Aquis Exchange saw net revenues jump 12% year-on-year in 2023, with profits also up 16%. Aquis CFO Richard Fisher spoke exclusively to BEST EXECUTION on the future of the firm’s data revenues and market share, and the impact of new proprietary trading rules that came into effect in November 2023.
Full year revenues hit £22.6 million, with profit before tax seeing an increase of 16% to £5.2 million. The overall pan-European market share for December 2023 was 4.97%, up from 4.76% in November and 4.58% in October 2023; while the January 2024 average to date is 5.21%. All four Aquis divisions increased revenues during the period and the firm increased market share following the change to proprietary trading rules in November 2023.
Speaking to BEST EXECUTION, chief financial officer (CFO) Richard Fisher explained why the prop trading rule change has not (yet) resulted in a significant leap in market share.
“Post the rule change, management was not expecting an immediate shift in market share – we believe this will change over time as members recalibrate their trading models and also as more data becomes available as to the improved speed of execution. The increases in market share and other initial indicators are in line with management’s expectations for the potential impact of the rule change,” Fisher told BEST EXECUTION.
Fisher said the firm is not currently disclosing any more detail on trading volumes either, given the relatively short data period and the impact of the December holiday period on overall volumes.
“Following the full year results on 21 March 2024, management is intending to provide more detailed analysis on the impact seen to date. Management in the trading update has noted the overall increase in market share each month since the rule change with Jan YTD over 5.2%.”
Aquis Data increased revenue by more than 20% from the sale of Aquis Markets and Aquis Stock Exchange data to non-member market participants. Although the data business still leads the way, figures reveal it saw a 34% jump in H1 2023, but a 20% jump full year. Fisher explained that the relative movement between periods reflects the timing of previous price increase announcements.
“Management announced price rises again in September 2023 which will increase data revenues from 1 January 2024 and there remains the scope to continue to attract new licences,” Fisher said.
On which area the firm expects to outperform or perform best, Fisher said the focus is on what the advent of the consolidated tape will mean for Aquis data revenues. The firm said it expects “significant benefit” from the advent of EU and UK consolidated tapes.
“We are pleased with the strong performance of all four divisions, with near-term areas of focus on continued growth in market share and expansion in the population of technology contracts. Medium term we remain excited about the potential for what the advent of the consolidated tape would mean for Aquis data revenues.”
“The Aquis Stock Exchange continues to thrive, delivering the most IPOs of any UK growth exchange for the second year running, and we look forward to continuing to welcome an increasing number of issuers to the markets as conditions improve,” Fisher said.
Alasdair Haynes, CEO, Aquis Exchange, said: “In a year marked by uncertainty and difficult market conditions, I am really pleased to report another year of double-digit revenue growth for Aquis Exchange, alongside many successful strategic developments for the Group for which we expect to see the benefits in both near and long term. We are well positioned for the future and look forward to delivering throughout 2024 and beyond.”
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