Industry Analysis & Industry Trends
In the UK economy, a few select industries did not endure protracted suffering at the hands of the financial crisis, and the Stock and Commodity Exchanges industry is one of these. The industry's main income stream is fees charged on trades. While the financial crisis caused a mass exodus of investors from financial markets, the outcome was not detrimental to the industry, as shorting of securities and other speculative activities increased trading volumes and demand for market information persisted. However, post financial crisis revenue growth has been weak. As such, IBISWorld estimates that the industry declined 2.6% in the five years through 2012-13 to £2.24 billion. For the year 2012-13, revenue is forecast to expand by 2.6%.. purchase to read more
Industry Report - Industry Investment Chapter
The services that businesses in the Stock & Commodity Exchanges industry provide to the market are highly dependent on technology, communication systems and the internet. For this reason, the industry incurs large capital expenditures through investment made in technology infrastructure and research and development to better that technology to provide a more reliable, accurate and automated service to a global customer base. This heavy reliance on capital in rendering services is seeing labour becoming a less important input for the industry.
The capital investment requirement is determined by the level of depreciation in this industry, estimated to account for 18.4% of industry revenue... purchase to read more