Overview

Back to the futures: New attitudes toward commodities will boost industry revenue

The Commodity Dealing and Brokerage market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Use of commodities has increased due to strong returns generated by speculators
  • The continued shift toward more scalable electronic trading systems prevented expansion in employment
  • A threat of inflation may cause more people to invest in commodities to hedge against it

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    Industry Analysis & Industry Trends

    Revenue is projected to decrease over the five years to 2016. Consumption of commodities surged post recession, when emerging markets, like China, returned the world economy to growth. Due to rising commodity prices, the volume of traded commodities increased rapidly, boosting industry revenue. However, slowing growth in China and sluggish growth in developed countries led most commodity prices to deteriorate by the end of 2011. As a result, many investors adjusted their positions, leading revenue to decline. While stabilizing financial markets and lower trading volumes have hindered industry growth in recent years, revenue started to recover along with commodity prices. Over the five years to 2021, the Commodity Dealing and Brokerage industry is forecast to grow more robustly...

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    Industry Report - Industry Locations Chapter

    In terms of geographic spread by region, the Great Lakes region has the largest portion of establishments, holding 28.7% of the industry. Illinois alone accounting for 24.7%. Chicago is the location of the CME Group, home to the original Chicago Metal Exchange and Chicago Board of Trade. The CME is the largest exchange for the trading of commodity contracts in the United States; about 98.0% of commodity contracts are now traded through the CME, including its latest acquisition, the New York Metal Exchange.

    The Mid-Atlantic has 22.0% of industry establishments, with New York making up 15.8%. New..

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    Additional Insights for the Commodity Dealing and Brokerage Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commodity Dealing and Brokerage Industry are

  • Having a good technical knowledge of the product
  • Ability to effectively manage risk
  • Must have license
  • IBISWorld analysts also discuss how external factors such as World GDP and S&P 500 in the Commodity Dealing and Brokerage industry impact industry performance..

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    Industry Products

    What is the Commodity Dealing and Brokerage Industry?

    This industry includes operators and individuals who trade commodity derivatives. Commodity derivatives, such as futures, forwards, swaps and options, are financial securities that offer returns based on the return of an underlying commodity, such as agricultural products, energy resources and foreign currency. Brokers execute buyers’ orders by arranging transactions on a commission or transaction-fee basis, while dealers buy and sell derivatives on their own accounts for profit.

    Industry Products
    Exchange-traded futures contracts
    Exchange-traded options contracts
    Trading derivatives contracts on own account
    Other OTC-traded derivatives contracts
    OTC-traded options contracts
    Trading currency and other commodity contracts on own account
    Investment management
    Industry Activities
    Commodity contracts dealing
    Commodity contracts options dealing
    Futures commodity contracts dealing
    Foreign currency exchange dealing
    Commodity contracts brokerage
    Commodity contracts options brokerage
    Futures commodity contracts brokerage

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • World GDP
  • S&P 500
  • Agricultural price index
  • Trade-weighted index
  • World price of crude oil

  • Current Performance
  • Large decline in oil prices negatively impacts revenue
  • Increasing regulation leads to consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulation increases industry viability
  • Commodities truly an asset class?
  • Table: Commodity Dealing and Brokerage Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commodity Dealing and Brokerage Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Mining
  • Utilities

  • Key Selling Industries
  • Stock & Commodity Exchanges

  • Products & Services
  • Exchange-traded futures contracts
  • Exchange-traded options contracts
  • Trading derivatives contracts on own account
  • Other
  • Trading currency and other commodity contracts on own account
  • Other OTC-traded derivatives contracts
  • OTC-traded options contracts
  • Investment management
  • Chart: Commodity Dealing and Brokerage Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Proprietary trading firms
  • Member firms of CME
  • Nonmember firms (pensions, mutual funds, insurance companies)
  • Proprietary trading by banks and investment banks
  • Hedge funds
  • Chart: Major Market Segmentation for the Commodity Dealing and Brokerage Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Clearing, execution and exchange fees
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Commodity Dealing and Brokerage

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commodity Dealing and Brokerage Industry

  • Industry Globalization
    Major Companies
    Bank of America Corporation Morgan StanleyThe Goldman Sachs Group Inc.JPMorgan Chase & Co.
  • Table: Bank of America Corporation - financial performance
  • Table: Morgan Stanley - financial performance
  • Table: The Goldman Sachs Group Inc. - financial performance
  • Table: JPMorgan Chase & Co. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Commodity Dealing and Brokerage Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Commodity Dealing and Brokerage Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • MSCI World Index (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Assets Under Management (Aum)
  • The value of financial assets managed by a portfolio manager or financial institution on behalf of investors.
  • Commodities Contracts
  • Agreements to buy a predetermined good, such as steel, corn, wheat, oil and gold, at a specific price and date in the future.
  • Exchange-Traded Funds (Etfs)
  • An investment fund that tracks multiple securities that is traded on an exchange, like an individual stock.
  • Financial Assets
  • Nonphysical assets such as shares, bonds, notes and bank balances.
  • Over-The-Counter (Otc)
  • A security traded in some context other than on a formal exchange, such as derivatives, which can be traded through a dealer network.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Commodity Dealing and Brokerage:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commodity Dealing and Brokerage market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commodity Dealing and Brokerage, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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