-Chairman of ICAP, David will work to support the regional and global product and function heads within TP ICAP and will continue to sit on the group’s Global Executive Committee (GEC).

David is now TP ICAP’s most senior representative of the ICAP brand globally. He will relinquish his role as CEO of Global Broking for ICAP, but will now have responsibility for a broad array of advisory and strategic leadership functions, including a range of internal and external mandates relating to the ICAP brand.

Nicolas Breteau will now assume sole responsibility for TP ICAP Global Broking. The regional heads of Global Broking will each report to Nicolas. All four global business lines now report to a single leader, further streamlining of TP ICAP’s overall management structure.

Finally, Nick Deflora will step down from his role as CEO ICAP Americas and Deputy CEO TP ICAP Americas at the end of December. John Abularrage will assume sole leadership for the Region on January 1, continuing as CEO for TP ICAP for the Americas region, and overseeing Global Broking for both brands.

Commenting on the changes, John Phizackerley, CEO of TP ICAP said:

“I am looking forward to working even more closely with David who, having spent nine years as part of ICAP’s Global Executive Management Group, has shown a deep global knowledge in the business and the markets in which it operates. He is the ideal person to ensure that the ICAP brand continues to have a persuasive advocate and strong voice among the leadership of the firm. His experience and input will continue to be invaluable to me and to TP ICAP as a whole.”

“I am very pleased that Nicolas is taking responsibility for Global Broking across both Tullett Prebon and ICAP. He is an experienced and proven leader with an extensive track record across our industry.”

“I’d also like to thank Nick for his outstanding contribution to ICAP, and in the last few months, to TP ICAP. His deep industry and client knowledge will be sorely missed, as will his wit and can-do attitude. Nick's commitment to stay on to deliver a smooth transition over the rest of the year is typical of his professionalism and commitment to the firm. I look forward to working with Nick and John Abularrage over the next few months to ensure this transition is as seamless as possible.”

Tullett Prebon, ICAP and their associated brands will continue to operate separately and they will continue to compete. There is no change to the regional management structure as a result of today’s announcement.

TP ICAP, the world’s largest interdealer broker, has invested in FinTech start-up LiquidityChain, a new web-based application which has been created to unlock liquidity in the global credit markets.

The application enables users to be connected using a dark pool, non-execution platform, which includes an alert system that highlights potential trading opportunities. When trading interests are aligned, parties can connect through an experienced broker from Mirexa Capital, part of TP ICAP’s Institutional Services division, to negotiate and execute a trade.

LiquidityChain utilises the hybrid broking model adopted across all of TP ICAP’s business brands, which also include ICAP and Tullett Prebon. The hybrid model combines the market experience and relationships provided by voice brokers with innovative electronic solutions.

A key aspect of LiquidityChain is anonymity both pre and post trade.

David Perkins, Global Head of Electronic Broking, TP ICAP, said: “There have been numerous factors impacting bond market liquidity in recent years, including regulation, the low interest rate environment and balance sheet constraints. A number of technology and trading platforms have tried to solve these issues, yet liquidity still remains a problem in the market. That is why LiquidityChain is so important; it combines smart technology with human expertise. The early interest in the service has been incredibly high.”

Sam Ruiz, CEO of TP ICAP’s Institutional Services division, said: “The launch of LiquidityChain is an exciting development and is a further sign of the growing momentum within our Institutional Services division, which has a proven track record when it comes to serving a sophisticated, varied and growing client base.”

Richard Smith, Chief Executive, LiquidityChain, said: “Partnering with TP ICAP, both as an investor and provider of trade execution services, is a great move for us and we are delighted to welcome them on board. Their investment and expertise will be invaluable as we continue to help users in the credit markets looking for additional liquidity.”

For further information, visit www.liquiditychain.com

TP ICAP, the world’s largest interdealer broker, has agreed a £270m bulk annuity for its defined benefit pension scheme with Rothesay Life.

Following a successful period of investment, both TP ICAP and the Trustees of the Tullett Prebon Pension Scheme have moved to protect the retirement income of its members.  

A bulk annuity is an insurance policy through which a pension scheme secures payments to its members in exchange for paying a premium to the insurer. Rothesay Life, which is one of the leading life insurers specialising in providing de-risking solutions to UK defined benefit pension schemes, was chosen following a competitive process. 

Today’s announcement is the latest step in strengthening TP ICAP’s balance sheet since December 30, 2016 when it completed the acquisition of ICAP’s Global Broking and Information Services Business. In January, TP ICAP successfully issued £500m in debt to refinance the banking facility used to complete the acquisition.  

Andrew Baddeley, Chief Financial Officer, TP ICAP, said: “I’m delighted to have been able to help the Trustees secure a deal that not only de-risks the group’s balance sheet, but also protects the long-term retirement savings of our Pension Scheme’s members. This is a clear sign that TP ICAP continues to move forward with its strategy of delivering value."  

Clive Gilchrist, BESTrustees and Chairman of the Trustees of the Tullett Prebon Pension Scheme, said: “The Trustees’ first priority was to secure the future security of our members’ benefits and we are pleased to have done so from a position of considerable strength, given the Scheme’s strong funding position. Following a comprehensive review of insurance providers, the Trustees chose Rothesay Life on a combination of product structure, price certainty and the long-term security it brings as a low risk regulated insurer.“  

Bloomberg revenue grew, but terminal users shrank for second time in history; S&P Global companies dominated performance; Data feed products led growth; Risk & Compliance users provided strongest demand.

London, New York and Osprey, Florida, March 28, 2017 -- Spend on market data, analysis and news has topped USD$27 billion for the first time according to Burton-Taylor International Consulting’s (part of the TP ICAP group) latest report published today. The findings show a 3.45% increase in global spend for financial information last year, reaching USD$27.48 billion. 

Other key findings include:

• Bloomberg accounted for 33.40% of market share as a result of growth in its data feed and other non-terminal business. At the same time, terminal counts shrank for only the second time in company history.

• Thomson Reuters market share contracted to 23.14% from 24.24%, although revenue was flat on a constant currency basis and the company showed positive net sales in each quarter of 2016.

• S&P Global Market Intelligence grew the fastest in terms of year-on-year revenue (21.85%), half of which due to acquisition.

• Platts (11.14%), S&P Global Market Intelligence (10.91%), Moody’s Analytics (10.19%) and FactSet (8.72%) delivered the highest five-year compound annual growth rates (CAGR) among market data/analysis or news vendors with at least USD500 million in global revenue.

In terms of customer demand, the report found:

• Risk & Compliance users and Research Analysts were the fastest growing customer groups in 2016. Over the past five years the greatest increase in user numbers comes from Risk & Compliance and Investment Bankers/Corporate Financiers.

• Pricing, Reference & Valuation products were in highest demand, growing an average of 8.51% per year over the five years.

• The report also indicates that demand increased sharply in the Americas and Asia, but shrank in Europe, Middle East & Africa (EMEA).

“The industry showed steady overall growth in 2016 and, in spite of rather pessimistic forecasts from market participants surveyed last year, performed surprisingly well in the Americas and Asia,” says Douglas B. Taylor, founder & Managing Director of Burton-Taylor. “Although EMEA held the market back last year, MiFID II requirements and the tight regulatory environment should drive spend in all regions in 2017.” 

London

Burton-Taylor International Consulting, a division of TP ICAP’s data & analytics group and a leading provider of market research, analytics and business consulting, has appointed Andy Nybo as Director of its Exchange Vertical research practice.

In heading up the exchange and transaction venue research division, Andy will be building out Burton-Taylor’s comprehensive analysis of current and historical exchange share, demand segmentation and demographics, globally and regionally, to a deeper and more granular level than ever before.

Andy joins the company from TABB Group where he was a Managing Director, having joined the group over a decade ago. He brings to the role over 30 years of experience in marketing, research and technology applications in the global capital markets. Andy’s previous roles have also included Head of Marketing and Communications at MarketAxess Corporation, Senior Analyst with Tower Group and Director of Research at The Bond Market Association.

Douglas B. Taylor, founder and Managing Director of Burton-Taylor, said: “I’m thrilled to have Andy join the team. Andy has an outstanding reputation in the industry and is deeply respected for his integrity and intelligence. His rich history of working in transaction orientated businesses and the exchange environment means we are now equipped to deliver a more informed and granular level of insight that will position our clients to make much better-informed investment decisions.”

Andy added: “Douglas and the team at Burton-Taylor are renowned for their market-leading, independent research and I’m thrilled to be joining them. Exchanges continue to heavily invest in their market data businesses and are increasingly competing directly with incumbent market data providers. The exchange vertical will be critical for Burton-Taylor as it further expands its coverage across the market data industry and I look forward to contributing to this growth.”

Based in Charleston, South Carolina, Andy will report directly to Douglas B. Taylor. Andy’s appointment is the first of multiple new hires which Burton-Taylor will be making in the near- to mid-term.

Earlier this year TP ICAP’s data & analytics division (TP ICAP), the provider of independent real-time price information from the global OTC financial and commodity markets, acquired some of Burton-Taylor’s assets.

• Deal adds new business line in benchmark market reports
• First transaction of its type since creation of TP ICAP

TP ICAP’s data & analytics division (TP ICAP), the provider of independent real-time price information from the global OTC financial and commodity markets, has acquired certain assets of market research, analytics and business consulting firm Burton-Taylor International Consulting LLC (Burton-Taylor).

The transaction, which represents TP ICAP’s first asset acquisition, complements its growing data and analytics division and addresses a growing demand from clients for more granular, in-depth research within new and existing sectors.

Burton-Taylor is a globally recognised leader in providing unique data and insight across key industries, including financial services, media and software. Its range of in-depth reports cover financial market data, risk, exchange services, media intelligence and public relations, and have have become trusted benchmarks in these markets. With the acquisition of the Burton-Taylor assets and the introduction of the Burton-Taylor business line, TP ICAP plans to further increase the depth of data it delivers to clients and rapidly expand its services into new sectors, making Data & Analytics a key part of TP ICAP’s ongoing growth story.

John Phizackerley, Chief Executive Officer, TP ICAP commented: “We have ambitious, strategic growth plans for TP ICAP. This transaction marks the first stage in those plans, which will be focused on delivering an industry-leading and world-class service to our clients through impartial guidance, robust technology and a unique depth of market insight. To be successful in the data business, it is critical to have quality, independent, position-neutral content and that is precisely what a combination of the Burton-Taylor assets and our data and analytics division represent”

Douglas B. Taylor, Founder and Managing Partner of Burton-Taylor, added: “I’m thrilled to join the TP ICAP Group, and to gain access to the additional expertise, resources and investment that will enable the Burton-Taylor division to offer clients more insights more frequently and in even greater detail. TP ICAP shares my core values and together we will remain committed to the production of market-leading, independent research that equips our customers to make better, more informed decisions on key issues such as mergers, acquisitions and other strategic investments.”

Frank Desmond, CEO at TP ICAP’s data and analytics division, further added: “This transaction further expands our global data and analytics division, which already includes Tullett Prebon Information, ICAP Information Services and PVM Data Services, covering real-time price information from the wholesale inter-dealer brokered financial markets. Doug’s high profile, sharp insights and strong business leadership will be an asset to our team. Together, we will enhance the range of Doug’s services, providing clients with valuable insights to inform their decision making and business planning.”

TP ICAP, a global firm of professional intermediaries and the world’s largest interdealer broker, today announces that it has appointed Iain Plunkett to the role of Chief Operating Officer (“COO”). Iain will also be a member of TP ICAP’s Global Executive Committee.

Since September 2015, Iain has been COO at Aberdeen Asset Management, having joined from Barclays where he was Head of Operations and Technology Transformation and Head of Global Enterprise Architecture. Prior to this he spent over 15 years in a number of roles at UBS, where his final position was as Chief Information Officer (“CIO”) for the Global Investment Bank and Corporate Centre, directly reporting to both the CEO of the Investment Bank and the Group COO.

Iain will join TP ICAP in the second quarter 2017.

Commenting on Iain’s appointment, John Phizackerley, Chief Executive of TP ICAP, said:

“I am delighted to welcome Iain to TP ICAP as Chief Operating Officer. His experience in capital markets, and particularly in change and transformation projects, make him ideally suited to join our team. He will be integral to executing our integration programme over the next three years, and we are looking forward to working with him.”

Enquiries:

TP ICAP:

Alexandra Wick Marketing & Communications Director

alexandra.wick@tpicap.com

+44 (0) 20 7200 7579

Brunswick:

Brian Buckley / Eilis Murphy

tpicap@brunswickgroup.com

+44 (0) 20 7404 5959