Exchanges made nearly $30 billion in 2018, but a new report suggests their business could be at risk if they don't innovate in 3 ways

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Exchanges made nearly $30 billion in 2018, but a new report suggests their business could be at risk if they don't innovate in 3 ways
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Opimas' report suggests exchanges risk the double-digit revenue growth they've enjoyed in recent years if they aren't willing to innovate.

NYSE president Stacey Friedman recently told Business Insider one of her key goals was to reduce the friction customers experience with the technology they use to trade.Exchanges generated nearly $30 billion in revenue globally in 2018 and have enjoyed a 12% increase in revenue annually since 2012.

Alternative data, digital assets and improvements in the IPO process are all areas the report suggested exchanges are well-positioned to profit from. Exchanges had another banner year in 2018, with global revenue rising to just shy of $30 billion, according to a recent report by consultancy Opimas. Since 2012, global exchange revenue has risen at an annual rate of 12%. The largest venues also operate on profit margins that average above 60%, with some exchanges exceeding 70%, according to the report.

 

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