Direct Answer
7 SEC filers are classified under the Standard Industrial Classification code that describes the derivatives exchanges industry, and their latest annual reports show $51.2 billion of combined revenue and a median operating margin of 35.1%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Derivatives exchanges list and clear futures and options and earn fees on each contract traded plus data, clearing and interest income. Volume rises with volatility and hedging needs, and clearing creates sticky positions. The first numbers to compare across companies here are average daily volume, revenue per contract and open interest.
Key Industry Metrics
- Average daily volume: Contracts traded per day. It rises with volatility and hedging demand, so strong readings often come in stressed markets.
- Revenue per contract: Fees earned per contract traded, net of rebates. It shows pricing and mix, since different products carry different fees.
- Open interest: Number of contracts outstanding. It shows positions held over time, and signals whether trading interest is building or fading.
- Clearing and data revenue: Fees from clearing and market data subscriptions. They are steady and less tied to volume, so a higher share stabilizes earnings.
- Operating margin: Operating income as a share of revenue. Scale and fixed costs lift margins in busy periods, and shows efficiency.
Primary Macro Drivers
- Market volatility: Hedging and speculation rise with price swings, so volatility lifts average daily volume and revenue per contract.
- Interest rate and equity trading activity: Futures and options volumes follow rate and equity market activity, shown in average daily volume by product.
- New products: New contracts add volume and clearing fees, so launches affect open interest and revenue.
- Regulation and competition: Rules shape who may trade and clear, so regulation and rival venues influence volume and margins.
Major Risks
- Lower volatility reducing volume: When markets are calm, hedging and trading drop, cutting volume and revenue. Watch average daily volume and revenue per contract.
- Competition from rival venues: Rival exchanges and clearinghouses compete for contracts, which can cut volumes and fees. Watch market share and open interest.
- Regulatory changes: Margin, position limit and clearing rules can add cost or change trading behavior. Watch regulatory proposals and compliance spending.
- Technology outages: Outages stop trading and risk fines and lost clients. Watch uptime disclosures and technology spending.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Medium |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Derivatives Exchanges Filers in the SEC Record
7 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6200. Their latest fiscal years end between 2024 and 2025, and together they reported $51.2 billion of revenue. Median revenue growth over the prior year was 15.1%. Median operating margin was 35.1% and median net margin 23.3%. Median total liabilities were 71% of total assets, and 6 of 7 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Lpl Financial Holdings Inc. | $17.0 billion | 37.2% | n/a | 5.1% | FY 2025 |
| Intercontinental Exchange, Inc. | $12.6 billion | 7.5% | 39.0% | 26.2% | FY 2025 |
| Nasdaq, Inc. | $8.3 billion | 11.6% | 28.2% | 21.6% | FY 2025 |
| Cme Group Inc. | $6.5 billion | 6.4% | 64.9% | 62.5% | FY 2025 |
| Cboe Global Markets, Inc. | $4.7 billion | 15.1% | 31.1% | 23.3% | FY 2025 |
| Tradeweb Markets Inc. | $2.1 billion | 18.9% | 40.7% | 39.6% | FY 2025 |
| Streamex Corp. | $40,000 | 122.2% | -32155.0% | -25825.0% | FY 2024 |
Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Derivatives Exchanges guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Derivatives Exchanges industry?
Key performance indicators for the Derivatives Exchanges industry include: Average daily volume, Revenue per contract, Open interest, Clearing and data revenue, Operating margin. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Derivatives Exchanges industry?
The Derivatives Exchanges industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Derivatives Exchanges industry?
The primary risks for Derivatives Exchanges companies include: Lower volatility reducing volume, Competition from rival venues, Regulatory changes, Technology outages. Investors should assess each company's exposure to these factors and its track record of navigating them.