Direct Answer
36 SEC filers are classified under the Standard Industrial Classification codes that describe the financial exchanges & data industry, and their latest annual reports show $102.4 billion of combined revenue and a median operating margin of 6.1%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Financial exchanges and data companies run trading venues, clearinghouses and market data and analytics businesses, earning transaction, listing and subscription fees. Data and clearing give recurring revenue, while trading fees follow volumes. The first numbers to compare across companies here are trading and clearing volume, data and analytics subscriptions and annual contract value.
Key Industry Metrics
- Trading and clearing volume: Number of contracts and shares traded and cleared. It follows activity and volatility, and drives transaction fees.
- Data and analytics subscriptions: Annual fees from data, indexes and analytics customers. They provide steady revenue that is less tied to trading, and diversify results.
- Annual contract value: Annualized value of customer agreements. It shows scale and growth of recurring revenue ahead of reported sales.
- Operating margin: Operating income as a share of revenue. High fixed costs and scale give wide margins, and the trend shows cost control.
- Listing revenue: Fees from companies listing securities, including initial and annual fees. It rises with new issues, and annual fees are steady.
Primary Macro Drivers
- Market volatility and issuance: Volatility and new issues lift trading, clearing and listing revenue, so market activity moves transaction-based results.
- Demand for data and analytics: Clients buy more feeds and analytics for models and compliance, adding annual contract value and recurring revenue.
- Regulation: Rules shape how markets trade, clear and report, creating both demand for services and compliance cost.
- Technology and new products: New products and platforms add volume and subscriptions, though development spending weighs on margin.
Major Risks
- Volume declines: Quiet markets reduce trading and clearing revenue while costs stay, hurting operating margin. Watch trading and clearing volume.
- Competition and fee pressure: Rivals cut fees or launch competing venues and data products, lowering revenue per trade. Watch market share and subscription pricing.
- Cyber and outage risk: Outages and breaches stop trading and damage trust. Watch uptime, incident disclosures and technology spending.
- Regulatory change: Changes to market structure, fee rules or data pricing can reduce revenue. Watch regulatory proposals and legal proceedings.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Low |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Financial Exchanges & Data Filers in the SEC Record
36 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 6200, 7374. Their latest fiscal years end between 2024 and 2026, and together they reported $102.4 billion of revenue. Median revenue growth over the prior year was 14.3%. Median operating margin was 6.1% and median net margin 4.8%. Median total liabilities were 59% of total assets, and 23 of 36 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Automatic Data Processing Inc | $20.6 billion | 7.1% | n/a | 19.8% | FY 2025 |
| 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 |
| Workday, Inc. | $9.6 billion | 13.1% | 7.5% | 7.3% | FY 2026 |
| 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 |
| Toast, Inc. | $6.2 billion | 24.1% | 4.7% | 5.6% | FY 2025 |
| Cboe Global Markets, Inc. | $4.7 billion | 15.1% | 31.1% | 23.3% | FY 2025 |
The 8 largest of 36 by revenue. 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 Financial Exchanges & Data 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 Financial Exchanges & Data industry?
Key performance indicators for the Financial Exchanges & Data industry include: Trading and clearing volume, Data and analytics subscriptions, Annual contract value, Operating margin, Listing revenue. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Financial Exchanges & Data industry?
The Financial Exchanges & Data 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 Financial Exchanges & Data industry?
The primary risks for Financial Exchanges & Data companies include: Volume declines, Competition and fee pressure, Cyber and outage risk, Regulatory change. Investors should assess each company's exposure to these factors and its track record of navigating them.