CME remains the most valuable brand among the world’s leading exchanges, improving its brand value by 16% to US$2.1 billion, according to the latest report by Brand Finance, the world’s leading independent brand valuation consultancy.
This substantial increase in brand value is the result of CME’s focus on new areas of opportunity, innovation and diversification including: the renewed popularity of futures contracts; new opportunities embraced in the market, most notably the trading of Bitcoin futures; and their acquisition of Britain’s NEX Group (formerly ICAP) for US$5.5 billion.
David Haigh, CEO of Brand Finance said, “As the markets fluctuate in a direct response to ongoing COVID-19 threats, the industry will need to be braced to future proof the business models of exchanges. With cutting edge technology creating new and exciting avenues of opportunity, we are likely to see this trend undoubtedly accelerate between this year and next.”HKEX disrupts US dominance
US exchanges account for 50% of the ranking, with the exception being HKEX, which is ranked second with a brand value of US$1.5 billion, rising 6%. After leader CME, HKEX is the second fastest-growing exchange brand this year, with NYSE remaining slightly behind in third rank. HKEX’s growth can be attributed to high forecast growth rates, with several Chinese brands looking to float.
HKEX is the owner of the Hong Kong Stock Exchange, the leading market for IPOs. The introduction of electronic IPOs, resulting in the removal of paper transactions, underlines the exchange’s continued reform programme. This initiative has enabled the exchange to reclaim its position as the leading IPO platform as it has increased the focus on technology and biotech companies. HKEX has also eyed the possibility of acquiring more blockchain companies.
Eurex & LSE slide down
The only brand among the top 10 to see its brand value decline significantly was Germany’s Eurex, (down 14% to US$382 million) despite its bid to expand its offering with a broader partnership programme that includes repo and OTC foreign exchange segments. Meanwhile London Stock Exchange, (down 6% to US$ 345million) remains within the top 10 but has slipped from 9th to 10th rank.