From National Marketplaces to Global Providers of Financial Infrastructures: Exchanges, Infrastructures and Structural Power in Global Finance

Figures & data

Figure 1. International offices of 20 largest exchanges in 2002. Source: annual reports, financial news.

Figure 2. International offices of 20 largest exchanges in 2018. Source: annual reports, financial news.

Figure 3. The transformation of exchanges, 1980–2018. Source: annual reports, exchange website information, financial news.

Figure 4. Consolidation in global exchange industry and emergence of global exchange groups, 1990–2018. Source: financial news coverage, annual reports.

Table 1. Global exchange groups market share in global stock and derivative markets, 2017.

	GEGs	India	China	Brazil	Russia	Japan	regional players	other	all ex-GEG
Share of global exchange industry revenues (% of total)	∼56%	n/a	n/a	∼5%	n/a	∼4%	∼11%	∼26%	∼44%
Derivatives exchange trading volume (% of total)	45.30%	13.00%	12.20%	7.20%	6.30%	1.50%	4.30%	10.20%	54.70%
Derivatives exchange open interest (% of total)	55.90%	1.80%	2.30%	15.00%	2.20%	1.30%	11.80%	9.60%	44.10%
Derivatives exchanges (n = 53)	6	3	4	1	1	4	5	30	47
Stock exchange market capitalization (% of total)	47.50%	5.10%	10.30%	1.10%	12.40%	0.80%	9.00%	13.80%	52.50%
Stock exchange EOB value of trading (% of total)	54.60%	1.40%	20.20%	0.80%	5.40%	0.20%	8.00%	9.40%	45.40%
Exchange groups (n = 83)	5	2	2	1	1	1	5	67	78

Source: FIA (2017), WFE (2017), Burton-Taylor (2018a).

Figure 5. Revenue development of stock exchanges by business segment, 1998–2017. Source: annual reports.

Table 2. The structural power of exchanges through financial infrastructures.

Infrastructure	Power over whom	Effect
Data		Monopoly power over data, pricing and access:
	Investors	Profit through knowledge monopoly
Indices		Investment-decision/standard-setting power:
	(Passive) investors	Steering capital through index calculation
	Listed companies	Corporate governance
	States	Investor accessibility
Products		Defining/creating investment opportunities:
	Listed companies	More shareholder value orientation
	Investors	Define range of possible investment opportunities
	States	Integration into financial circuits
Trading		Power over trading rules:
	Investors	New incentive structures for (different) investors
	Listed companies	Impatient vs. Patient capital
Post-trade		Power over investibility:
	Investors	Collateral requirements influence asset allocation
	States	Potential impact on refinancing

Figure 6. Deutsche Börse Group business model as integrated infrastructure provider, August 2017. Source: investor presentation.

Figure 7. LSE Group business model as integrated infrastructure provider, December 2017. Source: LSE (2017).

FIA, 2017. FIA global exchange volume dataset. Brussels: Futures Industry Association.

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WFE, 2017. Statistics: monthly report December 2017. London: World Federation of Exchanges.

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Burton-Taylor, 2018a. Exchange global share & segment sizing 2018. Osprey: Burton-Taylor International Consulting/TC-ICAP.

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LSE, 2017. Annual report. London: London Stock Exchange Group.

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