Burton-Taylor International Consulting, part of TP ICAP group, has published its Financial Market Products Data/Analysis Global Share & Sizing 2023 report. The report looks at product trends, focusing on Real Time & Trading; Portfolio Management and Analytics; Pricing, Reference and Valuation Data; Research; and News products.

Key findings include:

• As in years past, 2022 was no different for the market data providers, accumulating a record $37,341.9 million in revenue.
• In 2022, Research led all products with the highest YoY return and the highest 5 Year CAGR.
• Real Time & Trading is by far the largest of the five products. 38.1% of all market data spend is on Real Time & Trading. But oddly enough, it had the smallest YoY return and was 4th out of 5 in its 5 Year CAGR.
• The Americas is still the region with the highest revenue at 50.8%, up from 49.1% in 2021.
  • Many Asian firms want more support than firms from other regions. They are looking for more support from local vendors.
• The demand for reference data is being driven in part by ESG and the lack of clarity around it. Since classification standards or lack thereof are a function of the entities, customers are clamoring to learn as much as possible about the legal entities.
• Demand for data is increased by clients looking to move their workloads and trade flows into the cloud to take advantage of the cost reduction, scale, and agility that the cloud offers. To enable this move, they will need to power those workflows with market data. Clients want the move to be safe and efficient while controlling risk.
  • Clients are eager to realize cost savings and efficiencies.
  • Troubled economic outlook may make it harder for the companies to buy in.
• Clients want fewer vendors and for those vendors to be partners. They demand end to end solutions and want to hear how the data providers can help them, provide actionable workflows, and map what the journey would look like.
• The bigger data providers will be the winners here as they are in more areas of the business and are better positioned to work together with the larger investment firms that are in more market segments.
• Because of the strategic partnerships between the investment firms and data providers, M&A activity is always a possibility, especially for middle tier and lower tier companies which complement each other’s business activities.

Source: Burton-Taylor International Consulting