Market Data Spend: New Heights Amid Delivery Advancements

The financial market landscape has witnessed an extraordinary and consistent growth trajectory over the past decade, culminating in an impressive surge of 4.7% and an unprecedented value of $37.3 billion in 2022.

While real-time trading and data spending have continued their dominance in generating revenue, the increasing demand for Pricing, Reference, and Valuation data has emerged as a pivotal factor driving expenditure. These revelations surfaced in a recently published report from Burton-Taylor International Consulting, an indispensable division of TP ICAP's Data & Analytics arm.

Regions:

As for regional trends, the Americas experienced remarkable growth, with a substantial 8.3% increase in 2022, surpassing the modest 1.8% growth rate observed in Asia. In contrast, the EMEA region witnessed a more moderate rise of 1.0%.

Market data spending in the Americas accounted for an astounding 50.8% of the global total, while EMEA and Asia contributed 31.1% and 18.1%, respectively.

Key Players:

When it comes to prominent industry players, ICE, Bloomberg, Refinitiv, and S&P Global Market Intelligence maintained their dominant positions in the global market data business. Noteworthy among them, S&P Global Market Intelligence exhibited the highest revenue growth in 2022, with Morningstar, Moody's Analytics, and FactSet closely trailing behind.

Delivery & Innovation:

Hadley Weinberger, a Senior Analyst at Burton-Taylor, provided insights into the evolving landscape, emphasising the expanding utilisation of market data beyond trading desks and into middle- and back-office functions. This shift has led investment banks and asset managers to grapple with increasingly inflexible budgets. Weinberger also highlighted the significance of innovative data delivery methods that emerged during previous lockdowns, such as adaptable data feeds and the proliferation of mobile solutions. These advancements have become integral to businesses across various sectors, thus fortifying the market data provider industry.