LONDON and NEW YORK, September 15, 2021 September 14, 2021 – Few industries have seen more dramatic changes over the past decade than inter-professional brokers, whose businesses have been severely disrupted by post-credit crisis regulations and electronization. In response to this changing landscape, the IDBs have placed more emphasis on other sources of revenue, including through the installation of data programs according to two new research reports released today by Burton-Taylor International Consulting, which is part of the Data & Analytics division of TP ICAP, Paraméta solutions.
The main findings include:
- The regulations have upended traditional IDB business models, forcing many formerly IDB-dominated products onto FLS and barring banks from proprietary trading activities, once big business for IDBs.
- As a result of a new regulatory landscape, mass consolidation has taken place over the past decade, reducing the market to four main competitors.
- Budget constraints related to the pandemic have prompted IDBs to be more creative in delivering and storing data, answering customer calls for a lower cost of ownership.
- Over 85% of total IDB market data spend is allocated to TP ICAP and BGC Partners, the two largest IDBs in the world.
“The IDBs have been forced out of their comfort zone in recent years as traditional income streams are challenged by macroeconomic factors beyond their control,” said Sean Eskildsen, analyst at Burton-Taylor. “An increased focus on market data services is the next logical step for IDBs given the abundance of business data they have, coupled with an OTC market hungry for all the data it can consume,” he said. he added.
Burton-Taylor today announced the release of two reports covering the inter-professional brokerage data and services industry. The OTC Data Evolution: Analysis of the Role of IDBs in the OTC Data Market report analyzes the evolving role of IDBs in the current market structure, offering insight into catalysts for change while providing analysis for the future of the industry. The IDB Market Data Industry 2021: The Next Frontier in OTC Market Data report analyzes the top four
Today’s IDB, offering a perspective on differentiators ranging from product offerings to technological advancements.
The reports are available for immediate download by Burton-Taylor Research members via the search portal. Detailed information about the reports can be found here or the report can be purchased by contacting [email protected], or call +1 646 225-6696.
About Burton-Taylor International Consulting (www.burton-taylor.com)
Burton-Taylor International Consulting, which is part of TP ICAP the Group’s data & analytics division, Setting Solutions, is the recognized leader in market research, strategy and business consulting in the information sector. Burton-Taylor Exchange, Credit, Risk, Compliance, Media Intelligence, PR, and Market Data figures are considered the industry benchmark globally. For more information, see www.burton-taylor.com.
About TP ICAP (www.tpicap.com)
TP ICAP brings together buyers and sellers in the global financial, energy and commodities markets. It is the largest wholesale market intermediary in the world, with a portfolio of companies that provide brokerage services, data and analysis and market intelligence that customers around the world trust. We operate from offices in 31 countries, supporting award-winning brokers with cutting-edge technology. For more information see www.tpicap.com
SOURCE Burton-Taylor International Consulting