Stock and Commodity Exchanges in the US Industry Market Research Report Now Available from IBISWorld

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Revenue for this industry is determined by the volume of trades executed on the various exchanges in the United States, including the New York Stock Exchange and Nasdaq. When the financial crisis began, investors unleashed a flurry of trades, hoping to cut losses on assets that were rapidly dropping in value. Thus, the Stock and Commodity Exchanges industry not only weathered the financial woes of 2008 and 2009, it benefited from them. The industry is in a state of consolidation and technological change as electronic communication networks and the globalization of large US exchanges alter the face of trading across the globe. Previously high growth will taper off in the coming five years as markets return to stability and new regulation heightens oversight of certain industry products.

IBISWorld Market Research

IBISWorld Market Research

Industry revenue grew due to excessive trading during the financial crisis

Since NYSE Euronext, NASDAQ OMX and CME Group emerged from a wave of consolidation between US and foreign firms in 2007, they have dominated the Stock and Commodity Exchanges industry. “These groups account for the vast majority of all securities, commodities and related contract trading in the United States,” says IBISWorld industry analyst Doug Kelly. "So the Stock and Commodity Exchanges industry plays an essential role in the entire financial system." Industry firms are the intermediaries that provide physical trading floors or electronic marketplaces where buyers and sellers arrange trades in securities, commodities and related contracts. Exchanges help transfer financial assets, real assets and risks between market participants in various locations on differing time frames. In total, the US market structure has 15 registered national securities exchanges, six securities futures exchanges and 87 alternative trading systems. The rest of the industry is comprised of firms that facilitate trading through electronic communication networks or in over-the-counter markets.

Over the past five years, the US Stock and Commodity Exchanges industry revenue grew at a 4.4% average annual rate, including a projected annual increase of 2.0% in 2012 to about $12.8 billion. “Investors selling their investments during the recession to limit their losses actually boosted industry revenue during the 2008 financial crisis,” says Kelly. “However, the severity of losses that market participants suffered caused a contraction in trading activities in 2009.” Industry growth primarily came from the continued globalization of world markets. Investor capital moved more freely, so more money moved into financial markets and trade volumes increased. A primary driver and enabler of this trend was the development of trading technologies that boosted the speed and lowered the cost of trading. These technologies also introduced new asset classes to more investors.

The US Stock and Commodity Exchanges industry will continue to grow in the five-year period to 2017, though more slowly than in the previous five years. Increased trade volumes will come from the creation of global trading platforms; however, revenue and profit growth will slow as competition and regulation increases. In response, global consolidation will increase as exchange groups look to acquire higher-margin derivatives contract trading and clearing businesses. For more information, visit IBISWorld’s Stock and Commodity Exchanges in the US industry report page.

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IBISWorld industry Report Key Topics

This industry is comprised of financial intermediaries that provide physical trading floors or electronic marketplaces where buyers and sellers arrange trades in securities, commodities and related contracts. This report includes discussion of exchanges and alternative trading systems, as well as broker-dealers who match trades of securities in off-exchange transactions. It excludes discussion of the trading of debt securities, currencies, real assets and physical commodities.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit

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Gavin Smith
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